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Don’t feel too bad for Apple CEO Tim Cook, who voluntarily took a 40% compensation decrease this year in reaction to shareholder anger over his 2022 remuneration.
In 2023, Cook, whose net worth was estimated by Forbes to be approximately $1.7 billion, will earn a total of $49 million, according documents filed with the Securities and Exchange Commission.
His income was decreased in response to Apple shareholders’ criticism of his prior $98.7 million yearly salary, which was more than 1,447 times the average pay for a worker at the company.
Compared to the 95% voter approval for fiscal year 2020, only 64% of Apple shareholders last year approved of Cook’s remuneration.
Due to the scale of Mr. Cook’s 2021 and 2022 equity awards, Apple shareholders “raised concern over the amount of Mr. Cook’s total target pay,” according to the SEC filing.
Investors expressed a “desire for a bigger percentage of Mr. Cook’s shares to be performance-based” in the Cupertino, California-based iPhone manufacturer.
In the previous year, the performance of Apple stock was correlated with 50% of Cook’s vesting shares. According to a filing with the SEC, that percentage will increase to 75% this year.
On Friday morning, Apple stock was trading at roughly the same level on the Nasdaq. The $2.13 trillion firm, whose stock price dropped by more than 22% over the past year, was not immune to the severe economic environment.
In the more than ten years since Cook succeeded the late visionary co-founder Steve Jobs as CEO, investors have continued to reap rewards.
Apple stock has produced a ROI of 1,212% since 2011, which is roughly six times the rate of the S&P 500 index.
According to the SEC filing, the Apple CEO will make a $3 million basic pay, $6 million in cash incentives, and $40 million in stock rewards in 2023.
Cook’s pay in 2023 will be more closely correlated with the company’s stock performance than it was in previous years.
An advisory firm encouraged shareholders to reject Cook’s roughly nine-figure 2022 compensation last February.
One of the main firms that provides stockholders with voting advice, Institutional Shareholders Service, raised “serious concern” with Cook’s $82 million in stock awards for 2021.
In addition to a $12 million cash bonus and a $3 million basic pay, that was given.
Additionally, Cook racked up costs totaling $630,000 for private security and $700,000 for private jet travel.
A Virginia woman who traveled across the country to the Apple CEO’s Bay Area home last year was issued a restraining order by a California judge after she had given him letters and pictures of a loaded gun for more than a year, claiming to be the mother of his twins.
What do you think of that situation with Tim Cook salary? Please let us know in the comments.