Apple CEO Tim Cook Agrees to Take Over 40% Pay Cut in 2023
Apple today filed a proxy statement notifying shareholders of its 2023 Annual Meeting, set to be held virtually on March 10, 2023, at 9am PT.
“There is a lot more to say about Apple’s year, and in that spirit, I’d like to invite you to join our 2023 Annual Meeting of Shareholders on Friday, March 10th. I hope you’ll join us,” said Cook.
Also in the filing were 2023 compensation changes, as determined by the Compensation Committee, which “evaluates and makes compensation decisions prior to the start of each fiscal year.”
The 2022 Say on Pay advisory vote “led to broader shareholder engagement on executive compensation in 2022 of approximately 53% of institutional shares held.”
The filing explains, “the Compensation Committee balanced shareholder feedback, Apple’s exceptional performance, and a recommendation from Mr. Cook to adjust his compensation in light of the feedback received.”
One of the changes was to Cook’s annual pay, which he supported, a cut of over 40% compared to 2022, down to $49 million.
“Taking into consideration Apple’s comparative size, scope, and performance, the Compensation Committee also intends to position Mr. Cook’s annual target compensation between the 80th and 90th percentiles relative to our primary peer group for future years,” said the filing.
“The percentage of performance-based RSUs granted to Mr. Cook was increased from 50% to 75% of his 2023 target equity award and the percentage of his performance-based RSUs will be at least 75% of his target equity awards for future years,” it added.
Cook’s pay in 2022 was $99.4 million, up from the $98.7 million he received in 2021. Based on today’s changes, Cook’s pay will be more dependent on Apple’s stock performance. As of writing, Apple shares are trading at $133.41 USD per share, down 22.5% in the past year.
Apple’s Q1 2023 earnings call is set to take place on February 2, 2023, at 2pm PT.