Apple CEO Tim Cook Will Be Taking A Major Pay Cut For 2023

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Apple CEO Tim Cook Will Be Taking A Major Pay Cut For 2023
14 Jan 2023
6 min read

News Synopsis

Apple CEO Tim Cook will receive a major pay cut in 2023, the tech giant said in a US securities filing. According to the filing, Cook's 2023 "target total compensation is $49 million, a reduction of over 40% from his 2022 target total compensation", According to Apple's Compensation Committee, Cook's yearly target salary falls between the 80th and 90th percentiles.

Following shareholder criticism, Cook requested the reduction, according to a news agency.  A global economic slowdown and difficulties with the supply chain caused the iPhone manufacturer's shares to fall drastically last year. But Cook will continue to receive a $3 million base pay each year as well as a $6 million bonus. How he will be given shares in the company will make the most difference to his compensation package.

Apple gave Cook $75 million in shares in 2022, with half of those shares contingent on Apple's stock market performance. His stock award objective for this year has been cut to $40 million, with 25% of it dependent on share performance. Although Cook's actual total pay for 2017 was $99.4 million, the target for his compensation in 2022 was $84 million. According to a news agency, this figure included $712,500 for his use of a private jet and $630,600 for personal security expenses.

Recent declines in Apple's stock are a result of persistent production problems in China. According to a  news article, these issues are the result of COVID-19 restrictions and lockdowns, as well as a staffing deficit following a recent rise in COVID-19 cases in the nation. Global investors are also apprehensive about possible interest rate increases, a possible recession in the economy, and the ongoing situation in Ukraine.

Due to instability at its Zhangzhou facility, Apple supplier Foxconn reported an 11% drop in revenue for November 2021 compared to the same month the year before. Analysts have suggested that Tesla's recent sales difficulties are evident in the fact that the company has given discounts to customers in both China and North America, despite the fact that the company hasn't commented on reports that production at its Shanghai manufacturing plant has been reduced due to an increase in COVID-19 infections in China.

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