Tim Cook, the CEO of Apple, requested that the company “adjust his compensation” in response to feedback from shareholders who were dissatisfied with the company’s share price decline. As a result, the billionaire boss is anticipated to receive a pay cut of almost 50% this year, to approximately $49 million (£40 million).
Tim Cook, 62, took over as CEO when co-founder Steve Jobs retired before his passing in 2011; he received $99.4 million in 2022 and $98.8 million in 2021. The business, however, stated that it had set a “target compensation” of $49m for 2023 in a regulatory filing late on Thursday night. Tim Cook’s base salary and bonus for the upcoming year will stay at $3 million and $6 million, respectively. However, the “targeted” amount of share-based compensation he would receive will decrease from $75 million last year to $40 million this upcoming year.
Tim Cook Requested A Pay Cut
The number of share bonuses awarded will also be more influenced by Apple’s stock performance than it was the previous year. From 50% last year, now 75% of the share incentive is based on Apple’s stock market success.
Shares of Apple have dropped 23% over the past year to $133.41 after the market close on Thursday, which has some investors worried.
Institutional Shareholder Services, a shareholder advisory firm, advised investors to vote against Tim Cook’s compensation package last year, citing “serious issues” with the “design and amount” of the package. Cook was paid 1,447 times more than the typical Apple employee, according to ISS.
Apple claimed to have been in touch with investors to learn about their worries. The magnitude and form of the 2021 and 2022 equity awards given to Mr. Cook were noted by the majority of the shareholders who did not support our 2022 “voice on pay” proposal, according to the business.