Apple Inc (NASDAQ):AAPL’s chief executive officer Tim Cook will be facing a 40% pay cut. This is due to a reduction in his share-based bonus and “equity rewards value”.
Cook has been with Apple for 24 years, and has been the head of the company for 11 years. He will be paid a base salary US$3mln, which is unchanged since 2016.
In addition, the tech giant will pay US$6mln annually in cash incentives, which is unchanged from last year.
The “equity rewards system”, which saw the CEO receive US$75mln worth of shares last year, has been reduced to US$40mln.
According to Apple’s independent consultation panel, the decision was based on “Balancing shareholder input, a desire for continued to create meaningful performance incentives and retention incentives, as well as Mr Cook’s support to changes.”
The report stated that the Compensation Committee “maintained the cash components of Mr Cook’s 2023 compensation” and decreased his target equity award grant price.
California-based company has seen its share price fall by more than 22% over the past year. This is around 8% less than the S&P 500.
Cook will receive 300,000. Shares are still available for purchase if the price remains at US$133.
Cook would have received approximately 430,000 shares if the stock had been valued at US$172 last year.
Apple also stated that four Apple executives, including chief financial officer Luca Maestri (and chief operating officer Jeff Williams), earned US$22 million in 2022.