Following shareholder opposition, Apple CEO Tim Cook advised the company to reduce his compensation this year.
The world’s largest tech company said it would cut Cook’s target pay to $49 million, which is about half of the $99.4 million he was given last year and 40% less than his target pay for 2022.
About 75% of Cook’s 2022 compensation was tied to company shares, with half of that tied to how well the shares performed.
However, Cook’s pay package was rejected by shareholders after Apple’s stock dropped nearly 27% last year. Cook requested the reduction, according to the board’s compensation committee, despite the non-binding vote.
In its annual proxy statement, which was made public on Thursday, the business stated, “The compensation committee balanced shareholder feedback, Apple’s exceptional performance, and a recommendation from Mr. Cook to adjust his compensation in light of the feedback received.”
The executive’s share award goal has been reduced to $40 million this year. Three-quarters of that, or $30 million, is tied to how well shares perform.
According to the company, Cook will continue to receive a $6 million bonus in addition to a $3 million base salary.
Cook’s new pay package, according to the board, is “responsive to shareholder feedback, while continuing both to align pay with performance and to recognize Mr. Cook’s outstanding leadership,” according to the statement.
Forbes estimates that the tech boss, who has led Apple since 2011, has $1.7 billion in personal wealth.
As coronavirus lockdowns forced the closure of some of Apple’s factories in China last year, so did the share price of other tech companies. Its stock was also reduced as a result of supply chain bottlenecks and concerns that a global economic slowdown would reduce demand.
The tech giant was the first publicly traded company to reach a $3 trillion market capitalization in January of last year, but since then, it has lost nearly $1 billion of that value.