Tim Cook Takes a 40% Pay Cut Following Shareholder Vote

According to an SEC filing, Apple CEO Tim Cook has opted for a 40% pay reduction in 2023, bringing his total compensation to $49 million, CNBC is reporting.

This change follows a shareholder vote on Cook’s pay package, where the majority of shareholders approved the adjustment. His 2022 earnings included nearly $83 million in stock awards, $12 million in incentives, and a $3 million salary.

In addition to the above, Cook received benefits such as retirement contributions, security, personal air travel, and over $46,000 in vacation cash-out.

Apple’s compensation committee, consisting of Art Levinson, Al Gore, and Andrea Jung, cited the 64% approval in last year’s say-on-pay vote as a factor in the decision. Despite the pay cut, the board expressed confidence in Cook’s overall performance.

Executive compensation, particularly Cook’s, faced scrutiny from institutional shareholders, with Institutional Shareholder Services recommending against his pay package. Several discussions led to adjustments in the final size and structure of Cook’s 2023 compensation.

Looking ahead, the committee aims to position Cook’s annual target compensation between 80 to 90%. Cook’s pay is mainly in restricted stock units, with vesting tied to Apple’s performance compared to the S&P 500.

As part of the changes, 75% of Cook’s vesting shares will now be linked to Apple’s stock performance in 2023, up from the previous 50%. Apple had previously granted Cook a stock grant in September 2020, extending through 2025.

Since Cook assumed the role of CEO in 2011, Apple’s stock has outperformed the S&P 500 by returning 1,212%.