Tim Cook chooses to take massive CEO pay cut after shareholder vote

Apple’s CEO Tim Cook had his compensation cut by more than 40% in 2023. While he earned $150 million in 2022, the Chief Executive Officer, citing investor guidance and a request by Cook himself, to adjust his payment.

According to Bloomberg, Cook’s latest pay was based on “balanced shareholder feedback, Apple’s exceptional performance, and a recommendation from Mr. Cook.” In addition, the percentage of stock units awarded to Apple’s CEO and tied to the company’s performance will increase to 75% in 2023 from 50%.

The publication gives a bit more context on this change:

Apple has drawn criticism from groups such as Institutional Shareholder Services about Cook’s previous compensation package, but a majority of shareholders voted to approve it last year. ISS, a top advisory firm, 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. 

This $49 million compensation includes the same $3 million salary and $6 million bonus as in 2022. There’s also an equity award value of $40 million. Apple also disclosed the compensation for Chief Financial Officer Luca Maestri, General Counsel Kate Adams, retail chief Deirdre O’Brien, and Chief Operating Officer Jeff Williams.

They were all paid about $27 million, which includes salary, stock, and bonus. It’s a slight increase from the previous year, according to Bloomberg.

While it’s unusual for CEOs to ask for a pay cut, Tim Cook has already pledged to give away his wealth to charitable causes. Although he says he has begun doing so, the Apple CEO didn’t disclose which charities he’s already helping.

On March 10, the Cupertino company will have its Annual Meeting with investors. Unlike other years, this meeting will be online and not in the Steve Jobs Theater.

We are pleased to welcome shareholders to the 2023 Annual Meeting, to be held virtually on March 10, 2023, at 9:00 A.M. Pacific Time.

Your vote is important to us. Even if you plan on attending the Annual Meeting, we encourage you to vote your shares in advance to ensure that your vote will be represented at the Annual Meeting. To vote in advance online, visit proxyvote.com and enter the control number included in your Notice of Internet Availability of Proxy Materials, or, if you requested printed copies of the proxy materials, you may vote by phone or by mail.