Apple CEO Tim Cook dinner will likely be receiving a uncommon pay reduce this 12 months, and in keeping with media experiences, that is one thing that Cook dinner himself requested. Offered the shareholders approve of the choice on the upcoming Apple Investor Day on March 10, Cook dinner will obtain a pay reduce of greater than 40% this 12 months.
In response to a submitting by Apple with the SEC, the pay reduce is at Cook dinner’s personal advice, which can scale back the whole compensation obtained by Apple’s chief government to $49 million. This can be a steep drop from the $84 million that was Cook dinner’s goal compensation final 12 months, despite the fact that he ended up exceeding the goal. Apple’s board praised Cook dinner’s efficiency, including that the corporate had confidence in Cook dinner’s long-term strategic selections.
Final 12 months, he exceeded the goal of $84 million in complete compensation to obtain a complete of $99.4 million, which incorporates about $83 million in inventory awards and a bonus. The opposite advantages he obtained final 12 months embody retirement plan contributions, safety, private air journey, and over $46,000 in trip cash-out. In 2021, his complete pay package deal amounted to $98.7 million.
As a part of the adjustments and the pay reduce, the proportion of inventory items awarded to Cook dinner and tied to Apple’s efficiency will enhance from 50% in 2022 to 75% in 2023. Breaking apart Cook dinner’s goal compensation for the 12 months, we discover that his base wage ($3 million) and annual money incentive ($6 million) stay unchanged for 2023. His fairness award worth is the one which obtained hit – it dropped from $75 million in 2022 to $40 million in 2023.
In response to the annual proxy assertion launched by Apple for its buyers, the pay reduce comes on the again of suggestions (criticism, to be extra correct) from shareholders, together with the iPhone maker’s “distinctive efficiency” and a advice from Cook dinner himself. Ultimately, Cook dinner’s precise complete compensation for the 12 months might fluctuate, based mostly on how Apple performs within the inventory markets.
“Bearing in mind Apple’s comparative measurement, scope, and efficiency, the Compensation Committee additionally intends to place Mr. Cook dinner’s annual goal compensation between the eightieth and ninetieth percentiles relative to our main peer group for future years,” Apple’s compensation committee mentioned on the matter.
They added that that they had made the change to Cook dinner’s goal compensation for the 12 months in response to final 12 months’s say-on-pay vote, through which 64% of shareholders authorized of Cook dinner’s compensation (down from practically 95% in 2021). Apple mentioned that it represented a “notable year-over-year decline, as our annual say on pay proposals have obtained a lot larger ranges of shareholder help for a few years.”