Apple CEO Tim Cook will receive a pay cut of more than 40% this year
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This year, Tim Cook, the CEO of Apple, will get a wage decrease of more than 40%.
According to the computer giant, Mr. Cook asked for a reduction in pay after receiving feedback from shareholders.
His overall “target remuneration” from Apple’s compensation committee for 2023 is $49 million (£45.1 million).
In the face of supply chain problems and a global economic recession, the iPhone manufacturer’s shares dropped precipitously last year.
“The Salary Committee considered shareholder criticism, Apple’s extraordinary performance and a proposal from Mr. Cook to increase his compensation in light of the feedback received,” Apple stated in a filing with a US financial watchdog.
Mr. Cook will continue to receive a bonus of up to $6 million in addition to his $3 million annual base salary.
The main distinction in his compensation is the method by which he will be given company stock.
Half of the $75 million in shares that the business gave him in 2022 was contingent on how well Apple did on the stock market.
His stock award objective for this year has been reduced to $40 million, with the performance of the shares determining $7 million of that.
Although Mr. Cook’s actual total salary for 2017 was $99.4 million, his compensation for 2022 was expected to be $84 million. Along with $712,500 for his use of a private jet, that sum also includes $630,600 for personal security expenses.
A top investor advisory organisation recommended Apple shareholders vote against Mr. Cook’s compensation package the previous year.
In a letter to investors, Institutional Shareholder Services (ISS) stated there are “serious concerns” regarding the “nature and quantity” of the package.
Under Mr. Cook’s direction, Apple became the first business to achieve a $3 trillion stock market valuation before declining to approximately $2.1 trillion amid a turbulent year for the technology sector.
Apple’s stock price has fallen more than 20% over the past year as a result of supply chain delays, COVID lockdowns at Chinese manufacturers, and a slump in the global economy.
According to Forbes magazine, the 62-year-old’s net worth is approximately $1.7 billion. In his lifetime, Mr. Cook has promised to donate his whole fortune.