Apple’s Chief Executive Officer, Tim Cook is taking a 40 per cent compensation cut in 2023. The company said the move comes after a request from Cook and investor guidance to slash his salary package to about $49 million (roughly Rs. 399 crores), amid shareholders show disappointment at the fall in the company’s share price.
In a regulatory filing on Thursday, the company said in a regulatory filing late that it had set a “target compensation” of $49m for 2023. Cook’s annual basic salary will remain unchanged at $3m, as well as a bonus of up to $6m. However, the “targeted” amount he will receive in share-based bonuses will fall from $75m last year to $40m this coming year. “The compensation committee balanced shareholder feedback, Apple’s exceptional performance, and a recommendation from Cook to adjust his compensation in light of the feedback received,” Apple said.
In 2022, Tim Cook received compensation of $99.4 million (roughly Rs. 809 crore), including $3 million in base salary, about $83 million in stock awards, and bonuses. A year prior, in 2021, his total pay package was $98.7 million (roughly Rs. 803 crores).
In its filings, the company noted that the amount given in share bonuses will also be more dependent on Apple’s share price performance than it was last year. After the change, 75 per cent of the share bonus is dependent on Apple’s stock market performance. It was at 50 per cent last year.
Over the past 12 months, Apple’s shares have fallen by 23 per cent, which is raising concerns among some shareholders. The Cupertino California-based technology company announced that its annual shareholder meeting will take place virtually on March 10.
Apple also revealed 2022 compensation for other senior roles such as Chief Financial Officer Luca Maestri, General Counsel Kate Adams, retail chief Deirdre O’Brien, and Chief Operating Officer Jeff Williams. All executives were paid about $27 million – including salary, stock, and a bonus – in 2022.