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Apple’s boss Tim Cook has taken a pay cut of greater than 40 per cent, slashing his salary by about $35m, a latest regulatory filing by the corporate revealed.
The tech giant chief’s pay will decrease from $84m last yr to $49m in 2023 on his own advice.
“Mr Cook’s goal total compensation is $49m, a discount of over 40 per cent from his goal 2022 total compensation,” Apple noted within the filing.
While the Apple chief’s base salary stays at $3m, the regulatory filing says he’ll see more of his pay now tied to the corporate’s stock performance than it was in previous years.
The corporate’s shareholders expressed concern over the “amount of Mr Cook’s total goal compensation as a result of the dimensions of his 2021 and 2022 equity awards”, in keeping with the regulatory filing.
They reportedly expressed a preference for a “higher percentage” of Mr Cook’s equity award to be performance-based.
This implies his 2023 salary could differ significantly based on the corporate’s performance this yr because the filing suggests Mr Cook actually made $99.4m in 2022.
Apple noted within the regulatory filing that the proportion of stocks awarded to Mr Cook tied to the corporate’s performance will now increase to 75 per cent in 2023, up from 50 per cent.
The tech company chief’s salary relies on “balanced shareholder feedback, Apple’s exceptional performance, and a advice from Mr Cook”, the filing noted.
“Bearing in mind Apple’s comparative size, scope, and performance, the compensation committee also intends to position Mr Cook’s annual goal compensation between the eightieth and ninetieth percentiles relative to our primary peer group for future years,” the corporate noted.
Although the corporate continues to be a number one tech giant, its market cap dropped by about 27 per cent last yr, losing $1 trillion from its peak.
While Apple remains to be outperforming its competitors like Meta and Amazon, the corporate still faces significant production hurdles, partly as a result of China’s handling of its Covid-19 outbreaks.