Apple CEO Tim Cook will take a more than 40 per cent pay cut this year from a year earlier as the company adjusts how it calculates his compensation partly based on a recommendation from Cook himself.
Apple Inc. AAPL-Q said in a regulatory filing late Thursday that Cook’s target total compensation is $49-million for 2023, with a $3-million salary, $6-million cash incentive and $40-million in equity awards.
Last March the Cupertino, California, company conducted an advisory shareholder vote on executive pay with 6.21 billion shares voting in favor of the executive pay package and 3.44 billion against. There were also abstentions and broker non-votes.
Apple said its compensation committee took into account shareholder feedback, the company’s performance and a recommendation from Cook, who was promoted to CEO in 2011, to adjust his compensation in light of the feedback received.
Apple said last year it sought feedback from shareholders about compensation and it received “overwhelming support for Mr. Cook’s exceptional leadership and the unprecedented value he has delivered for shareholders….Those shareholders we spoke with that did not support our 2022 Say on Pay proposal consistently cited the size and structure of the 2021 and 2022 equity awards granted to Mr. Cook as the primary reason for their voting decision,” the company said.
Cook has received a $3-million base salary for the past three years, but his total compensation – which includes the restricted awards – jumped from $14.8-million in 2020 to $98.7-million in 2021 and $99.4-million in 2022.
Apple said Cook supported the changes to his compensation.
The company plans to position Cook’s annual target compensation between the 80th and 90th percentiles relative to its primary peer group for future years, according to the filing.
The company will hold its annual meeting March 10.
In midday trading, Apple shares edged down to $133. The stock has declined about 23 per cent in the past year.