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Apple CEO Tim Cook Takes 40 Percent Pay Cut, Will Earn $49 Million

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Apple is chopping Chief Govt Officer Tim Prepare dinner’s compensation by greater than 40 % to $49 million (roughly Rs. 399 crore) in 2023, citing investor steering and a request from Prepare dinner himself to regulate his pay.

As a part of the adjustments, the proportion of inventory models awarded to Prepare dinner and tied to Apple’s efficiency will enhance to 75 % in 2023 from 50 %, in addition to in future years, the corporate mentioned in a regulatory submitting Thursday. For 2022, Prepare dinner acquired compensation of $99.four million (roughly Rs. 809 crore), together with $three million (roughly Rs. 24 crore) in base wage, about $83 million (roughly Rs. 675 crore) in inventory awards and a bonus. That was up barely from 2021, when his complete pay package deal was $98.7 million (roughly Rs. 803 crore).

Prepare dinner’s newest pay was primarily based on “balanced shareholder suggestions, Apple’s distinctive efficiency and a advice from Mr. Prepare dinner,” the iPhone maker mentioned within the submitting. The corporate additionally plans to “place Mr. Prepare dinner’s annual goal compensation between the 80th and 90th percentiles relative to our major peer group for future years,” Apple mentioned.

Apple has drawn criticism from teams resembling Institutional Shareholder Providers about Prepare dinner’s earlier compensation package deal, however a majority of shareholders voted to approve it final yr. ISS, a prime advisory agency, complained that Prepare dinner’s inventory would proceed to vest post-retirement and that half of the rewards did not rely on efficiency standards like the corporate’s share worth.

The $49 million in goal compensation contains the identical $three million wage and $6 million (roughly Rs. 48 crore) bonus as in 2022, in addition to an fairness award worth of $40 million (roughly Rs. 325 crore). His fairness award worth in 2022 was $75 million (roughly Rs. 610 crore). Prepare dinner’s precise complete compensation for 2023 might fluctuate primarily based on the corporate’s inventory efficiency.

Prepare dinner, 62, has pledged to provide away his wealth to charitable causes.

It is uncommon for CEOs to advocate their very own compensation be docked. Pay packages have gotten more and more lavish, and 2021 was a document yr for govt compensation, in keeping with Bloomberg information.

However shareholders have more and more pushed again on such packages. A document variety of so-called say-on-pay votes failed in 2021, which can have mirrored shareholders’ frustrations with how corporations carried out in the course of the pandemic, in keeping with Mercer.

Apple additionally disclosed 2022 compensation for Chief Monetary Officer Luca Maestri, Common Counsel Kate Adams, retail chief Deirdre O’Brien and Chief Working Officer Jeff Williams. These executives had been all paid about $27 million (roughly Rs. 219 crore) — together with wage, inventory and a bonus — in 2022, slight will increase from the earlier yr.

The Cupertino, California-based know-how large additionally introduced that its annual shareholder assembly will happen just about on March 10.

Apple shares declined 27 % final yr, although that was much less of a drop than the one suffered by the tech-heavy Nasdaq Composite Index. They’ve climbed 2.7 % to this point this yr.

© 2023 Bloomberg LP

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