Apple CEO Tim Cook is likely to take a huge pay cut in 2023.
In a proxy statement to shareholders posted by Apple(opens in a new tab)One of the proposals is to reduce Cook’s compensation from $99 million in 2022 to $49 million this year. According to the document, the cut was proposed by Apple’s compensation committee, which consists of three Apple board members, due to shareholder concern over Cook’s total compensation (among other reasons) and proposed executive pay at the company. .
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“Mr. Cook’s 2023 target total compensation is $49 million, a more than 40% reduction from his 2022 target total compensation. The Compensation Committee determined Mr. Cook’s annual target compensation to be between the 80th and 90th percentiles relative to our primary peer group. between. for future years,” the document says.
According to the document, Cook supports the changes to his compensation.
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The proxy statement was issued ahead of the Apple Investor Day, which is scheduled for March 10, when shareholders will vote to approve or reject the offer.
It’s worth noting that Cook’s total targeted compensation for 2022 was actually $84 million, but Cook earned more due to Apple reaching certain sales and revenue targets. Cook’s base salary for 2023 is proposed at $3 million, and his annual cash incentive is set at $6 million – both the same as last year. His equity award value for 2023 is projected to be $40 million, down from $75 million last year, and a large portion of his equity award value is tied to performance.
Apple’s other top executives — CFO Luca Maestri, COO Jeff Williams, SVP of Retail and People Deirdre O’Brien and SVP, General Counsel and Secretary Kate Adams — are receiving the same target compensation as last year.
While the primary reason behind the proposed pay cut appears to be shareholder backlash, it is likely that Apple is also bracing for a possible recession in 2023. Apple navigated the pandemic years well, but sales have taken a hit lately due to supply chain constraints. The company’s shares fell 24 percent in price last year, briefly pushing its market capitalization below $2 trillion in December 2022.
