Apple has always been in the limelight for doing things that are completely new for other people and brands. One such incident has taken place recently, which is related to the CEO of the company. Apple CEO Tim Cook felt that his package is too high and has himself requested a pay cut for the same. According to the reports, after the pay cut, Cook will receive only 50% of his current salary at the Cupertino Giant.
In a filing with the SEC, Apple also mentioned that Tim Cook’s revised salary would be $49 million in total. The salary includes a $3 million base salary, a $6 million bonus, and an equity of 40 million in the brand. Additionally, Tim Cook’s percentage of stock units connected with Apple’s performance will also move to 75 percent from 50 percent.
Reason behind the decision
Apple has said in a statement that the decision to revise Cook’s salary had been taken after ‘balanced shareholder feedback,’ Apple’s exceptional performance, and a recommendation from Cook. Further, Apple has suggested that that brand also has plans to ‘position Cook’s annual target compensation between the 80th and 90th percentiles relative to the primary peer group for the future years.
To recall, Cook became the CEO of the Cupertino giant in the year 2011 and has continuously taken the company towards success. During the SEC filing, Apple’s board also praised the performance of the company under Cook’s guidance.
Talking about his original salary, Tim Cook received a salary package of $99.4 million. This figure included the base salary of $3 million and $83 million in the form of bonuses and company stocks.
Concerns around his salary started when the SEC filed in 2022. The shareholders expressed their concern over the amount of Cook’s total target compensation due to the size of his 2021 and 2022 equity awards. In the last year’s annual meeting, Institutional Shareholder Services (ISS) suggested that the shareholders vote against Cook’s compensation package. However, most of the shareholders voted in favor of Cook’s pay package, due to which his salary structure remained unhampered last year.