Apple’s Tim Cook takes rare pay cut for CEOs after pushback But he will still make a fortune
Apple cuts Chief Executive Officer Tim Cook’s pay by more than 40% to $49 million
As part of the changes, the percentage of stock units awarded to Cook and tied to Apple’s performance will increase from 50% to 75% in 2023 and for years to come, the company said in a regulatory filing Thursday. For 2022, Cook received $99.4 million in compensation, including $3 million in base salary, approximately $83 million in stock awards and a bonus. That was a slight increase from 2021 when his total salary package was $98.7 million.
Cook’s latest pay was based on “balanced shareholder feedback, Apple’s exceptional performance and a recommendation from Mr. Cook,” the iPhone maker said in the filing. The company also plans to “position Mr. Cook’s target annual compensation between the 80th and 90th percentiles relative to our primary peer group for the coming years,” Apple said.
Apple has drawn criticism from groups like Institutional Shareholder Services for Cook’s previous compensation package, but a majority of shareholders voted to approve it last year. ISS, a top consulting firm, complained that Cook’s stock would vest after retirement and that half of the awards weren’t contingent on performance metrics like the company’s stock price.
Target compensation of $49 million includes the same salary of $3 million and bonus of $6 million as in 2022 and a stock value of $40 million. His Equity Award value in 2022 was $75 million. Cook’s actual total compensation for 2023 could fluctuate depending on the company’s stock performance.
Cook, 62, has pledged to donate his fortune to charity.
It’s rare for CEOs to recommend cutting their own compensation. Pay packages have only gotten bigger, and 2021 was a record year for executive pay, according to Bloomberg data.
But shareholders have increasingly pushed back on such packages. Mercer said a record number of so-called say-on-pay voting failed in 2021, possibly reflecting shareholder frustration with the companies’ performance during the pandemic.
Apple also announced 2022 compensation for Chief Financial Officer Luca Maestri, General Counsel Kate Adams, Retail Chief Deirdre O’Brien and Chief Operating Officer Jeff Williams. These executives each received about $27 million — including salary, stock, and bonus — in 2022, a slight increase from the previous year.
The Cupertino, California-based tech giant also announced that its annual shareholder meeting on March 10 will be held virtually.
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