After a request from CEO Tim Cook, Apple is cutting his compensation by more than 40 percent in 2023 to around $49 million for the year. While that may seem like a massive cut, Cook’s potential stock awards could increase in future years if the company hits certain targets. This has been ratified by the investors in Apple Inc., and will apply with immediate effect.
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According to Apple’s regulatory filing this week, the changes include an increase in the percentage of stock units awarded to Cook and tied to Apple’s performance will increase to 75 percent in 2023 from 50 percent. This new arrangement will also apply in future years until renegotiated. This is based on “balanced shareholder feedback, Apple’s exceptional performance and a recommendation from Mr. Cook,” according to Apple. The company will also “position Mr. Cook’s annual target compensation between the 80th and 90th percentiles relative to our primary peer group for future years.”
In 2022, Tim Cook received $99.4 million in total remuneration, which included $3 million in base salary, about $83 million in stock awards, and a bonus. It was very similar to his remuneration the year before, which totalled $98.7 million.
Institutional Shareholder Services (ISS), a top advisory firm, complained that Cook’s stock would continue to vest post-retirement, meaning that he would no longer be bound by the current performance of Apple’s share price. However, according to Bloomberg data, executive payment packages have skyrocketed in recent years, and Cook can be commended for the upfront decrease.
Apple also disclosed 2022 compensation for Chief Financial Officer Luca Maestri, General Counsel Kate Adams, retail chief Deirdre O’Brien and Chief Operating Officer Jeff Williams. Those executives were all paid about $27 million — including salary, stock and a bonus — in 2022, slight increases from the previous year.
