Apple CEO, Tim Cook, has announced that he will be taking a significant cut to his salary in 2023, according to a SEC Proxy Statement filing. The filing, which is an annual document that is released by the company, reveals that Cook will be receiving around 40% less in salary this year compared to last year. This equates to a reduction of several million dollars.
Cook’s decision to reduce his salary comes after criticism from shareholders regarding the high level of his compensation. In the past, consulting firm, Institutional Shareholder Services, has urged shareholders to vote against Cook’s salary package, citing concerns about the amount and structure of his stock bonus. The firm argued that “half of the compensation lacks performance criteria.”
This reduction in Cook’s salary reflects a changing attitude towards executive compensation in recent years. Shareholders are increasingly looking for more transparency and accountability when it comes to how much top executives are paid. Cook’s decision to take a pay cut could set an example for other CEOs in the industry.
According to the SEC Proxy Statement filing, Cook’s total salary for 2023 is now set at $49 million, $35 million less than in 2022. His basic salary remains at $3 million and his annual cash incentive remains unchanged at $6 million. The value of his stock allocations has also been reduced, dropping from $75 million in 2022 to $40 million this year. Additionally, there are reductions in other bonuses, which could result in his income being halved overall.
In the past, Cook’s salary package has been supported by shareholders, with 64% of those who voted last year approving the compensation proposals of the executives. However, with a growing emphasis on sustainability and social responsibility, it seems that shareholders are now more focused on how companies are using their resources and are looking for more responsible business practices.
Overall, Cook’s decision to reduce his salary, as per the SEC proxy statement filing, highlights the changing attitudes towards executive compensation and the increasing demand for transparency and accountability from shareholders. It’s a move that could encourage other CEOs to follow suit and could ultimately lead to a more equitable distribution of resources within companies.
