Investors Pushed Apple Inc. To Cut The Pay Package Of CEO Tim Cook To Over 40%
Apple Inc. has accepted the request of its Chief Executive Officer Tim Cook to cut his compensation by more than 40% in 2023. He took this step after the company drew criticism from investor forums that Cook’s stock would continue to vest post-retirement.
• Tim Cook’s compensation is reduced from $99.4 million to $49 million on his request and demand of investor forums
• Apple Inc. was under criticism from investor forums for rewarding Tim Cook with more stocks
How Much Compensation Was Tim Cook Drawing?
In 2021, Tim Cook’s total pay package was $98.7 million. But Apple Inc. raised his compensation to $99.4 million in 2022. It includes $3 million in base salary, about $83 million in stock awards, and a bonus.
Mr Cook will draw a package of $49 million including the $3 million salary and $6 million bonus, as well as an equity award value of $40 million. His equity award value in 2022 was $75 million. But how much Cook draws as compensation would base on the company’s stock performance.
The 62-year-old CEO has pledged to give away his wealth to charitable causes.
The percentage of stock units awarded to Cook and tied to Apple’s performance would increase to 75% in 2023 from 50%, as well as in future years, said Apple Inc. in a regulatory filing Thursday.
The company said that his latest compensation was based on “balanced shareholder feedback, Apple’s exceptional performance, and a recommendation from Mr. Cook. The iPhone maker also plans to “position Mr. Cook’s annual target compensation between the 80th and 90th percentiles relative to their primary peer group for future years.
Why Were Investor Forums Criticizing Mr Cook’s Compensation?
Institutional Shareholder Services complained that Cook’s stock would continue to vest post-retirement and that half of the rewards didn’t depend on performance criteria like the company’s share price. But a majority of shareholders voted to approve his compensation last year.