Tim Cook, chief government officer of Apple Inc., speaks throughout a “First Tool-In” ceremony on the TSMC facility underneath building in Phoenix, Arizona, on Tuesday, Dec. 6, 2022.
Caitlin O’Hara | Bloomberg | Getty Images
Apple CEO Tim Cook will obtain a pay reduce in 2023 to $49 million in whole compensation, the corporate stated in a submitting with the SEC.
Cook requested the change, Apple stated within the submitting, following a shareholder vote on his pay package deal. The firm additionally diminished the variety of restricted inventory models Cook would obtain if he retires earlier than 2026.
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In 2022, Cook made slightly below $83 million in inventory awards, $12 million in incentives, and $3 million in wage. He additionally acquired advantages together with retirement plan contributions, safety, private air journey, and over $46,000 in trip cash-out.
Apple’s compensation committee stated that it made the change in response to final yr’s say-on-pay vote, during which 64% of shareholders accredited of Cook’s compensation, down from 95% that accredited it for Apple’s 2020 fiscal yr.
Still, Apple’s board praised Cook’s efficiency, and stated it has confidence within the CEO’s long-term strategic selections.
Executive compensation has come underneath rising stress from institutional shareholders of late. Institutional Shareholder Services beneficial that Apple shareholders vote towards Cook’s pay package deal eventually yr’s annual assembly.
The compensation committee, comprised of Art Levinson, Al Gore, and Andrea Jung, stated it reached out to institutional shareholders to gauge how they felt about Cook’s pay.
“Based on these important conversations, we have made changes to the size and structure of Tim’s 2023 compensation,” the committee wrote.
More alterations could possibly be in retailer.
“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 stated.
Cook is paid principally in restricted inventory models. The variety of precise shares of Apple inventory that Cook vests will depend on Apple’s efficiency versus the S&P 500. Apple’s inventory has accomplished effectively sufficient that Cook sometimes vests the utmost quantity.
Since Cook took over as CEO in 2011, Apple inventory has returned 1,212% versus 290% for the S&P 500, Apple stated.
In addition to decreasing the entire goal, 75% of Cook’s vesting shares can be tied to Apple’s inventory efficiency in 2023, as an alternative of fifty%.
Apple introduced a inventory grant for Cook in September 2020 working by means of 2025. Cook acquired it on the primary day of Apple’s fiscal 2021, which began on the finish of September. When it was accredited, Cook’s inventory grant would have given him 1 million shares price about $114 million on the time if Apple had been to hit all its targets.
Cook’s earlier inventory grant from 2011 ended up being price greater than $900 million at Apple’s September 2020 share value.
Cook stated in 2015 that he plans to donate his fortune to charity.
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Source: www.cnbc.com”