Apple CEO Tim Cook takes 40% pay cut; here's why
Apple Inc said that the percentage of stock units awarded to Tim Cook and linked to Apple's performance would rise to 75 per cent in 2023 from 50 per cent, also in future years. Cook received $99.4 million in compensation for 2022, which included a $3 million base salary, approximately $83 million in stock awards, and a bonus.
Apple chief executive officer Tim Cook has taken a cut of 40 per cent to $49 million for FY 2023 after he earned nearly $100 million last year. Apple Inc will cut Cook's pay, citing investors' guidance and his own request.
The company said that the percentage of stock units awarded to Cook and linked to Apple's performance would rise to 75 per cent in FY 2023 from 50 per cent in future years. Cook received $99.4 million in compensation for FY 2022, which included a $3 million base salary, approximately $83 million in stock awards, and a bonus. This was slightly up from 2021 when his total pay package was $98.7 million.
Apple has now announced a significant cut in Cook's pay, reducing it to $49 million in FY 2023. The company cited investor guidance and Cook's request to adjust his pay as the reasons for the move. Cook's latest pay was based on 'balanced shareholder feedback, Apple's exceptional performance, and a recommendation from Cook,' according to a filing on Thursday by Apple Inc.
According to Bloomberg, Cook's total compensation for 2023 may vary depending on the company's stock performance.
Apple intends to 'position Cook's annual target compensation for future years between the 80th and 90th percentiles relative to our primary peer group.'
It's worth noting that there were concerns about Cook's pay last year when a top shareholder advisory firm asked Apple shareholders to vote against Cook's pay package. Apple shareholders expressed 'concern over the amount of Cook's total target compensation due to the size of his 2021 and 2022 equity awards,' according to the SEC filing.
Also, the 62-year-old has pledged to donate his fortune to charity. In 2015, Cook announced his intention to donate his fortune to charity.
The iPhone has also disclosed compensation for Chief Financial Officer Luca Maestri, General Counsel Kate Adams, retail chief Deirdre O'Brien, and Chief Operating Officer Jeff Williams through 2022. In 2022, all of them were paid approximately $27 million (including salary, stock, and a bonus), a slight increase from the previous year.