Apple CEO Tim Cook will take a major pay cut in 2023, according to the company's 2023 Proxy Statement filed with the SEC today.
In 2022, Cook had a target compensation of $84 million, although he ended up making around $99 million. For 2023, his target compensation is $49 million, consisting of a $3 million base salary, annual cash incentive of $6 million, and an equity award value of $40 million.
Apple says it reduced Cook's target compensation for 2023 due to shareholder feedback.
With input from the Board and the Compensation Committee's independent compensation consultant, the Compensation Committee makes CEO compensation decisions prior to the start of each fiscal year. In determining the appropriate amount of each compensation component for 2022, the Compensation Committee discussed numerous factors with the Board and its independent compensation consultant, including Mr. Cook's outstanding leadership, the immense scope and complexity of his role as Apple's CEO, the Board's confidence in his long-term strategic decisions, the Company's exceptional financial results delivered during 2021, shareholder feedback, and the value of his prior equity awards as compared to the value of his current outstanding equity awards. Balancing shareholder feedback, a desire to continue to create meaningful performance and retention incentives, and Mr. Cook's support for changes to his compensation to reflect the feedback received, the Compensation Committee maintained the cash components of Mr. Cook's 2023 compensation and reduced his target equity award grant value.
Apple also notes that as of the end of 2022, Apple's Relative TSR (total shareholder return) increased approximately 1,212% during Mr. Cooks tenure as CEO, significantly outpacing the S&P 500 which increased approximately 290% over the same time period, and Apple's market capitalization grew by more than $2 trillion.
More details in the full proxy statement linked below...
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In 2022, Cook had a target compensation of $84 million, although he ended up making around $99 million. For 2023, his target compensation is $49 million, consisting of a $3 million base salary, annual cash incentive of $6 million, and an equity award value of $40 million.
Apple says it reduced Cook's target compensation for 2023 due to shareholder feedback.
With input from the Board and the Compensation Committee's independent compensation consultant, the Compensation Committee makes CEO compensation decisions prior to the start of each fiscal year. In determining the appropriate amount of each compensation component for 2022, the Compensation Committee discussed numerous factors with the Board and its independent compensation consultant, including Mr. Cook's outstanding leadership, the immense scope and complexity of his role as Apple's CEO, the Board's confidence in his long-term strategic decisions, the Company's exceptional financial results delivered during 2021, shareholder feedback, and the value of his prior equity awards as compared to the value of his current outstanding equity awards. Balancing shareholder feedback, a desire to continue to create meaningful performance and retention incentives, and Mr. Cook's support for changes to his compensation to reflect the feedback received, the Compensation Committee maintained the cash components of Mr. Cook's 2023 compensation and reduced his target equity award grant value.
Apple also notes that as of the end of 2022, Apple's Relative TSR (total shareholder return) increased approximately 1,212% during Mr. Cooks tenure as CEO, significantly outpacing the S&P 500 which increased approximately 290% over the same time period, and Apple's market capitalization grew by more than $2 trillion.
More details in the full proxy statement linked below...
Read More