Apple CEO Tim Cook requests and receives a 40% pay cut after shareholder vote

Tim Cook dinner, main govt officer of Apple Inc., speaks all through a “First Tool-In” ceremony at the TSMC facility under design in Phoenix, Arizona, on Tuesday, Dec. 6, 2022.

Caitlin O’Hara | Bloomberg | Getty Photos

Apple CEO Tim Prepare dinner will receive a pay back minimize in 2023 to $49 million in total compensation, the firm said in a submitting with the SEC.

Cook asked for the improve, Apple reported in the filing, subsequent a shareholder vote on his pay back package deal. The enterprise also minimized the quantity of restricted inventory units Cook dinner would receive if he retires in advance of 2026.

In 2022, Cook created just below $83 million in stock awards, $12 million in incentives, and $3 million in income. He also acquired gains like retirement plan contributions, protection, personal air journey, and over $46,000 in family vacation funds-out.

Apple’s compensation committee stated that it created the adjust in response to very last year’s say-on-pay vote, in which 64% of shareholders authorised of Cook’s payment, down from 95% that accepted it for Apple’s 2020 fiscal 12 months.

Still, Apple’s board praised Cook’s efficiency, and reported it has self confidence in the CEO’s prolonged-expression strategic choices.

Government payment has occur underneath raising pressure from institutional shareholders of late. Institutional Shareholder Services advised that Apple shareholders vote in opposition to Cook’s fork out bundle at past year’s yearly meeting.

The compensation committee, comprised of Artwork Levinson, Al Gore, and Andrea Jung, stated it attained out to institutional shareholders to gauge how they felt about Cook’s spend.

“Based on these essential discussions, we have made modifications to the dimension and structure of Tim’s 2023 compensation,” the committee wrote.

Much more alterations could be in retail store.

“Having into consideration Apple’s comparative dimensions, scope, and efficiency, the Compensation Committee also intends to position Mr. Cook’s yearly goal payment involving the 80th and 90th percentiles relative to our main peer team for upcoming several years,” the committee said.

Prepare dinner is paid out primarily in limited inventory models. The number of real shares of Apple stock that Cook vests relies upon on Apple’s overall performance compared to the S&P 500. Apple’s stock has done well sufficient that Cook usually vests the utmost quantity.

Given that Cook dinner took above as CEO in 2011, Apple inventory has returned 1.212% vs . 290% for the S&P 500, Apple said.

In addition to lessening the whole focus on, 75% of Cook’s vesting shares will be tied to Apple’s stock efficiency in 2023, rather of 50%.

Apple announced a inventory grant for Cook in September 2020 functioning by way of 2025. Cook been given it on the to start with working day of Apple’s fiscal 2021, which started at the finish of September. When it was permitted, Cook’s inventory grant would have given him 1 million shares well worth about $114 million at the time if Apple were being to strike all its targets.

Cook’s previous inventory grant from 2011 ended up becoming well worth additional than $900 million at Apple’s September 2020 share selling price.

Cook dinner said in 2015 that he ideas to donate his fortune to charity.

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