Apple CEO Tim Cook takes 40% pay cut. His new salary is…

Apple Inc. is slicing Chief Govt Officer Tim Cook dinner’s compensation by greater than 40% to $49 million in 2023, citing investor steering and a request from Cook dinner himself to regulate his pay.

As a part of the modifications, the share of inventory models awarded to Cook dinner and tied to Apple’s efficiency will improve to 75% in 2023 from 50%, in addition to in future years, the corporate stated in a regulatory submitting Thursday. For 2022, Cook dinner acquired compensation of $99.4 million, together with $3 million in base wage, about $83 million in inventory awards and a bonus. That was up barely from 2021, when his whole pay bundle was $98.7 million.

Cook dinner’s newest pay was based mostly on “balanced shareholder suggestions, Apple’s distinctive efficiency and a advice from Mr. Cook dinner,” the iPhone maker stated within the submitting. The corporate additionally plans to “place Mr. Cook dinner’s annual goal compensation between the eightieth and ninetieth percentiles relative to our major peer group for future years,” Apple stated.

Apple has drawn criticism from teams akin to Institutional Shareholder Companies about Cook dinner’s earlier compensation bundle, however a majority of shareholders voted to approve it final yr. ISS, a prime advisory agency, complained that Cook dinner’s inventory would proceed to vest post-retirement and that half of the rewards didn’t rely on efficiency standards like the corporate’s share worth.

The $49 million in goal compensation contains the identical $3 million wage and $6 million bonus as in 2022, in addition to an fairness award worth of $40 million. His fairness award worth in 2022 was $75 million. Cook dinner’s precise whole compensation for 2023 may fluctuate based mostly on the corporate’s inventory efficiency.

Cook dinner, 62, has pledged to offer away his wealth to charitable causes.

It’s uncommon for CEOs to suggest their very own compensation be docked. Pay packages have gotten more and more lavish, and 2021 was a document yr for govt compensation, in line with Bloomberg information.

However shareholders have more and more pushed again on such packages. A document variety of so-called say-on-pay votes failed in 2021, which can have mirrored shareholders’ frustrations with how corporations carried out in the course of the pandemic, in line with Mercer.

Apple additionally disclosed 2022 compensation for Chief Monetary Officer Luca Maestri, Normal Counsel Kate Adams, retail chief Deirdre O’Brien and Chief Working Officer Jeff Williams. These executives have been all paid about $27 million — together with wage, inventory and a bonus — in 2022, slight will increase from the earlier yr.

The Cupertino, California-based know-how big additionally introduced that its annual shareholder assembly will happen nearly on March 10.

Apple shares declined 27% final yr, although that was much less of a drop than the one suffered by the tech-heavy Nasdaq Composite Index. They’ve climbed 2.7% up to now this yr.