Following shareholder outcry, Tim Cook requested a more than 40% compensation decrease in 2023 from Apple.
According to a Thursday regulatory filing, Apple’s compensation committee awarded Cook a total “target remuneration” of $49mn, down from $84mn last year.
Cook kept his $3m base salary and $6m bonus. Apple said his equity award would drop from $75mn in 2022 to $40mn this year.
As some shareholders wanted Cook’s incentives more closely tied to future growth, his 2023 equity award included 75% of stock units related to Apple’s performance, up from 50% the year before.
Apple stated Cook’s remuneration is in the “80th and 90th” percentile of CEOs.
As Apple shares rose, Cook’s net wealth rose to $1.7bn, according to Forbes. He earned $99.4mn in 2022 and $98.8mn in 2021, a 500% gain from his $14.8mn in 2021.
In a non-binding advisory vote at Apple’s annual meeting last year, 64% of shareholders supported CEO pay packages. However, the company said in a filing that this was a “notable year-over-year decline” for many years. Because their annual “say on pay” proposals have gotten much more support from shareholders.
Apple said several shareholders who opposed its CEO compensation packages “consistently highlighted the amount and structure of the 2021 and 2022 equity awards issued to Mr. Cook as the key rationale for their vote decision”.
Apple claimed Tim Cook, who succeeded Steve Jobs as CEO in 2011, had widespread investor support.
“There was also overwhelming support for Mr. Cook’s excellent leadership and the unprecedented value he has delivered for shareholders.”
In the filing, the compensation committee stated it “balanced shareholder criticism, Apple’s extraordinary performance, and a suggestion from Mr. Cook to adjust his salary in light of the feedback received.”
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The document states Apple makes these selections “prior to the start of each fiscal year,” which ended September 24, 2022.
After months of turbulence at Chinese manufacturers, Apple issued a rare warning on November 6 that iPhone manufacturing would experience “severe” disruptions ahead of Christmas. Its shares have dropped over 20% in the past year.
Analysts expect Apple’s December quarter, its most profitable, to fall short of $124bn. Missing would end a 14-quarter growth streak.