Tim Cook , Apple ‘s CEO , will charge around 40% in 2023 compared to last year “in light of feedback received.”
Tim Cook , current CEO of Apple , will receive a lower salary during 2023 compared to what he had last year.
The head of those from Cupertino and other executives of the technology firm will suffer a salary cut during this new period as a result of Cook ‘s own recommendation to “Adjust his compensation in light of the comments received” .
According to the annual proxy statement that Apple recently made public on the recommendation of its own CEO, during the technology firm’s annual shareholder advisory meeting in 2022, only 64% of the votes cast in the “Say on Pay” vote on the Executive compensation proposals ruled in favor of keeping their 2021 salary packages.
Apple executives will have less salary in 2023
While the results of the most recent “Say on Pay” remain favorable for the salaries that executives have been receiving since 2021 for the most part, the truth is that they represent a significant year-on-year decline in approval. 94.9% of the shareholders who voted the previous year were in favor of the executive compensation proposals, according to the 9to5Mac portal .
In deciding this year’s salary packages, Apple’s Compensation Committee took into account the results of the “Say on Pay” vote and the aforementioned recommendation from Tim Cook . By 2023, Cook’s target salary is $49 million, down $35 million from 2022. His base salary remains $3 million and his annual cash incentive remains unchanged at $6 million, but the value of his prize in shares went from US$75 million in 2022 to US$40 million this year. In addition, he has been awarded 75% based on results and 25% based on time, instead of 50% as in 2022.
Tim Cook’s salary in 2023
What is certain is that with everything and the salary reductions applied to Tim Cook , the CEO of the technology giant will probably earn more than $39 million in 2023 due to stock awards and bonuses. According to what the Bloomberg portal mentions , the businessman earned US$99.4 million in 2022, 15.4 million more than his target salary for that year. In 2021, his total salary package was $98.7 million.
Separately, critics like advisory firm Institutional Shareholder Services have previously urged shareholders to vote against Cook ‘s salary package , citing concerns about how big his equity premium is and how it’s structured. “Half of pay lacks performance criteria,” the company said.
This change in Cook ‘s salary reflects changing attitudes toward executive pay, and the CEO may be setting an example for his peers because it’s rare for an executive at his level to recommend cutting their own pay .