New Delhi: Apple has announced in a regulatory filing to cut its CEO Tim Cook’s pay by 40% this year compared to last year, after adjusting how it calculates his compensation. Interestingly, these are partly based on recommendations made by Tim Cook himself. According to an Apple regulatory filing, “Mr. Cook’s 2023 target total compensation is $49 million, a more than 40% reduction from his 2022 total compensation.”
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However, the company increased the percentage of performance-based RSUs granted to Mr. Cook from 50% to 75% of his 2023 target equity award.
The company pays Cook’s salary mostly in restricted stock units. The actual number of shares of Apple stock vested by Cook depends on the company’s performance compared to the S&P 500. Apple’s stock has performed so well that Cook typically vests the maximum amount.
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The Compensation Committee on Apple’s board forwarded Mr. Cook’s recommendation to adjust his compensation in light of shareholder feedback, Apple’s exceptional performance, and the feedback received,” read the SEC filing. filing,” the report said. Apple’s market cap has fallen $1 trillion from its peak a year ago due to Covid-related disruptions amid iPhone production challenges in China.
Like many other tech companies, Apple has been hit by supply chain issues. Its manufacturing in China has been affected due to a fresh wave of Covid infections in the only major economy facing such a crisis.
While Apple’s market value declined significantly, other major technology companies experienced sharp percentage declines. The report said shares of Amazon and Facebook-parent Meta declined by 50 percent and 63 percent, respectively.
(Inputs from IANS)