Tim Cook cutting 40% of his income this year, read why
Key Takeaways:
- Tim Cook, the CEO of Apple, will receive a 40% pay cut for the upcoming year.
- Due to the modification, Mr. Cook’s base annual salary will remain at $3 million and will also include a bonus of up to $6 million.
- The 62-year-net old’s worth is reportedly estimated to be around $1.7 billion by Forbes magazine.
There will be a 40% reduction in Apple chief executive Tim Cook’s annual pay package this year.
The constant criticism from shareholders leads the Technology giant Mr Cook to take such a decision.
He received a total “target compensation” from Apple’s compensation committee of $49 million (£45.1 million) for 2023.
A global economic slowdown and problems with the supply chain caused the iPhone manufacturer’s shares to drop precipitously last year.
Apple stated in a filing with a US financial watchdog that “the Compensation Committee stable shareholder feedback, Apple’s outstanding performance, and a recommendation from Mr Cook to adjust his recompense in light of the feedback received.”
Mr Cook’s basic yearly pay will remain at $3 million due to the change, along with a bonus of up to $6 million.
How he will be given shares in the company will make the biggest difference to his compensation package.
He received $75 million in shares from the company in 2022, with half contingent on Apple’s stock market performance.
His stock award target for this year has been reduced to $40 million, with 25% of that contingent on share performance.
Although Mr Cook’s actual pay for 2017 was $99.4 million, the target for his compensation in 2022 was $84 million. This sum included $712,500 for his use of a private jet as well as $630,600 for personal security expenses.
An influential investor advisory group urged Apple shareholders to vote against Mr Cook’s compensation package last year.
Institutional Shareholder Services (ISS) wrote to investors to express “significant concerns” regarding the “design and magnitude” of the package.
The ISS reported that Mr Cook’s pay was 1,447 times greater than the typical Apple employee’s salary.
Just a few weeks before Apple co-founder Steve Jobs passed away in August 2011, Mr Cook was named CEO of the company.
During a turbulent year for the technology sector, under Mr Cook’s leadership, Apple became the 1st firm to reach a stock market valuation of $3 trillion before falling to about $2.1 trillion.
Lockdowns at Chinese factories, supply chain hiccups, and a global economy slowdown have contributed to a 20% decline in Apple’s share price over the past year.
According to Forbes magazine, the 62-year-personal old’s wealth is estimated to be around $1.7 billion. Mr Cook has promised to donate all of his wealth during his lifetime.
