Tim Cook, the chief executive officer of Apple, is slated to receive a modest 1 percent reduction in total compensation for the current year. The executive’s overall remuneration for his leadership of the iPhone maker totals 41.6 percent of the prior year’s level, following a recommendation from the executive himself to adjust pay in response to shareholder feedback from the multinational.
The Compensation Committee noted that it balanced shareholder perspectives with Apple’s outstanding performance, advising an adjustment to Mr Cook’s compensation in light of the received feedback.
Consequently, Cook’s target for 2023 is set at 49 million dollars (about 45 million euros), representing a 41.6 percent decrease from the 2022 target of 84 million dollars (about 78 million euros).
Specifically, the Apple CEO will continue to receive a base salary of 3 million dollars (approximately 2.8 million euros). He will also retain the same annual cash prize that has been awarded each year since 2016, along with a 6 million dollar (about 5.5 million euros) bonus that matches the 2022 level.
However, the target value of Apple’s CEO compensation attributed to the company’s stock component has been reduced to 40 million dollars (roughly 37 million euros), down from 75 million dollars (around 69 million euros) in the prior year.
Additionally, stock-based compensation is weighted to reflect 75 percent of the overall package, up from 50 percent in Cook’s 2022 package.
In a statement, the Compensation Committee indicated that given Apple’s size, reach, and performance, the target for Mr. Cook’s compensation in future years is intended to settle between 80 percent and 90 percent of the company’s main peer group as a benchmark.
Following the consultative vote and the company’s engagement with shareholders, the committee reaffirmed 2023 compensation while acknowledging Cook’s leadership, which the board believes continues to align salary with performance and shareholder interests. The company notes that these decisions reflect ongoing efforts to balance executive incentives with long-term value creation for stockholders (as documented in the compensation report released by Apple’s governance team).