Tim Cook might get huge pay cut in 2023

Apple CEO Tim Cook is likely to take a big pay cut in 2023.

In a proxy statement for shareholders posted by Apple, one of the proposals is to reduce Cook’s compensation from $99 million in 2022 to $49 million this year. The cut was suggested by Apple’s Compensation Committee, according to the document. The committee is made up of three members of his Apple board of directors who will propose the company’s executive pay, citing shareholder concerns over Cook’s total compensation (among other reasons).

“Mr. Cook’s target total compensation for 2023 is $49 million, a reduction of more than 40% from the 2022 target total compensation. We plan to place it between the 80th and 90th percentiles in comparison.For the future,” the document reads.

According to the documents, Cook is in favor of changing the compensation.

The proxy statement was announced in advance of Apple Investor Day, scheduled for March 10. This is the day shareholders will vote to approve or reject the proposal.

Cook’s total target compensation for 2022 was actually $84 million, but it’s worth noting that Cook earned more than that as Apple hit certain sales and revenue targets.2023 Cook’s base salary for 2020 is proposed at $3 million, and his annual cash incentive is set at $6 million, the same as last year. It is proposed to be $10,000, and the higher portion of his stock award is related to performance.

Other Apple executives, including CFO Luca Maestri, COO Jeff Williams, senior vice president of retail and people Deirdre O’Brien, and senior vice president, general counsel and secretary Kate Adams, have the same compensation targets as last year. are getting

Shareholder feedback appears to be the main reason behind the proposed salary cut, but Apple may also be gearing up for a potential recession in 2023. Apple has weathered the pandemic year well, but supply chain shortages have hampered sales growth recently. below a trillion dollars.