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Apple CEO Tim Cook to take pay cut: All you need to know

IFM_Apple CEO Tim Cook
Tim Cook received USD 75 million from Apple in stock awards for the fiscal 2022 period, of which 50% depended on the performance of Apple's stock

According to regulatory filings, Apple Inc Chief Executive Tim Cook’s compensation for the fiscal year 2023 is anticipated to be lower than in 2022. However, it will be more influenced by how well the shares of the iPhone manufacturer do compare to their market counterparts.

Compared to the USD 98.7 million he received the year before, Tim Cook’s salary for the fiscal 2022 year that ended in September was USD 99.4 million, according to the company’s financial filings.

In 2023, his total compensation will be USD 49 million, with a USD 3 million salary, USD 6 million cash incentive and USD 40 million in equity awards. So, going by mathematical calculations, he will take a more than 40% pay cut this year.

Apple said that in 2022 it sought feedback from shareholders about compensation and it received “overwhelming support for Mr Tim 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 Tim Cook as the primary reason for their voting decision,” the company said.

Although Apple made the modifications following 2022’s annual meeting, where 94.9% of shareholders had previously accepted Tim Cook’s compensation package, only 64% of shareholders did so.

Tim Cook’s stock awards underwent the most adjustment. He received USD 75 million from Apple in stock awards for the fiscal 2022 period, of which 50% depended on the performance of Apple’s stock. As a result, Tim Cook’s stock award target was decreased to USD 40 million for the fiscal 2023 period, with USD 30 million of the total contingents on share performance.

The USD 30 million in performance incentives may increase to at least USD 60 million if Apple’s shares reach predetermined performance levels.

Apple said its compensation committee took into account shareholder feedback, the company’s performance and a recommendation from Tim Cook, who was promoted to CEO in 2011, to adjust his compensation in light of the feedback received.

Tim Cook has received a USD 3 million base salary since 2019, but his total compensation, which includes the restricted awards, jumped from USD 14.8 million in 2020 to USD 98.7 million in 2021 and USD 99.4 million in 2022.

Apple said Tim Cook supported the changes to his compensation.

The company planned to position Tim Cook’s annual target compensation between the 80th and 90th percentiles relative to its primary peer group for future years, according to the filing. Apple will hold its annual meeting on March 10.

Meanwhile, in other news, Apple has reportedly released preview versions of its Music, TV, and Devices apps for Windows 11 on Microsoft Store, which will replace the Windows version of iTunes, which Apple previously made available in the Windows 10 Microsoft Store alongside iCloud for Windows.

According to GSMArena, Apple Music will support a Windows user’s local music library while also providing access to Apple Music’s paid service.

Apple TV will include original content as well as content from Paramount+, AMC+, Showtime, Starz, and other providers. Users can also rent new releases and view their iTunes purchases.

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