After earning $99.4 million in 2022, Apple CEO Tim Cook is expected to receive a massive pay reduction in 2023. The compensation that the Chief Executive is entitled to this year will be 40 percent less than what he received last year, and an interesting fact is that Cook was paid significantly more in 2021 than what he will receive this year; $98.4 million from two years ago.
Despite the 40 percent pay cut, Tim Cook was praised by Apple’s Compensation Committee, saying the technology giant displayed ‘exceptional performance’ in 2022
For 2023, Tim Cook will receive $49 million as compensation for his services. The breakdown of his pay was not provided in Apple’s Proxy Statement spotted by MacRumors, which states the following details.
“Mr. Cook’s 2023 target total compensation is $49 million, a reduction of over 40% from his 2022 target total compensation. 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.”
Here is what we do know. Apple’s CEO received a $3 million salary, around $83 million in stock awards, and $13.4 million in other compensation forms in 2022, so not all of the $49 million will be monetary. Despite the 40 percent pay reduction for 2023, Apple’s Compensation Committee said that under Cook’s leadership, the company witnessed ‘exceptional performance.’
Additional information states that the CEO’s percentage of performance-based RSUs (Restricted Stock Unit) granted to Cook increased from 50 percent to 75 percent as part of his 2023 target equity award. With the economic outlook looking bleak, Apple may not enjoy the same influx of revenue that it did in previous years, so Cook might be taking the cut to endure some overall cost reductions.
Apple will announce its next quarterly financial results in a few weeks, so we will have an idea of what to expect for the remainder of 2023. Stay tuned.
News Source: Apple Proxy Statement 2023