According to a Schedule 14A filed with the US Securities and Exchange Commission, Apple CEO Tim Cook’s salary will be cut by 40% this year compared to last year. Tim Cook’s 2023 target total compensation is $49 million, down 40 percent from his 2022 target total compensation, the document said.
“The compensation committee balanced a recommendation to adjust his compensation in light of shareholder feedback, Apple’s exceptional performance, and feedback received from Mr. Cook,” Apple wrote in the filing. “The compensation committee then approved the target annual compensation for our named executive officers for 2023, including the following changes to CEO compensation, which Mr. Cook supported, and that The Compensation Committee believes it is responsive to shareholder feedback, while continuing to align pay with both performance and in recognition of Mr. Cook’s outstanding leadership.
While Cook’s target compensation is dropping from $84 million to $49 million, his $3 million base salary will remain unchanged, nor will his $6 million annual cash incentive. Instead, the value of his equity awards will drop from $75 million to $40 million and the award mix (performance-based, time-based) will go from 50/50 to 75/25.
Despite the $84 million target compensation mentioned earlier, the Apple CEO was paid a total of $99.4 million in 2022, when things like air travel and security were taken into account. That same year, the average compensation for Apple employees was $84,493, so Cook’s pay ratio was 1,177 to 1, according to the document.
While some may argue that this is an obscene amount of money to make each year, it’s worth considering how much Apple’s worth has grown since Cook took over from Steve Jobs. Apple’s share price has increased 198.99% in the last five years alone and this is despite a return during 2022. Apple shares were in the low double digits when Cook took over but now sit at $133. He is likely doing something right at the helm of the company and deserves the salary he gets.