Even CEOs aren’t resistant to robust financial occasions and discontented grumbling. Simply ask Apple’s Tim Prepare dinner, who simply agreed to present himself a 40% pay lower, given the fruit stand’s lackluster efficiency in 2022 and shareholder pushback.
Apple revealed Prepare dinner’s pay lower in a proxy assertion filed on Thursday with the Securities and Trade Fee forward of its first quarter monetary outcomes. The corporate defined that its compensation committee, which units govt compensation every fiscal yr, took under consideration shareholder suggestions, Apple’s efficiency in 2022, and “a suggestion from Mr. Prepare dinner to regulate his compensation in mild of the suggestions acquired.”
General, Apple accredited a $49 million complete pay goal for Prepare dinner in 2023, which features a $3 million base wage and $6 million bonus, facets unchanged from 2022. The change Prepare dinner’s wage was made in his inventory fairness awards, which have been decreased to $40 million this yr in comparison with $75 million in 2022.
The shareholder challenges to Prepare dinner’s compensation arose from Apple’s annual “Say on Pay” advisory vote, which lets shareholders weigh in on the salaries of the corporate’s executives, together with the CEO, CFO, basic counsel, head of individuals, and COO. In 2022, solely 64% of shareholders voted to approve the whole compensation for Apple’s executives in comparison with 95% in 2021, a notable year-over-year decline.
Shareholders who voted towards the corporate’s govt pay proposal constantly instructed Apple that they had an issue with Prepare dinner’s compensation, the corporate stated in its proxy assertion.
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The compensation committee also took into account Apple’s performance in 2022 when adjusting Cook’s pay. Although the company repeatedly called its own performance “exceptional,” Apple was not immune to the economic woes that befell its competitors and peers in the tech sector. The company’s stock fell by 27% in 2022, impacted by production challenges and the broader macroeconomic downturn.
Despite the pay cut, which appears to have been done to maintain goodwill between Apple and its shareholders, there was no absence of praise for Apple’s CEO in the company’s proxy statement. Apple frequently lauded Cook’s “outstanding leadership,” cited the board’s “confidence in his long-term strategic decisions,” and touted Apple’s “unparalleled success” under his leadership.
Don’t go feeling bad for Cook, now. He may be getting a pay cut, but he’s still a billionaire.