Apple boss Tim Cook will see his annual compensation slashed by 40% or $35 million this year — at his own recommendation.
According to a new regulatory filing, the iPhone-maker’s chief’s annual salary package will drop from $84 million in 2022 to $49 million in 2023.
The company also noted that Cook himself requested for the pay cut, following a shareholder vote on his pay package. Apple also reduced the number of restricted stock units Cook would receive if he retires before 2026.
“The Compensation Committee balanced shareholder feedback, Apple’s exceptional performance, and a recommendation from Mr. Cook to adjust his compensation in light of the feedback received,” the company said in the filing.
Nonetheless, Apple’s board praised Cook’s performance and expressed their confidence in the CEO’s long-term strategic decisions.
“The Compensation Committee then approved the target annual compensation of our named executive officers for 2023, including the following changes to CEO compensation, which Mr. Cook supported, and that the Compensation Committee believes are responsive to shareholder feedback, while continuing both to align pay with performance and to recognize Mr. Cook’s outstanding leadership,” Apple said in its filing.
Slow year for Apple
In 2022, the iPhone maker’s shares declined amid supply chain issues and a global economic slowdown.
While Apple continues to be quite successful, its market cap has dropped $1 trillion last year. The company’s top product, the iPhone, faced production challenges especially as its manufacturing operation China took a hit due to a fresh wave of Covid infections.
