Tim Cook, Apple CEO, agrees to 40% target pay cut


London
CNN
,

Apple CEO Tim Cook recommended that the company cut his pay this year after a shareholder revolt.

The world’s biggest tech company said it will slash Cook’s target pay package to $49 million, a 40% drop from his target salary for 2022 and nearly half of Cook’s $99.4 million total compensation he received last year. was given.

The majority of Cook’s 2022 compensation — about 75% — was tied to company shares, with half of that dependent on share price performance.

But after Apple’s stock plunged nearly 27% last year, shareholders voted against Cook’s pay package. The vote is non-binding, but the board’s compensation committee said Cook has requested a cut.

“The Compensation Committee balanced the recommendation for Mr. Cook to adjust his compensation in light of shareholder feedback, Apple’s exceptional performance and the feedback received,” the company said in its annual proxy statement released Thursday.

This year, the executive share award target has been reduced to $40 million. About $30 million, or three-quarters, is tied to share price performance.

The company said Cook’s base salary will be $3 million plus a $6 million bonus.

The board said it believes Cook’s new pay package is “responsive to shareholder feedback, while continuing to align pay with performance and recognizing Mr. Cook’s outstanding leadership.”

The tech boss, who has led Apple since 2011, is estimated to have a personal net worth of $1.7 billion, according to Forbes.

Like other tech companies, Apple’s share price plummeted last year as the coronavirus lockdown closed some of its factories in China. Supply chain bottlenecks and fears that a global economic downturn would dampen demand also dragged its stock down.

In January last year, the tech giant became the first publicly traded company to hit a market capitalization of $3 trillion, yet has shed nearly $1 billion of that value.

Source link

Leave a Comment