There may be a couple less yachts in Tim Cook’s future. As reported by CNN today, the 62-year-old Apple CEO has agreed to a massive pay cut, one in which his target pay package will be reduced to a smaller but apparently adequate $49 million. This is 40% lower than Cook’s target pay for 2022, and about half of the $99.4 million total compensation that he was granted last year, according to CNN’s coverage. Cook’s base salary of $3 million will stay the same, including a $6 million bonus.
From a CNN report:
The vast majority of Cook’s 2022 compensation — about 75% — was tied up in company shares, with half of that dependent on share price performance.
But shareholders voted against Cook’s pay package after Apple’s stock fell nearly 27% last year. The vote is nonbinding, but the board’s compensation committee said Cook requested the reduction.
“The compensation committee balanced shareholder feedback, Apple’s exceptional performance, and a recommendation from Mr. Cook to adjust his compensation in light of the feedback received,” the company said in its annual proxy statement released Thursday.
Tim Cook has served as Apple’s Chief Executive Officer since August 2011. According to his writeup on Apple.com, Cook worked at Compaq and IBM before joining Apple, and he holds an MBA from Duke University and a BS in Industrial Engineering from Auburn University. His personal wealth is estimated to be $1.7 billion.