Apple CEO Tim Cook Agrees To Take 40% Pay Cut In 2023 Amid Shareholders' Criticism

Apple Inc is slashing its CEO Tim Cook's pay package by more than 40 per cent to $49 million in 2023 citing investor guidance and a request from Cook to adjust his pay

Apple Inc is slashing its Chief Executive Officer Tim Cook's pay package by more than 40 per cent to $49 million in 2023. The iPhone maker cited the investor guidance and a request from the chief executive to adjust his pay, reported news agency Bloomberg.

The changes include the percentage of stock units awarded to Cook and tied to Apple's performance which will be raised to 75 per cent in 2023 from 50 per cent, and in the future, the company said in a regulatory filing on Thursday.

Tim Cook’s Compensation In Recent Years

In 2022, Cook received compensation of $99.4 million, including $3 million in base salary, about $83 million in stock awards, and a bonus. In 2021, his total pay package was lesser as he received $98.7 million.

However, Cook's latest package has been affected by "balanced shareholder feedback, Apple's exceptional performance and a recommendation from Cook," the iPhone maker said in the filing. The company also plans to "position Cook's annual target compensation between the 80th and 90th percentiles relative to our primary peer group for future years," the report quoted the Cupertino-based company as saying.

Criticism Of Tim Cook’s Compensation

Earlier, the company attracted criticism from groups such as Institutional Shareholder Services on Cook's compensation packages even as a majority of shareholders had voted last year to approve it. ISS, a top advisory firm, argued that Cook's stock would continue to vest post-retirement and noted that half of the rewards didn't depend on performance criteria like the company's share price.

The $49 million in target compensation includes the same $3 million salary and $6 million bonus as in 2022, as well as an equity award value of $40 million. His equity award value in 2022 was $75 million. It means his actual total compensation for 2023 could fluctuate depending on the company's stock performance.

The 62-year-old business leader has pledged to give away his wealth to charitable causes.

Notably, it's considered rare for CEOs to suggest a cut in their own compensation. Pay packages have gotten increasingly lavish, and 2021 was a record year for executive compensation, according to Bloomberg data.

Apple also disclosed 2022 compensation for Chief Financial Officer Luca Maestri, General Counsel Kate Adams, retail chief Deirdre O'Brien and Chief Operating Officer Jeff Williams. Those executives were all paid about $27 million - including salary, stock and a bonus - in 2022, slight increases from the previous year.

The Cupertino, California-based technology giant also announced that its annual shareholder meeting will take place virtually on March 10.