Apple's Chief Executive Officer Tim Cook's pay package for the fiscal 2023 year is expected to be smaller than last year. According to the latest regulatory filings, more components of his salary are dependent on how well the company stock performs in the market.
For 2023, Cook's compensation target is set at $49 million, according to SEC filings by the company. It is more than 40 per cent lower than his 2022 pay, which for the fiscal year 2022 ending September was $99.4 million.
Apple decided to make the changes after its annual shareholder's meeting where 64 per cent approved Cook's reduced pay package. The number of restricted stock units Cook would receive if he retires before 2026 has also been reduced.
According to Apple, Cook actually requested the change himself.
A compensation committee comprising of Art Levinson, Al Gore, and Andrea Jung said, “Taking into consideration Apple’s comparative size, scope, and performance, the Compensation Committee also intends to position Mr Cook’s annual target compensation between the 80th and 90th percentiles relative to our primary peer group for future years.” The committee makes decisions on compensations after discussions with institutional shareholders.
Apple also commended Cook for his steady performance since he took over Steve Jobs as CEO in 2011. He joined Apple in 1998 as Senior Vice President for Worldwide Operations and was responsible for the company's supply chain and operations. He played a key role in the company's resurgence in the 2000s, helping to improve the efficiency and speed of product development and manufacturing.
Under Cook’s leadership, Apple’s stock has made a return of 1,212 per cent compared to 290 per cent for the S&P 500.
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