CEO of Apple Tim Cook to take 40% pay cut in 2023. And in the vent that the shareholders get to agree, the CEO will get to have lower stock compensation.
CEO Of Apple Tim Cook to Take 40% Pay Cut In 2023
Apple CEO Tim Cook will take a pay cut this very year voluntarily, if only shareholders approve of the decision at the upcoming Apple Investor Day which will be held on March 10.
The reduced compensation of Cook is one of many proposals that were put forth on a proxy statement for shareholders ahead of Investor day. The proxy statement notes that Apple’s CEO supports the development to drop his combined salary and expected compensation to $49 million in 2023 which is down from the $99 million in the previous year.
And aside from $9 million in base salary and cash incentives, the remaining part of that compensation is in equity that is tied to performance. And given just how much the company did in sales and income, Cook made $15 million above his target pay in 2022 alone.
Apple’s Board Formed a Compensation Committee to Decide Executive Pay
Many members of Apple’s board come together to form a compensation committee that helps to decide the executive pay, and according to the statement on the proxy, they partially proposed this pay cut in response to shareholder feedback.
This is coming in the form of an annual vote at the yearly investor meeting which is internally known as Say on Pay. This meeting asks shareholders whether they agree with just how much executives, and in this case, mainly Cook, are compensated which as you should know went down to 64% approval which is now down from nearly 95% back in 2021.
The Reason for the Move
This pay cut ultimately seems like a course correction to help reflect the opinions and ideas of shareholders who in previous years were fine paying Cook. Apple has well weathered all the aftermath of the pandemic and supply chain shortages, and at the time that shareholders expressed lower confidence in the firm, Apple had just reported revenues up 11% in the first quarter of 2022.
But however, as the recently released proxy document has noted, the $99 million compensation of cook was 1,177 times the $84,493 salary of apples median employee.