Tim Cook, the CEO of Apple, will receive a more than 40% compensation reduction this year.
The IT firm claims that Mr. Cook asked for the reduction in pay after receiving feedback from shareholders.
He received a total “target compensation” from Apple’s compensation committee of $49 million for 2023.
A global economic slowdown and problems with the supply chain caused the iPhone manufacturer’s shares to drop sharply last year.
Apple stated in a filing with a US financial watchdog that “the Salary Committee considered shareholder criticism, Apple’s extraordinary performance, and a proposal from Mr. Cook to increase his compensation in light of the feedback received.”
Mr. Cook’s base yearly pay will remain at $3 million as a result of the change, along with a bonus of up to $6 million.
How he will be given shares in the company will make the most difference to his compensation package.
He received $75 million in shares from the firm in 2022, with half of those shares contingent on Apple’s stock market performance.
His stock award objective for this year has been reduced to $40 million, with 25% of it contingent on share performance.
Although Mr. Cook’s actual total salary for 2017 was $99.4 million, the aim for his compensation in 2022 was $84 million.
That figure included $630,600 in personal security costs and $712,500 for his use of a private jet.
Last year Apple shareholders were urged by a leading investor advisory group to vote against Mr Cook’s pay package.
In a letter to investors, Institutional Shareholder Services (ISS) said there are “significant concerns” over the “design and magnitude” of the package.
The ISS said Mr Cook’s pay was 1,447 times more than the wage of an average Apple employee.
Mr Cook became Apple’s chief executive in August 2011, just weeks before the death of co-founder Steve Jobs.
During a turbulent year for the technology sector, under Mr. Cook’s leadership, Apple became the first business to reach a stock market valuation of $3 trillion before sliding to approximately $2.1 trillion.
Lockdowns at Chinese manufacturing, supply chain hiccups, and a slowdown in the global economy have all contributed to a 20% decline in Apple’s share price during the past year.
According to Forbes magazine, the 62-year-personal old’s worth is estimated to be approximately $1.7 billion. Mr. Cook has promised to donate all of his wealth over his lifetime.