Apple chief executive Tim Cook will take a more than 40 per cent pay cut this year from a year earlier as the company adjusts how it calculates his compensation partly based on a recommendation from Mr Cook himself.
Apple said in a regulatory filing that Mr Cook’s target total compensation is $49 million for 2023, with a $3 million base salary, and $6 million cash incentive – both unchanged from the previous year – and $40 million in equity awards.
Last March the company, based in Cupertino, California, conducted an advisory shareholder vote on executive pay, with 6.21 billion shares voted in favour of the executive pay package and 3.44 billion against.
There were also abstentions and broker non-votes.
Apple said its compensation committee took into account shareholder feedback, the company’s performance and a recommendation from Mr Cook, who was promoted to chief executive in 2011, to adjust his compensation in light of the feedback received.
Apple said Mr Cook supported the changes to his compensation.
The company plans to position Mr Cook’s annual target compensation between the 80th and 90th percentiles relative to its primary peer group for future years, according to the filing.
In 2021, Mr Cook received a compensation package valued at $98.7 million.
Just three million dollars of that was salary.
The vast majority came from a grant of restricted stock, valued at $82.3 million.
The company will hold its annual meeting on March 10th.
In early trading, Apple shares edged down to $132.38.
The stock has declined about 23 per cent in the past year.
