Apple Inc. cuts off CEO Tim Cook’s 40% of payout

New Delhi: Amid challenging worldwide business and economic conditions, Tim Cook, chief executive officer of Apple, has considered a 40% pay cut. The year before, Cook earned approximately $100 million.

In 2022, the 62-year-old received $99.4 million in payouts. This consisted of basic pay of $3 million, stock grants worth approximately $83 million, and incentives. Cook’s salary in 2022 was slightly higher than in 2021 – $98.7 million, or 1,447 times the average Apple wages and salaries.

Apple has now announced a significant reduction in Cook’s salary, reducing his wage to $49 million in 2023. The company quoted investor guidelines and Cook’s demand to customize his pay as the causes for the step. Cook’s recent salaries were rooted in balanced shareholder responses, Apple’s remarkable success, and a proposal from Cook, according to a statement on Thursday by the iPhone maker.

As a core component of his new compensation plan, the proportion of stock units granted to the Apple CEO and linked to the performance of the company will rise to 75% in 2023 from 50% in subsequent years.

Cooks’ desired compensation of $49 million contains the same $3 million salary and $6 million bonus just like in 2022, in addition to a $40 million equity grant value, which is roughly half of his equity grant value in 2022, which was $75 million.

Furthermore, Apple intends to place Cook’s yearly basis target remuneration for upcoming decades in between the 80th and 90th percentiles roughly comparable to our foremost peer group.

The Apple Chief exec has also pledged to donate his fortune to charitable causes. Cook stated his intention to contribute his fortune to charity more than 7 years ago, in 2015.