The Apple boss Tim cookHis salary is expected to be cut by nearly 50% this year to around $49m (£40m) after the billionaire boss asked the company to “adjust his pay” given feedback from shareholders who Disappointed with the decline in the company’s stock were stories.
Cook, 62, who became CEO after co-founder Steve Jobs resigned before his death in 2011 paid $99.4 million in 2022 and $98.8 million in 2021. But the Company said in a regulatory filing late Thursday night that it had set a “target compensation” of $49 million for 2023.
“The Compensation Committee balanced shareholder feedback, Apple’s exceptional performance and a recommendation from Mr. Cook to adjust his compensation in light of the feedback received.” Apple said on file.
Cook’s annual base salary and bonus remain unchanged at $3 million and $6 million, respectively. But the “targeted” amount he’ll receive in the form of stock-based bonuses will drop from $75 million last year to $40 million next year.
The size of stock awards will also be more dependent on Apple’s share price performance than it was last year. Now 75% of the stock bonus is tied to Apple’s stock market performance, up from 50% last year.
Apple’s shares are down 23% over the past 12 months to $133.41 at Thursday’s close, raising concerns among some shareholders.
The company said 64% of shareholders supported its pay plans at its annual meeting last year, but acknowledged that there had been a “notable year-on-year decline as our annual pay say proposals” received much more support from shareholders would have received for many years”.
Shareholder advisory service Institutional Shareholder Services last year urged investors to vote against Cook’s pay package, saying there were “significant concerns” about the package’s “design and scope.” ISS pointed out that Cook was paid 1,447 times more than the average Apple employee.
Apple said it has reached out to investors to hear their concerns. “Those shareholders we spoke to who did not support our 2022 ‘Say on Pay’ proposal consistently cited the size and structure of Mr. Cook’s 2021 and 2022 stock awards as the primary reason for their voting decision,” he said the enterprise.
“Based on shareholder feedback, a desire to continue to provide meaningful performance and retention incentives, and Mr. Cook’s support for changes to his compensation to reflect the feedback received, the Compensation Committee maintained the cash components of Mr. Cook’s compensation for 2023 and reduced his Target value for the allocation of shares,” he added.
Cook’s total salary of $99.4 million last year included $630,600 in personal security expenses and $712,500 in private jet use. His 2022 salary was a little higher than the $98.8 million raised in 2021, but that was it more than 570% higher than the $14.7 million he was paid in 2020.
Cook, who sits on more than $1 billion in personal wealth, according to the Bloomberg Billionaires Index, he said plans to give away his entire fortune before he dies. In 2015, he told Fortune magazine that after educating his then-10-year-old nephew, he planned to donate his entire fortune to charity.