Apple boss is OK with big pay cut
Apple CEO Tim Cook will take a more than 40% pay cut this year, as the company adjusts how it calculates his compensation – partly based on a recommendation from Cook himself.
Apple said in a regulatory filing that Cook’s target total compensation for 2023 would be US$49 million (NZ$76.7m), with a US$3m (NZ$4.7m) salary, a US$6m (NZ$9.4m) cash incentive, and US$40m (NZ$62.6m) in equity awards.
Last March the Cupertino, California-based company conducted an advisory shareholder vote on executive pay, with 6.21 billion shares voting in favour of the executive pay package and 3.44 billion against.
Apple said its compensation committee took into account shareholder feedback, the company’s performance, and a recommendation from Cook, who was promoted to CEO in 2011, to adjust his compensation in light of the feedback.
Apple said it sought feedback from shareholders last year about compensation, and received ‘‘overwhelming support for Mr. Cook’s exceptional leadership and the unprecedented value he has delivered for shareholders’’.
‘‘Those shareholders we spoke with that did not support our 2022 Say On Pay proposal consistently cited the size and structure of the 2021 and 2022 equity awards granted to Mr Cook as the primary reason for their voting decision.’’
Cook has received a US$3m base salary for the past three years, but his total compensation package jumped from US$14.8m (NZ$23.1m) in 2020 to US$98.7m (NZ$154.5m) in 2021 and US$99.4m (NZ$155.6m) last year.
Apple said Cook supported the changes to his compensation.