Tim Cook, chief executive officer of Apple Inc., speaks during a “First Tool-In” ceremony on the TSMC facility under construction in Phoenix, Arizona, on Tuesday, Dec. 6, 2022.
Caitlin O’Hara | Bloomberg | Getty Images
Apple CEO Tim Cook will receive a pay cut in 2023 to $49 million in total compensation, the corporate said in a filing with the SEC.
Cook requested the change, Apple said within the filing, following a shareholder vote on his pay package. The corporate also reduced the variety of restricted stock units Cook would receive if he retires before 2026.
In 2022, Cook made slightly below $83 million in stock awards, $12 million in incentives and $3 million in salary. He also got advantages including retirement plan contributions, security, personal air travel and greater than $46,000 in vacation cash-out.
Apple’s compensation committee said it made the change in response to last yr’s say-on-pay vote, by which 64% of shareholders approved of Cook’s compensation, down from 95% who approved it for Apple’s 2020 fiscal yr.
Still, Apple’s board praised Cook’s performance, and said it has confidence within the CEO’s long-term strategic decisions.
Executive compensation has come under increasing pressure from institutional shareholders of late. Institutional Shareholder Services advisable that Apple shareholders vote against Cook’s pay package finally yr’s annual meeting.
The compensation committee, comprised of Art Levinson, Al Gore and Andrea Jung, said it reached out to institutional shareholders to gauge how they felt about Cook’s pay.
“Based on these necessary conversations, we’ve made changes to the scale and structure of Tim’s 2023 compensation,” the committee wrote.
More alterations could possibly be in store.
“Considering Apple’s comparative size, scope, and performance, the Compensation Committee also intends to position Mr. Cook’s annual goal compensation between the eightieth and ninetieth percentiles relative to our primary peer group for future years,” the committee said.
Cook is paid mostly in restricted stock units. The variety of actual shares of Apple stock that Cook vests is determined by the corporate’s performance versus the S&P 500. Apple’s stock has done well enough that Cook typically vests the utmost amount.
Since Cook took over as CEO in 2011, Apple stock has returned 1,212% versus 290% for the S&P 500, Apple said.
Along with reducing the entire goal, 75% of Cook’s vesting shares will probably be tied to Apple’s stock performance in 2023, as a substitute of fifty%.
Apple announced a stock grant for Cook in September 2020 running through 2025. Cook received it on the primary day of Apple’s fiscal 2021, which began at the top of September. When it was approved, Cook’s stock grant would have given him 1 million shares price about $114 million on the time if Apple were to hit all its targets.
Cook’s previous stock grant from 2011 ended up being price greater than $900 million at Apple’s September 2020 share price.
Cook said in 2015 that he plans to donate his fortune to charity.
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