According to investor recommendations and Cook’s own request, Apple would reduce Chief Executive Officer Tim Cook’s pay by more than 40% to $49 million (approximately Rs. 399 crore) in 2023.
The business stated in a regulatory filing on Thursday that the percentage of stock units awarded to Cook and linked to Apple’s performance will grow to 75% in 2023 from 50%, as well as in future years, as part of the revisions. For the year 2022, Cook was paid $99.4 million (approximately Rs. 809 crore), which included a bonus, a base salary of $3 million (about Rs. 24 crore), and stock awards totaling about $83 million (nearly Rs. 675 crore). Compared to 2021, when his whole compensation was $98.7 million, that was a small increase (roughly Rs. 803 crore).
Apple stated in the filing that Cook’s most recent compensation was determined by “balanced shareholder feedback, Apple’s extraordinary performance, and a recommendation from Mr. Cook.” Additionally, according to Apple, the company intends to “place Mr. Cook’s annual target remuneration between the 80th and 90th percentiles relative to our key peer group for future years.”
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Apple has come under fire for Cook’s prior compensation package from organizations like Institutional Shareholder Services, but a majority of shareholders approved it last year. Leading consulting agency ISS expressed displeasure with Cook’s stock continuing to vest after retirement and the fact that only half of the rewards were based on performance indicators like the company’s share price.
The $49 million goal pay includes a $40 million equity award value in addition to the same $3 million salary and $6 million (approximately Rs. 48 crore) bonus as in 2022. (roughly Rs. 325 crore). In 2022, the value of his equity reward was $75 million (roughly Rs. 610 crore). Depending on how the company’s stock performs in 2023, Cook’s actual total remuneration may change.
Cook, 62, has promised to donate his money to good deeds. CEOs rarely suggest that their own remuneration be reduced. According to Bloomberg data, executive remuneration in 2021 reached a record high, reflecting the increasing opulence of pay packages.
However, such rewards are facing growing opposition from shareholders. According to Mercer, a record number of so-called “say-on-pay” votes were defeated in 2021, which might have been a reflection of shareholders’ dissatisfaction with how corporations handled the pandemic.
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Additionally, Apple revealed the 2022 salaries for Luca Maestri, general counsel Kate Adams, Deirdre O’Brien, head of retail, and Jeff Williams, CEO. All of those executives received compensation of around $27 million (about Rs. 219 crore) in 2022, a little rise from the year before. This sum included pay, shares, and bonuses.
The technological behemoth, based in Cupertino, California, recently disclosed that its annual shareholder meeting will be held digitally on March 10. Apple’s stock fell 27% last year, but that was less of a decrease than the Nasdaq Composite Index, which is heavily weighted toward technology. They have risen 2.7% so far this year.