Tim Cook's pay cut: Apple CEO slashes his own salary by 40% for this year

Mr.Cook’s 2023 target total compensation is $49 million, a reduction of over 40% from his 2022 target total compensation, as per Apple's regulatory filing.

Apple to cut Tim Cook salary by 40% this year.

New Delhi: Apple has announced in the regulatory filing to cut its CEO Tim Cook salary by 40% this year from the last year after adjusting how it calculates his compensation. Interestingly, these are partly based on the recommendations made by Tim Cook himself. “Mr.Cook’s 2023 target total compensation is $49 million, a reduction of over 40% from his 2022 target total compensation,” according to the Apple regulatory filing.

However, the company has increased the percentage of performance-based RSUs granted to Mr.Cook  from 50% to 75% of his 2023 target equity award.

The company gives Cook’s salary mostly in restricted stock units. The number of actual shares of Apple stock that Cook vests depends on the company’s performance versus the S&P 500. Apple’s stock has done well enough that Cook typically vests the maximum amount.

The compensation committee on Apple's board acebalanced shareholder feedback, Apple's exceptional performance, and a recommendation from Mr. Cook to adjust his compensation in light of the feedback received," read the SEC filing."Cook actually made $99.4 million in 2022, according to the filing," the report said.Amid iPhone production challenges in China owing to Covid-related disruptions, Apple's market cap has dropped $1 trillion from its peak a year ago.

Like many other tech companies, Apple has been hit by supply chain issues.Its manufacturing in China has taken a hit due to a fresh wave of Covid infections in the only major economy combating such a crisis.

While Apple's market value has declined significantly, other major technology companies have experienced steeper percentage declines.Amazon and Facebook-parent Meta's shares have fallen by about 50 per cent and 63 per cent, respectively, over the past year, said the report.

(Inputs from IANS)