Apple CEO Tim Cook will reportedly receive a decrease in his current compensation in the company.
According to the proposal submitted by the company's Compensation Committee, the tech boss could likely get $49 million in 2023, which is smaller than his $99 pay.
While the new changes are attributed to the overall performance of the tech titan, the business tycoon has agreed with the pay cut for some reasons.
Apple Tim Cook to Receive Massive Pay Cut
BEVERLY HILLS, CALIFORNIA - SEPTEMBER 07: Chief Executive Officer of Apple Tim Cook speaks onstage during Vox Media's 2022 Code Conference - Day 2 on September 07, 2022 in Beverly Hills, California.
According to a report by Mashable, one of the reasons why Apple came up with the decision is because of shareholder concern over Cook's total pay.
While it sounds unfair for Cook to receive a slashed compensation this year, he supports the implementation that has taken effect this month.
"Mr. Cook's 2023 target total compensation is US$49 million, a reduction of over 40% from his 2022 target total compensation. The Compensation Committee also intends to position Mr. Cook's annual target compensation between the 80th and 90th percentiles relative to our primary peer group for future years," the document says.
It should be noted that the proxy statement was issued before Apple Investor Day took place. The exact date of the event is March 10. During this period, the shareholders can discuss whether they will reject or approve the proposal.
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Cook's 2022 Compensation is Higher than his 2023 Pay
Over a year ago, the same report says that Cook's compensation hit $84 million. At that time, the iPhone maker kept on posting impressive sales performance for its products. The company has been hitting its income goals in the same year.
According to the article, the proposed salary of Cook for 2023 only reaches $3 million. Meanwhile, the amount of cash that he will receive this year is fixed at $6 million. That's the same amount that he received in 2022.
When it comes to the equity award value, Cook is set to get $40 million, which is $35 million shy of his $75 payments over a year ago. It should be noted that a huge portion of this value relies on his performance, so if the overall operations are smooth and successful, it could increase, as well.
Aside from the feedback from the shareholder, another reason why the committee decided to cut Cook's pay is because of the possible recession that might take place this year.
Just like other tech companies that are affected by the COVID-19 pandemic, Apple experienced massive issues on its end, such as supply chain shortages and the like, per CNN.
In 2022, it was recorded that the Cupertino firm's shares plunged to 24%. This means that it needs to exert more effort to achieve its goal of increasing the price this year.
To date, Cook remains one of the wealthiest individuals that exist on the planet. Since 2011, he has been serving Apple as the tech head. Forbes says that his estimated net worth is now $1.7 billion.
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