Citing investor guidance as well as a request from CEO Tim Cook, Apple Inc. has decided to cut his compensation by more than 40 percent to $49 million this year. However, to compensate for the loss, Apple has increased the percentage of stock units awarded and tied to Apple’s performance will increase to 75 percent from 50 percent.
Apple said in a regulatory filing that Cook’s latest pay was based on “balanced shareholder feedback, Apple’s exceptional performance, and a recommendation from Mr. Cook”. The company also plans to “position Mr. Cook’s annual target compensation between the 80th and 90th percentiles relative to our primary peer group for future years.”
The $49 million in target compensation includes the $3 million salary and $6 million bonus along with an equity award value of $40 million. His equity award value in 2022 was $75 million.
Earlier in 2022, Cook received compensation of $99.4 million as against $98.7 million in 2021. His 2022 compensation included $3 million in base salary, about $83 million in stock awards, and a bonus.
The 62-year-old has pledged to give away his wealth to charitable causes.
Apple has drawn criticism from groups such as Institutional Shareholder Services (ISS) about Cook’s previous compensation package stating half of the rewards didn’t depend on performance criteria like the company’s share price. But a majority of shareholders had backed Cook last year.
Apple also disclosed last year's compensation for Chief Financial Officer Luca Maestri, retail chief Deirdre O’Brien, and Chief Operating Officer Jeff Williams among other senior officials.
Apple shares declined 27 percent last year but have now climbed 2.7 percent so far this year.
-With inputs from Bloomberg
First Published: Jan 13, 2023 10:12 AM IST
