Apple CEO Tim Cook will receive a pay reduction of more than 40% from the previous year as a result of changes made to the way his remuneration is determined, some of which were suggested by Cook himself.
Cook’s target total remuneration for 2023, according to Apple Inc., is $49 million, including a $3 million salary, a $6 million cash incentive, and a $40 million stock reward.
Last March the Cupertino, California, company conducted an advisory shareholder vote on executive pay with 6.21 billion shares voting in favour of the executive pay package and 3.44 billion against. There were also abstentions and broker non-votes.
Apple said its compensation committee took into account shareholder feedback, the company’s performance and a recommendation from Cook, who was promoted to CEO in 2011, to adjust his compensation in light of the feedback received.
According to report, Apple said last year it sought feedback from shareholders about compensation and it received “overwhelming support for Mr Cook’s exceptional leadership and the unprecedented value he has delivered for shareholders …
Those shareholders we spoke with that did not support our 2022 Say on Pay proposal consistently cited the size and structure of the 2021 and 2022 equity awards granted to Mr Cook as the primary reason for their voting decision,” the company said.
Cook has received a $3m base salary for the past three years, but his total compensation – which includes the restricted awards – jumped from $14.8m in 2020 to $98.7m in 2021 and $99.4m in 2022.
The company planned to position Cook’s annual target compensation between the 80th and 90th percentiles relative to its primary peer group for future years, according to the filing.
The company will hold its annual meeting on March 10.
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