Apple’s Tim Cook takes 40% pay cut

In 2023 it will receive ‘only’ 49 million dollars

Apple CEO Tim Cook voluntarily takes a 40% pay cut in 2023, an unusual move that comes “in response to shareholder feedback.” With this decision, Cook’s compensation should be this year at $49 million, down from $84 million in 2022. But his pay will likely exceed that target after bonuses and stock bonuses. Apple declined to comment further on the decision to the Washington Post.

It is unusual for executives to reduce their pay but, writes the US newspaper, the pay of CEOs has become increasingly unpopular with the population. Executive pay has increased 1,460 percent since 1978, according to analysis by the Economic Policy Institute. CEOs were paid 399 times more than a typical worker in 2021, an all-time high.

At the company’s annual meeting of shareholders in 2022, 64% voted to approve Cook’s compensation package, up from 94% the previous year. The consultancy Institutional Shareholder Services recommended that shareholders object to the package “due to concerns over the design of the share award and the size of the pay,” according to its proxy research report. Since Cook replaced Apple founder Steve Jobs in 2011, the tech giant’s market capitalization has exploded by $2 trillion, far outpacing gains from the S&P 500 over the same period. The company said its 2023 compensation package is in the 80th or 90th percentile “compared to our core peer group.” Most of Cook’s pay is tied to the performance of Apple’s stock. Cook’s base salary is unchanged at $3 million, as is his $6 million bonus. Last January, Apple became the first publicly traded company to reach a market capitalization of $3 trillion. But the difficult economic environment wiped out nearly $1 billion.