Apple is cutting Tim Cook’s total pay by more than 40% on the chief executive’s own guidance.
Cook, who has been at the helm since 2011, is among the highest paid executives and said in 2015 he plans to donate all of his fortunes. Even with the cut, he’s likely to remain one of the top earners.
Cook’s 2023 compensation target now sits at $49 million, compared to his 2022 total target of $84 million, according to a filing with the SEC. His base pay and annual cash incentive will stay the same at $3 million and $6 million, respectively, but his equity award value is on the chopping block.
It’s uncommon for executives to call for their own pay cuts. But Cook’s decision comes after a shift in mentality among institutional shareholders, especially as the tech sector faced broad sell-offs. Apple shares dropped around 27% in 2022.
“Balancing shareholder feedback, a desire to continue to create meaningful performance and retention incentives, and Mr. Cook’s support for changes to his compensation to reflect the feedback received, the Compensation Committee maintained the cash components of Mr. Cook’s 2023 compensation and reduced his target equity award grant value,” Apple wrote in the filing.
Cook’s actual pay could vary by the end of 2023, since a lot of it is based on stock performance. In 2022, Cook ended up making $99.4 million, according to the filing. In 2021, Cook made $98.7 million total.
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