Tim Cook hopes to earn $49 million in salary this year.
Tim Cook, the CEO of Apple, will see a significant pay reduction as a result of his request to reduce his compensation. According to the filing, Cook anticipates earning $49 million in remuneration, which is 40% less than his anticipated salary for 2022.
A change in the CEO’s compensation
This year, Apple will change the Chief Executive Officer’s salary. According to a source from MacRumors, Tim Cook aims to earn $49 million in compensation, and the salary reductions were chosen and requested by the CEO himself.
In addition to the compensation reductions, there have been other changes. Cook will now receive 75% of the stock units that are allocated to him and dependent on Apple’s success, up from 50% in previous years.
The filing states that the decision was based on three factors. Balanced shareholder feedback, exceptional performance, and CEO endorsements. Apple’s board of directors praised Cook and his confidence in making long-term strategic decisions.
“Apple also plans to position Mr. Cook’s target annual compensation in the 80th to 90th percentile relative to key peer groups over the next few years,” the company added.
Compared to his target pay last year, this is a significant 40% lower than his previous pay was $99.4 million. Aside from his salary, his $13.4 million includes $4 million in salary, approximately $83 million in stock compensation, and other forms of compensation. In 2021, on the other hand, his pay was $98.7 million.
Compensation will be adjusted, but this year’s salaries, bonuses, and stock compensation will remain unchanged. However, CNBC reports that there are no concrete figures on the matter yet, as the actual total compensation for 2023 will be based on the performance of the company’s stock price.
The compensation committee, which includes Art Levinson, Al Gore, and Andrea Jung, said it consulted institutional investors about Cook’s salary decisions and their views.
The Committee stated, “Given Apple’s size, scope, and track record, the Compensation Committee has set Mr. Cook’s target annual compensation for the next several years at a level between the 80th and 90th percentile of our major peer group. We plan to position it in between.”
Since the CEO took over his company in 2011, he has been active in donating his fortune to charity.
The company has received some criticism from groups such as Institutional Shareholder Services regarding past CEO compensation. According to Bloomberg, ISS is the top of his advisory firm expressing concern about the possibility that Cook’s stake could carry over after he retires.