In 2023, Tim Cook will suffer a significant salary cut since he requested that his compensation be adjusted in response to comments and criticism from Apple’s stakeholders. Apple released its annual proxy statement to investors today, which includes information regarding CEO salaries, shareholder proposals, and more.
Tim Cook is willingly accepting a huge wage decrease in2023, but he will still get a number of perks. For instance, he would have his own plane at his disposal for both official and unofficial trips.
According to the article published accompanying the announcement, Tim Cook’s “target remuneration of $49 million” in 2023 represents a decrease of almost 47 percent compared to his earnings in 2022.
The $49 million that has been established as Cook’s objective total pay for 2023 is a decrease of more than 45 percent from his target total compensation for 2022. The Remuneration Committee plans to place Cook’s yearly target compensation between the 80th and 90th percentiles compared to our key reference group in future years, taking into account Apple’s relative size, scope, and performance.
Executive compensation is one of several duties overseen by Apple’s Compensation Committee on the board of directors. Today’s filing reveals that Cook proposed a change to his pay package in response to comments made during the “Say on Pay” poll and vote conducted by the Compensation Committee.
The Pay Committee reviews and makes compensation decisions prior to the beginning of each fiscal year. As a direct consequence of the Say on Pay vote in 2022, about 53% of institutionally owned shares saw increased shareholder participation on CEO remuneration that year. The Compensation Committee considered Apple’s strong performance, shareholder input, and Cook’s request that his compensation be modified in light of the information.
Tim Cook’s total remuneration in 2021 was around $98 million. Executive remuneration in 2021 was approved by 64% of shareholders at the annual meeting the following year.
A substantial chunk of Cook’s remuneration is performance-based and related to Apple’s stock, so although his target compensation for 2022 was $84 million, he got around $99.4 million.
In 2023, Cook’s compensation will consist of a $3 million salary and a $6 million case incentive. These numbers have not been altered in any way. However, as we said before, the bulk of Cook’s compensation is based on Apple shares. The total value of his 2023 equity reward is limited to $40 million. In comparison to 2022, when he earned $75 million, this is a significant decrease.
In an interview from2015, Cook said he planned to employ a “systematic approach” to giving the whole of his money. He was vague, only saying that he had started making donations “quietly.”
Cook also receives a private plane that he may use for both professional and personal purposes throughout the year, in addition to his yearly salary. Due to “security and efficiency issues,” the Apple board of directors mandated in 2017 that Cook use private jets for all of his business and personal travel.
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