Apple CEO Tim Cook takes 40% salary cut

“Mr. Cook’s 2023 target total compensation is $49 million, a reduction of over 40 percent 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 80^th and 90^th percentiles relative to our primary peer group for future years,” the filing read.

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The decision was made based on shareholder feedback and a suggestion from Cook himself, supposedly with consideration to align pay with performance.

Cook’s total target compensation in 2022 was $84 million which includes a base salary of $3 million, annual cash incentive of $6 million and an equity award value of $75 million which was 50 percent performance-based vesting and 50 percent time-based vesting.

The new total target compensation for 2023 stands at $49 million with no change in the base salary or annual cash incentive, the change was implemented in the equity award value which is now 75 percent performance-based vesting and 25 percent time-based vesting.

“The majority of Mr. Cook’s compensation has been delivered through long-term equity awards since his promotion to CEO in 2011. The equity awards he has received over time align with Apple’s growth and success and the tremendous value delivered to our shareholders under his leadership. As of the end of 2022, Apple’s Relative TSR increased approximately 1,212 percent during Mr. Cook’s tenure as CEO, significantly outpacing the S&P 500 which increased approximately 290 percent over the same time period, and Apple’s market capitalization grew by more than $2 trillion,” the filing explained.

Cook has tenure with Apple for 24 years and has currently served the role for 11 years.