Tim Cook’s Salary: After Earning Nearly $100 Million In 2022, Apple CEO Takes a 40% Pay Cut
New Delhi: At a time when companies across the world are handing out pink slips to thousands of their employees as part of their cost-cutting measures, Apple Chief Executive Officer Tim Cook himself has taken a 40 percent pay cut. Cook earned nearly $100 million last year.
The 62-year-old was paid $99.4 million in 2022. This includes $3 million in base salary, nearly $83 million in stock awards and bonuses.
Cook’s salary in 2022 was slightly higher than his salary package in 2021 – $98.7 million, 1,447 times the average salary of an Apple employee.
Now, Apple has announced a big cut in Cook’s compensation, reducing his salary to $49 million in 2023.
The company cited investor guidance and Cook’s own request to adjust his salary as reasons behind the move.
The iPhone maker said in a Thursday filing that Cook’s latest pay was “based on balanced shareholder feedback, Apple’s exceptional performance and Cook’s recommendation.”
As part of its latest compensation structure, the percentage of stock units awarded to the Apple CEO linked to company performance will increase from 50 percent to 75 percent, as well in future years.
Cooks’ target compensation of $49 million includes the same $3 million salary and $6 million bonus in 2022, as well as an equity award value of $40 million, nearly half of his equity award value of $75 million in 2022.
Cook’s actual total compensation for 2023 could fluctuate based on the company’s stock performance, Bloomberg reported.
Additionally, Apple “also plans to position Cook’s annual target return between the 80th and 90th percentile relative to our primary peer group for future years.”
It is worth sharing here that there were concerns around Cook’s compensation last year when a top shareholder advisory firm asked Apple investors to vote against Cook’s pay package.
The SEC filing indicated that Apple shareholders “expressed concerns about the total target compensation amount due to the size of Cook’s 2021 and 2022 equity awards”.
Apple’s CEO has also pledged to donate his wealth to charity. Seven years ago in 2015, Cook said he plans to donate his wealth to charity.
Meanwhile, iPhone also announced 2022 compensation for Chief Financial Officer Luca Maestri, General Counsel Kate Adams, Retail Chief Deirdre O’Brien and Chief Operating Officer Jeff Williams.
In 2022, all were paid about $27 million — including salary, stock and bonuses — in 2022, a slight increase from the previous year.
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