The American company Apple continues to make changes to its organization: after receiving a request from Tim Cook himself, Apple would have decided to cut the salary of its executive director by more than 40%, down to 49 million dollars in 2023. In its last presentation Last week, the company revealed that the percentage of shares granted to Cook will increase this year from 50% to 75%.
This news comes just after the company decided to transform its modus operandi, implementing new changes in its production and sales processes. Among Apple’s latest movements, it is worth noting the cut in the manufacture of the iPhone 14 due to low sales and its plans to use its own chips and screens in its devices so as not to depend on Asian suppliers such as LG and Samsung. In addition, this week a much more surprising project has been leaked: Apple’s intention to add a touch screen to its MacBook laptops, something that Steve Jobs always rejected.
Redistribution
A decision taken after criticism from shareholders
In 2023, his remuneration will decrease by 40%, to 49 million dollars.
APPLE INC. HANDOU / EFE
Last year, Cook came to collect a whopping 99.4 million dollars between his base salary, his bonuses and the collection of dividends on his shares. A figure very similar to that entered in 2021, when the executive director earned about 98.7 million dollars. Now the company has decided to “reposition Mr. Cook’s annual compensation”, according to Bloomberg.
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This decision has been made after a barrage of criticism from Apple’s own shareholders, who have made their position clear in the face of the huge remuneration that the company’s CEO has received in recent years. These complaints from the team have made Cook consider his current position, making a shocking decision: in 2023, his compensation will drop 40%, to $49 million.
Last year, in the advisory vote on executive compensation, shareholders showed their discontent: support dropped from 95% to 64%. Likewise, the fall of almost 30% in corporate shares has prevented Cook from continuing his pace of earnings.
The performance of the company’s stock could affect Cook’s final compensation this year.
Apple
This uncomfortable situation has led Apple to lower the incentive in shares. The company itself has highlighted: “The remuneration committee weighed the opinions of shareholders, the exceptional performance of Apple and a recommendation from Mr. Cook to adjust his remuneration in view of the opinions received.”
Bloomberg points out that Cook’s ‘new salary’ will be made up of a base salary of 3 million dollars and a variable incentive of up to 6 million dollars that he also obtained in 2022. To this amount must be added a stock award of about 40 million dollars, so the CEO of Apple will have a salary decrease of almost 50%. Still, the performance of the company’s stock could positively affect Cook’s final compensation this year.
A whole controversy
A rare move among most CEOs
Apple CEO Tim Cook on September 14, 2021, during the presentation of the iPhone 13 range
AFP
It’s not uncommon to see CEOs voluntarily lowering their own salaries, which is why most of the Apple team will stick with their pay. In 2022, the company’s four top managers earned $27.15 million each. This group is made up of Luca Maestri, financial director; Kate Adams, General Secretary, Deirdre O’Brien, Vice President with responsibility for Stores and Human Resources, and Jeff Williams, Director of Operations.
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Although the salaries of these four executives depend to a large extent on the results and profitability of the company, for now there is no planned salary reduction in 2023. After the 27% fall suffered by Apple shares last year, the company of Apple currently appears to be on the mend, up 2.7% year-to-date.
