Apple chief takes 40% pay cut, slashing salary by $35m
Apple’s boss Tim Cook has taken a pay cut of more than 40 per cent, slashing his salary by about $35m, a new regulatory filing by the company revealed. The tech giant chief’s pay will decrease from $84m last year to $49m in 2023 on his own recommendation.
“Mr Cook’s target total compensation is $49m, a reduction of over 40 per cent from his target 2022 total compensation,” Apple noted in the filing. While the Apple chief’s base salary remains at $3m, the regulatory filing says he will see more of his pay now tied to the company’s stock performance than it was in previous years.
The company’s shareholders expressed concern over the “amount of Mr Cook’s total target compensation due to the size of his 2021 and 2022 equity awards”, according to the regulatory filing. They reportedly expressed a preference for a “higher percentage” of Mr Cook’s equity award to be performancebased.
This means his 2023 salary could differ significantly based on the company’s performance this year as the filing suggests Mr Cook actually made $99.4m in 2022. Apple noted in the regulatory filing that the percentage of stocks awarded to Mr Cook tied to the company’s performance will now increase to 75 per cent in 2023, up from 50 per cent.
The tech company chief’s salary is based on “balanced shareholder feedback, Apple’s exceptional performance, and a recommendation from Mr Cook”, the filing noted. “Taking into consideration Apple’s comparative size, scope, and performance, the compensation committee also intends to position Mr Cook’s annual target compensation between the 80th and 90th percentiles relative to our primary peer group for future years,” the company noted.
Although the company continues to be a leading tech giant, its market cap dropped by about 27 per cent last year, losing $1 trillion from its peak. While Apple is outperforming its competitors like Meta and Amazon, the company still faces significant production hurdles, partly due to China’s handling of its Covid-19 outbreaks.
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