Apple CEO Tim Cook has recommended the company take pay cuts this year after the shareholder uprising.
The world’s biggest tech company said it would cut Cook’s target salary to $49 million, 40% below his target salary for 2022 and about half his total compensation of $99.4 million. of Cook which was granted to him last year.
The vast majority of Cook’s compensation in 2022 – around 75% – was tied to company stock, with half of it dependent on share price performance.
But shareholders voted against Cook’s salary package after Apple shares fell nearly 27% last year. The vote is not binding, but the board’s compensation committee said Cook requested the cut.
“The Compensation Committee balanced shareholder feedback, Apple’s outstanding performance, and a recommendation from Mr. Cook to adjust his compensation in light of feedback received,” the company said in its published proxy statement. Thursday.
This year, the executive stock award target has been reduced to $40 million. About $30 million, or three-quarters, is tied to share price performance.
Cook’s base salary of $3 million will remain the same, the company said, along with a bonus of $6 million.
The board said it believes Cook’s new pay package “responds to shareholder feedback, while continuing to both align pay with performance and recognize Mr. Cook’s exceptional leadership.” .
The tech boss, who has run Apple since 2011, is worth an estimated $1.7 billion, according to Forbes.
Apple’s stock price, like other tech companies, plunged last year as coronavirus shutdowns shuttered some of its factories in China. Supply chain bottlenecks and fears that a global economic slowdown could reduce demand also drove its stock down.
In January last year, the tech giant became the first publicly traded company to reach a market capitalization of $3 trillion, but has since lost nearly $1 billion of that value.