Apple boss Tim Cook is taking a 40% pay reduce – at his personal request
briefly: We’re used to listening to about CEOs of main corporations accepting ignominious pay rises in occasions of financial hardship and layoffs, however Tim Cook is bucking the development. The Apple boss will take about 40% much less wage in 2023 than he did final 12 months, a call that got here partially from Cook’s personal advice. That does not imply he is on the lookout for low cost coupons within the newspapers: Cook may nonetheless make greater than $49 million this 12 months.
Cook’s pay reduce follows a pay-speak vote at Apple’s 2022 annual shareholder advisory assembly. Only 64% of the manager pay-related votes favored maintaining the 2021 pay bundle for executives. This is a pointy drop from the 94.9% sure vote recorded a 12 months in the past.
Although most shareholders voted in favor, Apple factored within the decline in Say-on-Pay help when calculating Cook’s 2023 compensation. It additionally adopted the CEO’s personal recommendation to “modify pay primarily based on suggestions obtained”.
Cook’s goal compensation for 2023 is $49 million, down $35 million from final 12 months. His base wage of $3 million and bonus of $6 million remained the identical, however the worth of his fairness awards fell from $75 million to $40 million. Additionally, his fairness award is 75% performance-based and 25% time-based vesting, in comparison with a 50/50 break up final 12 months.
Cook made $99.4 million final 12 months, $15.4 million above his 2022 wage goal, so he may finish the 12 months with greater than $49 million, Bloomberg wrote.
Cook grew to become a billionaire in 2020 and is now price an estimated $1.7 billion. That’s excellent news for a trigger that benefited from his becoming a member of the Giving Pledge in 2015, when he pledged to donate his fortune to charity.
In addition to paying his compensation, Apple paid $591,196 final 12 months for Cook’s safety, which included private safety companies, 9to5Mac reported. It additionally spent $767,319 in air journey bills, together with hourly charges for utilizing a non-public jet (Apple required him to make use of one for security and effectivity causes), gasoline, departure and touchdown charges.