Apple Inc AAPL CEO Tim Cook is expected to take home a smaller pay package in 2023 compared with last year.
What Happened: Cook’s compensation is based on how shares of the company perform, and this year he’s expected to make a considerably smaller amount than in 2022.
Cook’s 2022 compensation came to $99.4 million, more than the $98.7 million he took home in 2021, according to a securities exchange filing.
In 2023, Apple has set a compensation target of $49 million for Cook with no change to his base salary of $3 million. He also receives a cash incentive of $6 million.
Screenshot From Apple’s Filing With The U.S. Securities And Exchange Commission
The biggest change in Cook’s salary is in the form of equity awards, which are down to $40 million in 2023 from $75 million last year.
See Also: Everything You Need To Know About Apple Stock
Why It Matters: Notably, $30 million of this year’s equity awards depend on Apple’s share performance, according to the award mix.
The numbers shared by Apple in the filing indicate that Cook is set to receive a 40% pay cut in 2023.
Since Cook became CEO in August 2011, Apple’s shares have returned 1,212% compared with 290% for the S&P 500, according to the Cupertino, California-based tech giant.
Apple said Cook recommended that his compensation be adjusted after taking shareholder feedback.
The iPhone maker’s compensation committee said that 64% of shareholders approved of Cook’s compensation last year, while 95% did so in the fiscal year 2020.
Last year, a prominent advisory firm urged investors to vote against Cook’s pay packet, which was 1,447 times larger than the average Apple employee.
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Image and article originally from www.benzinga.com. Read the original article here.