The world’s largest tech company announced that it would reduce its CEO Tim Cook’s target pay package to $49 million, which is approximately half of Cook’s total compensation of $99.4 million that he was granted last year and is 40% lower than his target pay for 2022.
About 75% of Cook’s 2022 compensation was tied to company shares, with half of that tied to how well the shares performed.
However, Cook’s pay package was rejected by shareholders after Apple’s stock dropped nearly 27% last year. Cook requested the reduction, according to the board’s compensation committee, despite the non-binding vote.
In its most recent annual proxy statement, the company stated,
“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,”
The executive’s share award goal has been reduced to $40 million this year. Three-quarters of that, or $30 million, is tied to how well shares perform.
According to the company, Cook will continue to receive a $6 million bonus in addition to a $3 million base salary.
Cook’s new pay package, according to the board, is “responsive to shareholder feedback, while continuing both to align pay with performance and to recognize Mr. Cook’s outstanding leadership,” according to the statement.
Forbes estimates that the tech boss, who has led Apple since 2011, has $1.7 billion in personal wealth.
As coronavirus lockdowns forced the closure of some of Apple’s factories in China last year, so did the share price of other tech companies. Its stock was also reduced as a result of supply chain bottlenecks and concerns that a global economic slowdown would reduce demand.
The tech giant was the first publicly traded company to reach a $3 trillion market capitalization in January of last year, but since then, it has lost nearly $1 billion of that value.