Apple CEO Agrees to 40% Pay Cut After Shareholder Revolt.. How Much Is It?

Dubai, United Arab Emirates - Tim Cook, the CEO of Apple, the world's largest technology company, has agreed to reduce his salary by 40% following a shareholder revolt. Apple stated in a statement that it will lower the targeted salary package for its CEO to $49 million, which is 40% less than his targeted pay in 2022 and about half of what Cook received last year from his total base salary, stock grants, and incentives, which amounted to $99.4 million.

The majority of Cook's total compensation, about 75% for 2022, was tied to the company's stock, with half of it depending on stock price performance. However, shareholders voted against Tim Cook's total compensation package after Apple’s stock fell by about 27% last year. While the vote is non-binding, the board's compensation committee stated that it took the vote into consideration.

The company said in a statement: "The compensation committee balanced shareholder guidance, Apple's exceptional performance, and Cook's recommendation to adjust his total pay in light of the received guidance." This year, the stock grant for the CEO has been reduced to $40 million.

About $30 million, or three-quarters of that amount, is tied to stock price performance. The company stated that Cook's base salary of $3 million will remain unchanged, along with a bonus of $6 million.

The board believes that the new compensation package for Tim Cook is "responsive to shareholder guidance, while continuing to align pay with performance and recognizing Cook's outstanding leadership." According to Forbes magazine, the Apple CEO since 2011 is estimated to have a personal fortune of $1.7 billion.