Apple CEO Tim Cook will earn considerably less in 2023 than he did in the last two years. The pay cut comes at the recommendation of the company as well as Cook himself. And it was approved Friday at Apple’s annual shareholder’s meeting.
In addition, five proposals made by shareholders for changes at the company were also voted down at the meeting.
Apple CEO Tim Cook pay drops 40%
Apple’s annual shareholders meeting is an opportunity for the board of directors to get feedback from the people who own the company. Cupertino is very successful and profitable, so shareholders rarely rock the boat. The 2023 meeting was no exception: Everything the BoD recommended for approval was approved, and everything it recommended be disapproved was likewise voted down.
That includes executive compensation. Still, there was some controversy because Tim Cook’s pay is going down quite a bit.
“Mr. Cook’s 2023 target total compensation is $49 million, a reduction of over 40% from his 2022 target total compensation,” reads the official notes from the meeting prospectus.
This comes after Cook’s approximately $99 million compensation packages in 2021 and 2022 got some pushback. Shareholders that opposed the previous payouts were pleased with Cook’s performance but were concerned about the large number of Apple shares that were being awarded to the CEO each year.
This means Apple’s top executive will receive only $49 million in compensation this year.
Shareholder proposals shot down at Apple annual meeting
The annual company meeting is where shareholders vote on proposals made by management and by other shareholders. This includes who is on the board of directors and other general mundane business.
Shareholders can make their own proposals, too. There were five at the 2023 Apple meeting, none of which were approved. Two stood out for providing some interesting moments in what was otherwise a snoozefest.
One sought to start the process of ending the company’s use of affirmative action in hiring on the grounds that it “is overtly bigoted against men, white people and straight people,” according to a prerecorded statement in favor of the proposal by Ethan Peck that was played at the meeting.
Another proposed an audit into how much of Apple’s operations depend on China. A statement in favor said, “Mr. Cook has disregarded the real threat posed by the detestable government he has partnered Apple with.”