Published: 2023-01-13 18:56
Last Updated: 2023-03-23 05:56
Apple’s Chief Executive Officer, Tim Cook, will get his annual pay package cut by a little over forty percent this year, based on his request following criticism from shareholders, as reported by the BBC Thursday.
The company’s compensation committee awarded Cook USD 49 million as "target compensation" for 2023.
Notably, the decision will not affect Cook's basic salary (USD 3 million) or bonus (up to USD 6 million), but it will affect the shares he would be awarded.
Last year, Apple gave Cook shares valued at USD 75 million, half of which depended on how well the company performed in the stock market.
This year, his stock award target has been dropped to USD 40 million, three quarters of which will depend on share performance.
A letter addressing investors, Institutional Shareholder Services (ISS) advised shareholders to vote against Cook's pay package, saying there are "significant concerns" over his package's "design and magnitude."
The letter mentioned that his pay was 1,447 times more than the salary of an average employee at the company.
In 2022, Apple’s shares dropped due to supply chain issues and a worldwide economic slowdown.