Apple has decided to try and improve its performance and reign in CEO Tim Cook, doing so by slashing his 2023 pay by a whopping 40 percent. That announcement came following a recent shareholder vote on his massive compensation package that raised significant questions about his pay given Apple’s weak stock performance in 2022. Now, following the pay cut, Cook’s pay will be much more tied to Apple’s stock performance.
News on that broke because Apple just had to file its 2023 Schedule 14-A document with the SEC. Based on what’s in that document, it looks like Tim Cook, Apple’s woke CEO, is going to tighten his belt in 2023.
Apparently, the Apple compensation committee, a committee made up of Art Levinson, Al Gore, and Andrea Jung, decided to lower Cook’s compensation. That decision was a direct response to a revolt by shareholders, who were furious about Cook’s huge paycheck despite Apple’s dismal 2022 performance.
According to the compensation committee, the pay cut was in response to last year’s “say-on-pay” vote. In that vote, only 64 percent of shareholders voted in favor of Cook’s compensation. Though a majority of shareholders, that was a plummet in support for Cook from 2020, at which time an overwhelming 95 percent of shareholders were in favor of the compensation package granted to Cook.
CNBC, reporting on the pay package adjustment, said:
Cook requested the change, Apple said in the filing, following a shareholder vote on his pay package. The company also reduced the number of restricted stock units Cook would receive if he retires before 2026.
In 2022, Cook made just under $83 million in stock awards, $12 million in incentives and $3 million in salary. He also got benefits including retirement plan contributions, security, personal air travel and more than $46,000 in vacation cash-out.
Apple’s compensation committee said it made the change in response to last year’s say-on-pay vote, in which 64% of shareholders approved of Cook’s compensation, down from 95% who approved it for Apple’s 2020 fiscal year.
Still, Apple’s board praised Cook’s performance, and said it has confidence in the CEO’s long-term strategic decisions.
Cook, for his part, stayed woke and tried to pass the blame for Apple’s weak 2022 performance in his letter to shareholders included in the document, saying (emphasis ours):
The global challenges with us all today — from inflation, to war in Eastern Europe, to the enduring impacts of the pandemic — make this a time for deliberate and thoughtful action. But it is not a time to retreat from the future. We’ve always run Apple for the long-term, and that means continuing to invest in innovation, in people, and in the positive difference we can make in the world.
Today, we have the strongest lineup of products and services we’ve ever had, and our technology has never shown up for our users in more ways. And our latest innovations are helping so many of us harness our creativity, connect with loved ones, find entertainment and joy, and live safer, healthier lives.
Across this work, our values remain a driving force behind our innovations. And I’m so inspired by people across Apple working to make our technology even more accessible, more private, and more empowering for all who use it. That kind of teamwork is made possible by people with a diversity of ideas and backgrounds. And this year, we’ve continued to make important progress improving representation within Apple — while fostering a welcoming, inclusive culture where everyone belongs.
Our teams are also pressing forward in the fight against climate change. Our corporate operations have been carbon neutral for three years, and today, we’re working to become carbon neutral for our global supply chain and product use by 2030. We continue to bring new renewable energy online, protect forests that sequester carbon, and innovate to use more recycled and sustainable materials across our products.
Progress like this makes me profoundly confident about the future of Apple, and technology’s potential to solve problems and improve lives. And I remain grateful to everyone at Apple for the work they do each and every day — and to our shareholders for their trust and investment in our company.
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