Apple CEO to take a 40% pay cut
Tim Cook's pay is going from $99.4 million to $49 million. In a filing with the SEC, Apple has disclosed that the primary reason is Cook’s own recommendation to the compensation committee, supported by investors' counsel.
However, this cut will not result in any changes in his basic salary of $3 million and bonus value of $6 million.
Looking back at the past two years, Cook's 2022 compensation totalled $99.4 million, whereas, in 2021, it stood at $98.7 million - inclusive of a private jet and personal security costs of $712,500 and $630,600 respectively.
The present cut of $35 million comes from a change in the equity component of his pay. In the previous year, $75 million worth of shares was accorded to him by the company, based on Apple's stock market performance. However, this year, that award was slashed to $40 million.
Over the last year, Apple has witnessed twofold issues with the supply chain and global economic slowdown affecting its share price by more than 20%. Lockdowns in its China factories, coming on the heels of non-stop scandals around working conditions in those factories, contributed to the challenges.
With cost-cutting acts by companies becoming common across the globe, Tim Cook himself stepped up to request for a pay cut. It's reminiscent of his 2015 announcement, when he expressed his wish to donate his entire fortune to charity.