Apple CEO Tim Cook takes 40% pay cut for FY 2023

The tech giant cited investor guidance and a request from Cook himself to adjust his pay.

Cook’s pay package for the fiscal year 2023 will also depend on how well Apple’s shares perform relative to market peers, regulatory filings showed.

The $49 million compensation includes the same $3 million base salary and $6 million bonus as 2022, as well as an equity award value of $40 million, against $75 million in 2022.

Cook’s actual total compensation for 2023 could fluctuate based on the company’s stock performance.

Stock units to increase

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As part of the changes, the percentage of stock units awarded to Cook and tied to Apple’s performance will increase from 50% to 75% in 2023, as well as in future years, the company said in a regulatory filing.

Cook’s compensation for fiscal year 2022, ended September, was $99.4 million, slightly higher than the $98.7 million he received the previous year, according to media reports, citing the company’s securities filings.

The Apple chief’s latest pay was based on “balanced shareholder feedback, Apple’s exceptional performance and a recommendation from Cook,” the company said in the filing.

The company also plans to “position Cook’s annual target compensation between the 80th and 90th percentiles relative to our primary peer group for future years,” Apple said.

Cook’s package criticised

Apple has drawn criticism from groups such as Institutional Shareholder Services about Cook’s previous compensation package, but a majority of shareholders voted to approve it last year.

ISS, a top advisory firm, complained that Cook’s stock would continue to vest post-retirement and that half of the rewards didn’t depend on performance criteria such as the company’s share price.

Cook, who has served as CEO since 2011, has pledged to give away his wealth to charitable causes.

The tech giant also announced that its annual shareholder meeting will take place virtually, on March 10.