West News Wire: Apple CEO Tim Cook will receive a pay reduction of more than 40% from the previous year as a result of changes made to the way his remuneration is determined, some of which were suggested by Cook himself.
In a late-Thursday regulatory filing, Apple Inc. stated that Cook’s target total remuneration for 2023 is $49 million, consisting of a $3 million salary, a $6 million cash incentive, and a $40 million equity reward.
The Cupertino, California-based corporation held an advisory shareholder vote on CEO compensation in March of last year, with 6.21 billion shares voting in favor of the package and 3.44 billion shares voting against it. Additionally, there were broker non-votes and abstentions.
Apple claimed that its remuneration committee considered shareholder comments, the company’s success, and a proposal from Cook, who was promoted to CEO in 2011, to adjust his compensation in light of the feedback received.
Apple said last year it sought feedback from shareholders about compensation and it received “overwhelming support for Mr. Cook’s exceptional leadership and the unprecedented value he has delivered for shareholders. Those shareholders we spoke with that did not support our 2022 Say on Pay proposal consistently cited the size and structure of the 2021 and 2022 equity awards granted to Mr Cook as the primary reason for their voting decision,” the company said.
Cook has received a $3m base salary for the past three years, but his total compensation – which includes the restricted awards – jumped from $14.8m in 2020 to $98.7m in 2021 and $99.4m in 2022.
Apple said Cook supported the changes to his compensation.
The company planned to position Cook’s annual target compensation between the 80th and 90th percentiles relative to its primary peer group for future years, according to the filing.
The company will hold its annual meeting on March 10.
In midday trading, Apple shares edged down to $133. The stock has declined about 23 percent in the past year.