Apple’s Tim Cook Cuts 40% of His Salary Following Shareholders’ Criticism

Written by Muhammad Muneeb Ur Rehman ·  2 min read >

Apple Inc. is reducing Chief Government Officer Tim Cook Prepare dinner’s compensation by greater than 40% to $49 million in 2023, citing investor steerage and a request from Prepare dinner himself to regulate his pay.

As a part of the adjustments, the share of inventory models awarded to Prepare dinner and tied to Apple’s efficiency will enhance to 75% in 2023 from 50%, in addition in future years, the corporate mentioned in a regulatory submission Thursday. For 2022, Prepare dinner obtained compensation of $99.4 million, together with $3 million in base wage, about $83 million in inventory awards, and a bonus. That was up barely from 2021 when his whole pay bundle was $98.7 million.

Prepare dinner’s newest pay was based mostly on “balanced shareholder suggestions, Apple’s distinctive efficiency, and a suggestion from Mr. Prepare dinner,” the iPhone maker mentioned within the submission. The corporate additionally plans to “place Mr. Prepare dinner’s annual goal compensation between the eightieth and ninetieth percentiles relative to our main peer group for future years,” Apple mentioned.

Apple has drawn criticism from teams equivalent to Institutional Shareholder Companies about Prepare dinner’s earlier compensation bundle, however, a majority of shareholders voted to approve its final 12 months. ISS, a prime advisory agency, complained that Prepare dinner’s inventory would proceed to vest post-retirement and that half of the rewards didn’t depend upon efficiency standards like the corporate’s share worth. 

The $49 million in goal compensation contains the identical $3 million wage and $6 million bonus as in 2022, in addition to a fairness award worth $40 million. His fairness award worth in 2022 was $75 million. Prepare dinner’s precise whole compensation for 2023 may fluctuate based mostly on the corporate’s inventory efficiency.

Cook has worked at Apple for decades and began serving as the company’s CEO in 2011 after co-founder Steve Jobs stepped down from the company’s helm. The company has grown significantly since then, and its market capitalization briefly topped $3 trillion a year ago, but Apple’s share price fell 27% throughout 2022, which was a difficult year for tech stocks generally.

 Cook’s compensation package received pushback last year from the advisory firm Institutional Shareholder Services, which recommended Apple shareholders vote against it at a March meeting, citing “significant concerns regarding the design and magnitude.” 

Stockholders ended up approving the package, with 64.4% voting in support, though Cook later backed efforts to reel in his pay, which has risen rapidly in the past few years. Cook’s compensation package in 2020 was worth $14.8 million, a fraction of what he made either last year or in 2021 when he was paid $98.7 million.

Prepare dinner, 62, has pledged to present away his wealth to charitable causes. It’s uncommon for CEOs to advocate their very own compensation be docked. Pay packages have gotten more and more lavish, and 2021 was a file of 12 months for government compensation, in keeping with Bloomberg information.

However, shareholders have more and more pushed again for such packages. A file variety of so-called say-on-pay votes failed in 2021, which can have mirrored shareholders’ frustrations with how corporations carried out throughout the pandemic, in keeping with Mercer.

Apple said that some shareholders who did not support Apple’s executive pay packages “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”. But Apple said Cook, the former operations chief who succeeded the late Steve Jobs as CEO in 2011, still had broad investor backing.

 It said: “There was also overwhelming support for Mr. Cook’s exceptional leadership and the unprecedented value he has delivered for shareholders.” The company said in the filing the compensation committee’s decision “balanced shareholder feedback, Apple’s exceptional performance, and a recommendation from Mr. Cook to adjust his compensation in light of the feedback received.”

 The filing notes Apple makes these decisions “before the start of each fiscal year”, which ended on September 24, 2022. Apple has had a rocky few months following turmoil at factories in China, which resulted in it issuing a rare warning, on November 6, that iPhone production would face “significant” disruptions ahead of the holiday season.  Analysts have downgraded revenue forecasts for the December quarter Apple’s most lucrative period with the consensus now anticipating revenues will not match the $124bn earned a year earlier. Such a miss would break a 14-quarter growth streak.

Apple additionally disclosed 2022 compensation for Chief Monetary Officer Luca Maestri, Normal Counsel Kate Adams, retail chief Deirdre O’Brien and Chief Working Officer Jeff Williams. These executives have been all paid about $27 million together with wages, inventory, and a bonus in 2022, a slight will increase from the earlier 12 months. 

The Cupertino, California-based expertise large additionally introduced that its annual shareholder assembly will happen just about on March 10. Apple shares declined 27% final 12 months, although that was much less of a drop than the one suffered by the tech-heavy Nasdaq Composite Index. They have climbed 2.7% to this point this 12 months.

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Written by Muhammad Muneeb Ur Rehman
Muneeb is a full-time News/Tech writer at He is a passionate follower of the IT progression of Pakistan and the world and wants to educate the people of Pakistan about tech affairs. His favorite part about being a tech writer is tech reviews and giving an honest and clear verdict to his readers. Contact Muneeb on his LinkedIn at: Profile