Apple CEO Tim Cook dinner is taking a 40 p.c pay lower in 2023 | Technoscoob
Tim Cook dinner is getting paid round 40 p.c decrease than final yr, in accordance with the annual proxy assertion (PDF) Apple has launched — and the CEO himself advisable it. Apparently, in the course of the tech big’s annual advisory assembly for shareholders in 2022, solely 64 p.c of the “Say on Pay” votes solid relating to the compensation proposals for executives was in favor of retaining their 2021 pay packages. Whereas that is nonetheless majority of the votes, it represents a big year-over-year decline in approval. As 9to5Mac notes, 94.9 p.c of the shareholders who voted the earlier yr was in favor of the compensation proposals for executives.
To determine this yr’s pay packages, Apple’s Compensation Committee took under consideration the Say on Pay’s voting outcomes and Tim Cook dinner’s personal suggestion “to regulate his compensation in mild of suggestions acquired.” For 2023, Cook dinner’s goal wage is $49 million, down $35 million from his goal wage in 2022. His base pay continues to be $3 million and his annual money incentive stays unchanged at $6 million, however his fairness award worth went from $75 million in 2022 to $40 million this yr. Additional, he was granted an fairness award that is 75 p.c efficiency and 25 p.c time-based vesting, as an alternative of 50-50 like 2022’s.
The reality is that Cook dinner, who vowed to donate his fortune to charity just a few years in the past, will probably earn greater than $49 million this yr resulting from inventory awards and bonuses. In keeping with Bloomberg, he earned $99.4 million in 2022, which was $15.4 million greater than his goal wage for the yr. In 2021, his complete pay package deal was $98.7 million. Critics like advisory agency Institutional Shareholder Companies beforehand urged shareholders to vote towards Cook dinner’s pay package deal, citing considerations about how large his fairness award is and the way it’s structured. “Half of the award lacks efficiency standards,” the agency beforehand mentioned. This shift in Cook dinner’s compensation displays the altering angle in the direction of govt pay, and the CEO may be setting an instance for his friends. It’s, in spite of everything, unusual for an govt his stage to advocate that their very own pay be lower.