Apple CEO Tim Cook takes 40% pay cut in 2023

Cook himself recommended a pay adjustment "in light of feedback received".

Tim Cook is paid about 40% less than last year, according to the annual proxy statement (PDF) released by Apple - and the CEO himself recommended it. Apparently, at the tech giant's annual shareholder advisory meeting in 2022, only 64% of "Say on Pay" votes cast on executive compensation proposals were in favor of keeping their compensation for 2021. is still the majority of votes, this represents a significant drop in year-over-year approval. As 9to5Mac notes, 94.9% of shareholders who voted the previous year were in favor of the executive compensation proposals.

In deciding this year's compensation packages, Apple's Compensation Committee considered the results of the Say on Pay vote and Tim Cook's own recommendation "to adjust his compensation in light of feedback received". For 2023, Cook's target salary is $49 million, down $35 million from his target salary in 2022. His base salary is still $3 million and his annual cash incentive remains unchanged. at $6 million, but the value of his stock award has fallen from $75 million in 2022 to $40 million this year. Additionally, he received an equity reward that is 75% performance and 25% time-based vesting, instead of 50-50 like in 2022.

The truth is that Cook, who pledged to donate his fortune to charity a few years ago, will likely earn more than $49 million this year from stocks and bonuses. According to Bloomberg, he earned $99.4 million in 2022, which is $15.4 million above his target salary for the year. As of 2021, his total salary was $98.7 million. Critics like advisory firm Institutional Shareholder Services have previously urged shareholders to vote against Cook's salary package, citing concerns about the size of his stock allotment and its structure. "Half the price lacks performance criteria," the company previously said. This change in Cook's compensation reflects the changing attitude towards executive compensation, and the CEO could set an example for his peers. After all, it's rare for an executive of his level to recommend a reduction in his own salary.

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