Apple CEO Tim Cook is set to see his pay fall by 40% this year compared to last, according to a Schedule 14A filed with the U.S. Securities and Exchange Commission. The document says that Tim Cook’s 2023 target total compensation is $49 million, that’s 40% down from the 2022 target total compensation.
“The Compensation Committee balanced shareholder feedback, Apple’s exceptional performance, and a recommendation from Mr Cook to adjust his compensation in light of the feedback received,” Apple wrote in the filing. “The Compensation Committee then approved the target annual compensation of our named executive officers for 2023, including the following changes to CEO compensation, which Mr Cook supported, and that the Compensation Committee believes are responsive to shareholder feedback, while continuing both to align pay with performance and to recognize Mr Cook’s outstanding leadership.”
While Cook’s target compensation is falling from $84 million to $49 million, there will be no change to his $3 million base pay, nor his $6 million annual cash incentive. Instead, his equity award value will fall from $75 million to $40 million and the award mix (performance-based, time-based) will move from 50/50 to 75/25.
Despite the $84 million target compensation mentioned earlier, the total compensation paid out to the Apple CEO totalled $99.4 million in 2022, when factoring in things like air travel and security. In the same year, the median 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 be earning each year, it’s worth noting how much Apple’s worth has increased since Cook took over from Steve Jobs. In the last five years alone the price of Apple’s shares has increased by 198.99% and that’s despite a pullback over the course of 2022. When Cook took over, Apple’s shares were in the low double digits but now they sit at $133. He’s likely to be doing something right at the head of the company and arguably deserves the pay he gets.