According to Apple annual proxy statement (PDF), Tim Cook’s pay is around 40% lower than the previous year – and the CEO himself endorsed it.
Apparently, during the internet giant’s annual shareholder advisory meeting in 2022, only 64% of the “Say on Pay” votes cast regarding executive compensation proposals were in favor of keeping their 2021 pay packages.
While it is still a majority of votes, it reflects a dramatic drop in approval year over year. According to 9to5Mac, 94.9 percent of shareholders who voted the previous year approved of the executive remuneration recommendations.
Apple’s Salary Committee included the Say on Pay voting results as well as Tim Cook’s own decision “to adjust his compensation in light of comments received” in determining this year’s pay packages.
Cook’s projected compensation for 2023 is $49 million, a $35 million decrease from his target income for 2022. His base salary stays at $3 million, and his annual cash incentive continues at $6 million, but the value of his stock reward has decreased from $75 million in 2022 to $40 million this year.
Furthermore, he was given an equity award that is 75 percent performance and 25 percent time-based vesting, rather than 50-50 as in 2022. Cook, who committed a few years ago to dedicate his money to charity, will most likely earn more than $49 million this year due to stock awards and bonuses.
According to Bloomberg, he made $99.4 million in 2022, $15.4 million more than his annual target compensation.
His overall compensation package in 2021 was $98.7 million. Critics, such as the advice company Institutional Shareholder Services, have already encouraged shareholders to vote against Cook’s pay package, citing concerns about the size and structure of his equity award.
“Half of the award lacks performance criteria,” the corporation previously stated. Cook’s pay increase illustrates the changing attitude regarding executive pay, and the CEO may be setting an example for his peers. After all, it is unusual for a senior executive to advocate that their own remuneration be reduced.