Apple CEO Tim Cook dinner is probably going getting an enormous pay minimize in 2023.
In a proxy assertion for shareholders posted by Apple, one of many proposals is to cut back Cook dinner’s compensation from $99 million in 2022 to $49 million this 12 months. In accordance with the doc, the minimize was proposed by Apple’s Compensation Committee, which consists of three Apple Board members who suggest govt pay on the firm, attributable to shareholder concern over Cook dinner’s complete compensation (amongst different causes).
“Mr. Cook dinner’s 2023 goal complete compensation is $49 million, a discount of over 40% from his 2022 goal complete compensation. The Compensation Committee additionally intends to place Mr. Cook dinner’s annual goal compensation between the eightieth and ninetieth percentiles relative to our main peer group for future years,” the doc says.
In accordance with the doc, Cook dinner helps the adjustments for his compensation.
The proxy assertion was launched forward of Apple Investor Day, which is scheduled for March 10, which is when the shareholders will vote to approve or reject the proposal.
It is value noting that Cook dinner’s complete goal compensation for 2022 was truly $84 million, however Cook dinner made extra attributable to Apple reaching sure gross sales and revenue targets. Cook dinner’s base wage for 2023 is proposed to be $3 million, and his annual money incentive is ready to $6 million – each the identical as final 12 months. His fairness award worth for 2023 is proposed to be $40 million, down from $75 million final 12 months, and the next portion of his fairness award worth is tied to efficiency.
Different Apple high executives – CFO Luca Maestri, COO Jeff Williams, SVP of Retail and Folks Deirdre O’Brien and SVP, Common Counsel and Secretary Kate Adams – are getting the identical goal compensation as final 12 months.
Whereas the first cause behind the proposed pay minimize seems to be shareholder suggestions, it is probably that Apple can also be bracing for a possible recession in 2023. Apple navigated the pandemic years effectively, however gross sales have currently been struggling attributable to provide chain shortages. The corporate’s shares dropped 24 % in worth final 12 months, briefly pushing its market capitalisation under $2 trillion in Dec. 2022.