Apple CEO Tim Cook to take over 40% pay cut

Apple CEO Tim Cook will take a pay cut of more than 40% this year from a year earlier as the company adjusts how it calculates his compensation partly based on a recommendation from Cook himself.

Apple Inc. said in a regulatory filing late Thursday that Cook’s target total compensation was $49 million for 2023, with salary of $3 million, cash bonus of $6 million and $40 million in shares.

Last March, the Cupertino, Calif., company held a shareholder advisory vote on executive compensation with 6.21 billion shares voting in favor of executive compensation and 3.44 billion against. There were also abstentions and non-votes from brokers.

Apple said its compensation committee considers shareholder feedback, company performance and a recommendation from Cook, who was promoted to CEO in 2011, to adjust his compensation in light of feedback received.

Apple said last year it sought shareholder feedback on pay and received “overwhelming support for Mr. Cook’s exceptional leadership and the unprecedented value he has delivered to shareholders. The proposal consistently cited the size and structure of the 2021 and 2022 stock awards granted to Mr. Cook as the primary reason for their voting decision,” the company said.

Cook received a base salary of $3 million over the past three years, but his total compensation — which includes restricted awards — fell from $14.8 million in 2020 to $98.7 million in 2021 and $99.4 million in 2022.

Apple said Cook supports the changes to his compensation.

The company plans to position Cook’s annual target compensation between the 80th and 90th percentiles relative to its primary peer group for years to come, according to the filing.

The company will hold its general meeting on March 10.

By midday, Apple shares fell slightly to $133. The stock is down about 23% over the past year.

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