Apple CEO Tim Cook will take over 40% of the pay cut this year from a year earlier amid the company’s adjustments on how it calculates its compensation, based on a suggestion from Cook himself.
Apple Inc. said in a regulatory filing late Thursday, “Cook’s target total compensation is $49 million for 2023, with a $3 million salary, $6 million cash incentive, and $40 million in equity awards.”
In Cupertino, California, in March last year, the company conducted an advisory shareholder vote on executive pay, with 6.21 billion shares voting in favor of the executive pay package and 3.44 billion against it. There were also abstentions and broker non-votes.
Apple said it sought feedback from shareholders last year about compensation and revenue, which received “overwhelming support for Mr. Cook’s exceptional leadership and the unprecedented value he has delivered for shareholders,” the company stated.
Cook has received a $3 million base salary for the past three years. Still, his total compensation—which includes the restricted awards—jumped from $14.8 million in 2020 to $98.7 million in 2021 and $99.4 million in 2022.
According to the filing, the company plans to position Cook’s annual target compensation between the 80th and 90th percentiles relative to its primary peer group for future years.
The company will hold its annual meeting on March 10 to cover business operations.