Tim Cook, CEO of Apple Inc., speaks on the “First Tool-In” ceremony at TSMC’s under construction facility in Phoenix, Arizona, Tuesday, December 6, 2022.
Caitlin O’Hara | Bloomberg | Getty Images
Apple CEO Tim Cook will receive a pay cut in 2023 to $49 million in total compensation, the corporate said in sawing with the SEC.
Cook demanded the change, Apple said within the filing, after shareholders voted on its compensation package. The company also reduced the variety of restricted storage units that Cook would receive if he retired before 2026.
In 2022, Cook earned nearly $83 million in stock awards, $12 million in incentives, and $3 million in salary. He also received advantages including retirement insurance premiums, security, personal air travel, and greater than $46,000 for vacations.
Apple’s compensation committee said it made the change in response to last 12 months’s vote wherein 64% of shareholders approved Cook’s compensation, up from 95% who approved it in Apple’s fiscal 12 months 2020.
Despite this, Apple’s management praised Cook’s performance and said it had confidence within the CEO’s long-term strategic decisions.
Executive compensation has recently come under increasing pressure from institutional shareholders. Institutional Shareholder Services advised Apple shareholders to vote against Cook’s compensation package ultimately 12 months’s annual meeting.
The compensation committee, which included Art Levinson, Al Gore and Andrea Jung, said it had contacted institutional shareholders to evaluate how they felt about Cook’s compensation.
“Based on these vital discussions, we’ve made changes to the dimensions and structure of Tim’s compensation for 2023,” the committee wrote.
More changes could also be in the shop.
“Given Apple’s comparable size, reach and performance, the Compensation Committee also intends to put Mr. Cook’s annual salary goal between the eightieth and ninetieth percentiles of our major peer group for years to come back,” the committee said.
Cook is principally paid in limited SKUs. The actual variety of Apple shares Cook vests will depend on Apple’s performance against the S&P 500. Apple shares have performed well enough that Cook typically vests as much as the utmost amount.
Since Cook took over as CEO in 2011, Apple shares have gained 1,212% in comparison with 290% for the S&P 500, Apple said.
In addition to reducing the general goal, 75% of Cook’s shares acquired will probably be tied to Apple’s 2023 share performance, as a substitute of fifty%.
Apple announced a stock grant for Cook in September 2020 until 2025. Cook received it on the primary day of Apple’s 2021 fiscal 12 months, which began in late September. Once approved, Cook’s stock grant would have given him 1 million shares value about $114 million on the time if Apple had met all of its goals.
Cook’s previous 2011 grant was value over $900 million at Apple’s September 2020 stock price.
Cook said in 2015 that he plans to donate his fortune to charity.
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