Tim Cook is getting paid around 40 percent lower than last year, according to the annual proxy statement (PDF) Apple has released — and the CEO himself recommended it. Apparently, at the tech giant’s annual shareholder advisory meeting, 2022, only 64 per cent of the “Say on Pay” votes on compensation proposals for executive were in favor keeping their 2021 pay packages. It’s still the majority of votes but it is a significant decrease in approval year-over. 9to5Mac reports that 94.9 per cent of shareholders voted for the compensation proposals of executives in the previous year. 

Apple’s Compensation Committee considered the Say on Pay voting results, as well as Tim Cook’s recommendation to “adjust his compensation in light feedback received” to determine this year’s pay packages. Cook’s 2023 target salary is $49million, which is $35 million less than his 2022 target salary. Cook’s base salary is still $3million and his annual cash incentive is $6 million. However, his equity award value increased from $75 million to $40 million in 2022 to $40million this year. Additionally, he was awarded an equity award that is 75 percent performance-based and 25 percent time-based vesting. 

Cook, who pledged to give his fortune to charity several years ago, will likely make more than $49million this year thanks to stock awards and bonuses. Bloomberg reports that Cook earned $99.4million in 2022, $15.4 million more than his target salary. His total pay package was $98.7million in 2021. Institutional Shareholder Services, an advisory firm, has previously called on shareholders to vote against Cook’s pay package. They were concerned about the size of his equity award and its structure. The firm previously stated that half of the award did not meet performance criteria. This shift in Cook’s compensation may reflect a changing attitude to executive pay. It is not unusual for an executive at his level to suggest that their own pay be cut. 

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