Apple CEO Tim Cook dinner is taking a 40 % pay reduce in 2023
Tim Cook dinner is getting paid round 40 % decrease than final 12 months, in response to the annual proxy statement (PDF) Apple has launched — and the CEO himself beneficial it. Apparently, in the course of the tech big’s annual advisory assembly for shareholders in 2022, solely 64 % of the “Say on Pay” votes solid concerning the compensation proposals for executives was in favor of retaining their 2021 pay packages. Whereas that is nonetheless majority of the votes, it represents a big year-over-year decline in approval. As 9to5Mac notes, 94.9 % of the shareholders who voted the earlier 12 months was in favor of the compensation proposals for executives.
To resolve this 12 months’s pay packages, Apple’s Compensation Committee took into consideration the Say on Pay’s voting outcomes and Tim Cook dinner’s personal suggestion “to regulate his compensation in mild of suggestions acquired.” For 2023, Cook dinner’s goal wage is $49 million, down $35 million from his goal wage in 2022. His base pay continues to be $3 million and his annual money incentive stays unchanged at $6 million, however his fairness award worth went from $75 million in 2022 to $40 million this 12 months. Additional, he was granted an fairness award that is 75 % efficiency and 25 % time-based vesting, as an alternative of 50-50 like 2022’s.
The reality is that Cook dinner, who vowed to donate his fortune to charity just a few years in the past, will doubtless earn greater than $49 million this 12 months as a result of inventory awards and bonuses. Based on Bloomberg, he earned $99.4 million in 2022, which was $15.4 million greater than his goal wage for the 12 months. In 2021, his complete pay bundle was $98.7 million. Critics like advisory agency Institutional Shareholder Providers beforehand urged shareholders to vote in opposition to Cook dinner’s pay bundle, citing issues about how huge his fairness award is and the way it’s structured. “Half of the award lacks efficiency standards,” the agency beforehand mentioned. This shift in Cook dinner’s compensation displays the altering perspective in direction of govt pay, and the CEO is perhaps setting an instance for his friends. It’s, in any case, unusual for an govt his stage to advocate that their very own pay be reduce.
All merchandise beneficial by Engadget are chosen by our editorial staff, impartial of our mother or father firm. A few of our tales embrace affiliate hyperlinks. In the event you purchase one thing via one among these hyperlinks, we could earn an affiliate fee. All costs are appropriate on the time of publishing.