Apple CEO Tim Cook accepted a 40 % pay reduce that can carry his 2023 compensation all the way down to $49 million, in keeping with a submitting with the Securities and Exchanges Commission.
Cook, a billionaire who reportedly made 1,447 times more than the typical Apple worker, really useful the pay adjustment based mostly on suggestions from shareholders, in keeping with the corporate’s submitting on Thursday.
“Taking into consideration Apple’s comparative size, scope, and performance, the Compensation Committee also intends to position Mr. Cook’s annual target compensation between the 80th and 90th percentiles relative to our primary peer group for future years,” the submitting states.
The compensation committee, which is chaired by Andrea Jung and in addition has Al Gore and Art Levinson as members, famous it continues to acknowledge Cook’s “outstanding leadership.”
The committee mentioned it spent the previous yr working with Apple administration to acquire extra data on shareholders’ views on Cook’s pay.
“Based on these important conversations, we have made changes to the size and structure of Tim’s 2023 compensation,” the committee mentioned.
Last yr, Cook acquired a complete compensation of $84 million, together with $3 million as his base wage, $6 million as an annual money incentive and $75 million in fairness award worth. He additionally acquired different advantages, together with a $46,154 trip cash-out and $591,196 for safety bills.
Under this yr’s proposed targets, Cook’s base wage and bonus will keep the identical, however his fairness award worth will drop to $40 million, 75% of which can now be based mostly on how Apple’s shares carry out.
In 2022, simply 64% of shareholders authorized Cook’s compensation bundle. This is considerably decrease than the vote for the 2020 fiscal yr, when 95% of shareholders voted in favor of Cook’s pay, according to CNBC.
The Institutional Shareholder Services called on shareholders final yr to not approve Cook’s pay, citing “significant concerns regarding the design and magnitude of the equity award” Cook acquired in 2021 and noting the dramatic distinction between his pay and the typical Apple worker’s.
Cook grew to become CEO in 2011 shortly earlier than the dying of Apple co-founder Steve Jobs.
The firm has confronted headwinds this previous yr, partially on account of the worldwide monetary downturn and COVID lockdowns in China that shut down a few of its manufacturing amenities.
Its inventory market worth fell under $2 billion this month for the primary time since March 2021, according to Reuters. The firm had turn into the first U.S. company to hit over a $3 trillion market cap in early 2022.
Cook’s internet price presently stands at $1.7 billion, according to Forbes.
He told Fortune Magazine in 2015 he plans to donate his private wealth to charity after paying for his nephew’s school schooling.
