Apple revealed CEO Tim Cook’s target pay package would be reduced by more than 40 per cent subject to shareholder approval, following feedback from investors on the executive’s compensation.
In an SEC filing the company noted Cook had himself recommended the change in light of comments from shareholders received by Apple’s compensation committee.
Assuming the proposal is approved at the tech giant’s upcoming AGM, Cook’s base pay and standard bonus level will remain flat at $3 million and $6 million per annum respectively.
Changes come in the equity allocation part of his package with the “total target compensation” proposed at $49 million for its current fiscal year 2023 compared to $84 million in fiscal 2022, the year ended 24 September 2022.
Apple’s figures for the year show Cook was actually awarded more than this target with $99.4 million received, including in equity.
Outlining feedback from investors received, the committee noted there was “overwhelming support” for Cook and strong backing for the “philosophy, structure and pay for performance alignment of our executive compensation programme, including cash components”.
However, it pointed to criticism on the scale and composition of the equity component of the chief’s package.