Apple CEO Tim Cook Receives a 40% Pay Cut
Apple CEO Tim Cook dinner will obtain a 40% reduce to his goal compensation in 2023 following the corporate’s newest shareholder vote.
Key Takeaways
- Apple CEO Tim Cook dinner will take a 40% pay reduce in 2023, decreasing his compensation to $49 million, down from $84 million final yr.
- Each numbers are compensation targets and Cook dinner’s 2022 pay totaled $99 million.
- Cook dinner’s fairness awards will likely be lowered from $75 million to $40 million and will likely be extra carefully tied to inventory efficiency.
- Apple inventory has appreciated over 1,200% since Cook dinner grew to become CEO in August 2011, far outpacing the S&P 500’s 290% return over this era.
- The choice to scale back Cook dinner’s got here in response to strain by institutional shareholders, after simply 64% of shareholders authorised of Cook dinner’s 2022 compensation bundle.
Cook dinner’s goal compensation for 2023, as set by shareholders, will whole $49 million. Cook dinner’s precise compensation for the yr will seemingly be greater as his whole compensation for 2022 was $99 million, almost 18% greater than his goal of $84 million. That $99 million was composed of $3 million in wage, $83 million in inventory awards, $12 million in money incentives, and over $1 million in different compensation.
The choice was made after final yr’s shareholder vote, through which simply 64% of Apple shareholders voted to approve Cook dinner’s compensation bundle, considerably lower than the 95% who authorised it in fiscal yr 2020.
The considerably nearer vote got here amid strain by Apple’s institutional shareholders and compensation committee to revise Cook dinner’s compensation. The committee reached out to shareholders to gauge how they felt about Cook dinner’s compensation. The committee carried out the adjustments partly in response to the conversations they’d with stockholders.
The change in Cook dinner’s compensation bundle will apply solely to his inventory awards, which in recent times have made up greater than half of his whole pay as Apple’s inventory value and market cap have surged. Within the 2023 fiscal yr, Cook dinner will earn $40 million in fairness awards, down from $75 million in 2022. The fairness award combine, which allocates compensation primarily based on inventory efficiency and time, will likely be allotted 75-25 in favor of efficiency, after being break up evenly in 2022.
Since Cook dinner took the helm as CEO in August of 2011, after the passing of Apple founder and then-CEO Steve Jobs, Apple shares (AAPL) have appreciated 1,212% after together with dividends, in comparison with a 290% return for the S&P 500.
Apple shares are comparatively unchanged in Friday buying and selling. They’re up almost 7% because the starting of the yr.
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