Apple CEO Tim Cook dinner will voluntarily take a pay lower this 12 months, if shareholders approve on the upcoming Apple Investor Day held on March 10.
Cook dinner’s diminished compensation is one in every of a number of proposals put forth in a proxy assertion for shareholders forward of Investor Day. It notes that Apple’s CEO helps the transfer to drop his mixed wage and anticipated compensation to $49 million in 2023, down from $99 million final 12 months. Apart from $9 million in base wage and money incentives, the remainder of that compensation is in fairness that is tied to efficiency — Cook dinner really made $15 million above his goal pay in 2022 given how effectively the corporate did in gross sales and earnings.
A number of members of Apple’s board type a Compensation Committee that decides govt pay, and based on the proxy assertion, they proposed this pay lower partially in response to shareholder suggestions. This comes within the type of a yearly vote on the annual investor assembly, internally referred to as Say on Pay, which asks shareholders whether or not they agree with how a lot executives, primarily Cook dinner, are compensated — which plummeted final 12 months to 64% approval, down from practically 95% in 2021.
Finally, this pay lower looks as if a course correction to mirror the opinions of shareholders, who had been high quality paying Cook dinner extra in earlier years. Apple has weathered the pandemic and provide chain shortages effectively, and on the time shareholders expressed decrease confidence, the corporate had simply reported file revenues up 11% within the first quarter of 2022. However because the just-released proxy doc famous, Cook dinner’s $99 million compensation was 1,177 occasions the $84,493 wage of Apple’s median worker.