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Apple’s Compensation Committee has announced a significant reduction in CEO Tim Cook’s expected salary for 2023. According to the company’s proxy statement released today, Cook’s salary has been cut by more than 40%, from $99.4 million in 2022 to $49 million in 2023.
The pay cut is the result of Cook’s request, as stated in the statement, where the CEO suggests that his 2023 compensation should be lowered in light of feedback from shareholders. Cook’s 2023 compensation target is now approximately $50 million less than the previous year.
The filing also notes that the committee “discussed numerous factors with the Board and its independent compensation consultant, including Mr. Cook’s outstanding leadership, the immense scope, and complexity of his role as Apple’s CEO, the Board’s confidence in his long-term strategic decisions, the Company’s exceptional financial results delivered during 2021, shareholder feedback, and the value of his prior equity awards as compared to the value of his current outstanding equity awards”.
The statement goes on to say that “Balancing shareholder feedback, a desire to continue to create meaningful performance and retention incentives, and Mr. Cook’s support for changes to his compensation to reflect the feedback received, the Compensation Committee maintained the cash components of Mr. Cook’s 2023 compensation and reduced his target equity award grant value”.
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Despite the pay cut, Cook’s base salary of $3 million cash will remain the same as in 2022, as well as his annual cash incentive of $6 million. However, Cook’s equity award value will drop from $75 million in 2022 to $40 million this year.
The move by Apple’s Compensation Committee to reduce Cook’s salary reflects the growing trend of companies taking into account feedback from shareholders when making decisions about executive compensation. As the company continues to excel financially, it remains to be seen how these changes will impact Cook’s performance and the company’s overall success in the future.