Tim Cook is getting paid round 40 p.c decrease than final yr, in response to the annual proxy statement (PDF) Apple has launched — and the CEO himself advisable it. Apparently, through the tech big’s annual advisory assembly for shareholders in 2022, solely 64 p.c of the “Say on Pay” votes forged concerning the compensation proposals for executives was in favor of retaining their 2021 pay packages. While 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’s personal advice “to adjust his compensation in light of feedback received.” For 2023, Cook’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. Further, he was granted an fairness award that is 75 p.c efficiency and 25 p.c time-based vesting, as a substitute of 50-50 like 2022’s. 

The fact is that Cook, who vowed to donate his fortune to charity a couple of years in the past, will probably earn greater than $49 million this yr because of inventory awards and bonuses. According to Bloomberg, he earned $99.4 million in 2022, which was $15.4 million greater than his goal wage for the yr. In 2021, his whole pay package deal was $98.7 million. Critics like advisory agency Institutional Shareholder Services beforehand urged shareholders to vote towards Cook’s pay package deal, citing considerations about how massive his fairness award is and the way it’s structured. “Half of the award lacks performance criteria,” the agency beforehand stated. This shift in Cook’s compensation displays the altering perspective in direction of govt pay, and the CEO could be setting an instance for his friends. It is, in any case, unusual for an govt his stage to suggest that their very own pay be minimize. 

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