Apple boss Tim Cook is taking a 40% pay cut -- at his own request

[midian182]

In a nutshell: We're used to hearing about megacompany CEOs receiving obscene pay rises in times of economic hardship and job cuts, but Tim Cook is bucking the trend. The Apple boss will receive around 40% less in 2023 compared to what he was paid last year, and the decision partly comes from Cook's own recommendation. That doesn't mean he'll be searching for discount coupons in newspapers: Cook is still likely to earn more than $49 million this year.

Cook's pay reduction comes after the Say-on-Pay vote held at Apple's annual advisory meeting for shareholders in 2022. Just 64% of votes relating to compensation for executives were in favor of execs retaining their 2021 pay packages. That marked a drastic decline compared to the 94.9% of in-favor votes recorded a year earlier.

Despite the majority of shareholders voting in favor, Apple took the Say-on-Pay's declining support into consideration when calculating Cook's compensation for 2023. It also took on board the CEO's own recommendation "to adjust his compensation in light of feedback received."

Cook's target compensation for 2023 is $49 million, a decline of $35 million compared to last year. His $3 million base salary and $6 million bonus remains unchanged, but his equity award value falls from $75 million to $40 million. Moreover, his equity award is 75% performance and 25% time-based vesting, whereas last year's split was 50/50.

No wonder he's always smiling

Bloomberg writes that Cook made $99.4 million last year, $15.4 million more than his target salary for 2022, so he's likely to finish the year with more than $49 million.

Cook became a billionaire in 2020 and is now estimated to be worth $1.7 billion. That's good news for the causes who will benefit from his joining the Giving Pledge in 2015, when he promised to give his wealth away to charities.

9to5Mac reports that in addition to paying his compensation, Apple spent $591,196 in security expenses for Cook last year, which covered personal security services. It also spent $767,319 on air travel expenses, including hourly charges for the use of a private aircraft (Apple requires he uses one for security and efficiency reasons), fuel charges, departure fees, and landing fees.

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https://www.techspot.com/news/97263-apple-boss-tim-cook-taking-40-pay-cut.html

 

[Watzupken]

All these supposed pay cuts are very shady. Sure, cut my pay by 40%, but give me in bonus. Net effect is the same. And who determines bonus? Isn't it the same person in the management team?

 

[netman]

At least we now know he is not greedy for year 2023 unlike 99.99% of other CEOs...!

 

[ScottSoapbox]

Equity pay should be 100% performance based. He’s already getting $9M for showing up.

This is basic corp governance to create inventive alignment with the investors.

 

[nnguy2]

Good for Tim Apple.

 

[Kashim]

At least we now know he is not greedy for year 2023 unlike 99.99% of other CEOs...!

That's cute, that you actually believe that. This is a PR stunt and nothing more.

 

[wiyosaya]

Another empty gesture from the tech elite. I see this as more of a PR move for Cook. Translation: "Hey world, look at me!!! I'm taking a pay cut!! I'm sure everyone in the world will agree that I'm such a good guy!"

 

[waclark]

All these supposed pay cuts are very shady. Sure, cut my pay by 40%, but give me in bonus. Net effect is the same. And who determines bonus? Isn't it the same person in the management team?

The Board of Directors determines the bonus, most likely based on measurable statistics. 75% is tied to performance and that is either stock price or some measure of sales revenue. The remaining 25% is time based, meaning he gets $X after being with the company Y months.

 

[waclark]

All these supposed pay cuts are very shady. Sure, cut my pay by 40%, but give me in bonus. Net effect is the same. And who determines bonus? Isn't it the same person in the management team?

Actually, it's his bonus that is being cut, not his base pay.

 

[Carlos GarPov]

Soooo that means that someone is getting a wire transfer to a bank account in Panama! Great

 

[OortCloud]

What a guy! Maybe he can donate some of his remining money to the families of all the people who commit suicide in his sweat shops in China?

 

[error1984]

Geez 250k$ would be enough to the rest of my life. god dammit life is crap

 

[psycros]

He's only obscenely rich because stupid people buy expensive things they don't need.

 

[thelatestmodel]

He's only obscenely rich because stupid people buy expensive things they don't need.

No, he is obscenely rich because he, like all CEOs, takes far more money than he deserves from the revenue produced by the workforce, while paying nowhere near enough tax.

 

[PEnnn]

Hey, give me the same salary, bonuses, incentives, expense accounts, company cars, private jets, housing allotments, etc that he received since he took over and I will accept a 99% pay cut effective immediately!!

 

[OortCloud]

No, he is obscenely rich because he, like all CEOs, takes far more money than he deserves from the revenue produced by the workforce, while paying nowhere near enough tax.

Like most CEOs in big companies, he's sleazed and slithered his way up the slippery pole because he's desperate to be the 'big man'. Generally in my experience these sorts of 'leaders' would f*** over their own mother if it got them one more step up the ladder.

 

[Lounds]

Steve Jobs created the foundation for this man's success.

 

[Burty117]

Actually, it's his bonus that is being cut, not his base pay.

I'll just paste it from the article:

His $3 million base salary and $6 million bonus remains unchanged, but his equity award value falls from $75 million to $40 million. Moreover, his equity award is 75% performance and 25% time-based vesting, whereas last year's split was 50/50.

 

[MSIGamer]

Steve Jobs created the foundation for this man's success.

Indeed, Tim Apple is anything but inspirational.

 

[Hodor]

Oh no. Poor man. Let's organize a charity party to collect some money for the poor creature.

 

[VitalyT]

Probably ran out of space to stash it...

 

[m3diapers]

All these supposed pay cuts are very shady. Sure, cut my pay by 40%, but give me in bonus. Net effect is the same. And who determines bonus? Isn't it the same person in the management team?

bonus is taxable, at least mine is, but, at his pay level, the pay cut actually saves him tax, may even increase his post tax income. people like him doesn't contribute to the society at all

 

[NumberSix]

He's probably earning more as a Paul O'Grady tribute anyway.

 

[DixieFatline]

Great. Why not use that money to give some people on the street a chance at a steady job with steady pay?

 

[ZedRM]

Tim Cook, doesn't need a pay cut. He needs to retire and leave Apple.