Bea Beltran Tech 01.12.2023 23:Jan PM EST

Apple CEO Tim Cook Gets a Self-Imposed $35 Million Pay Cut

Apple CEO has taken a huge pay cut brought about by his own recommendation. Tim Cook will be receiving $49 million as compensation for 2023, with the amount being subjected to more than a 40% drop.

The Self-Imposed Reduction

Apple's CEO Tim Cook is taking a big pay cut this 2023 following his own recommendation. His previous compensation in 2022 was $84 million, which has seen a $35 million reduction resulting in a $49 million annual wage for 2023.

According to The Verge, it was based on an adjustment in his equity award value which was at an estimated $75 million last year. The estimate has fallen to $40 million, but some things haven't changed like his $6 million annual cash incentive and $3 million base salary.

Apple's shareholders held a vote after Cook requested a reduction in his wage. They also reduced the number of restricted stock units that Tim Cook will be receiving, given that he retired before 2026.

Despite the recommendation, it did not reflect Cook's performance for the company. Apple's board stated that the CEO's performance was good and that they were confident with his long-term strategic decisions.

There have been a few bumps regarding Cook's pay last year, seeing as the Institutional Shareholder Services wanted to vote against his pay package at the annual meeting of 2022, according to CNBC.

The compensation committee, Art Levinson, Al Gore, and Andrea Jung, expressed that they made changes to the size and structure of Tim Cook's pay for 2023, which were based on previous important conversations.

The factors that played a part in the decision were the company's size, scope, and performance, placing Cook's annual target compensation around 80% to 90% relative to the primary peer group for future years.

Cook's Success is Still a Success

Despite the exceptional performance of Cook during his time as Apple's current CEO, the company was still not exempted from the current downfalls of the economy and supply. The crisis was brought about by the restriction due to COVID-19, affecting many manufacturers.

The supply chain issues caused by fewer parts being produced affected Apple, specifically its products like iPhones, AirPods, Apple Watches, and MacBooks. Reports say that the tech giant's shares fell 4%, which became a concern regarding consumer demands.

This caused the company to lose around 31% of its market value which amounts to $1 trillion, bringing its total value down to $2 trillion, as mentioned in Daily Pioneer. Apple was the second to ever lose a trillion worth of market value in history, with Amazon being the first.

There's still hope for Apple to at least regain the market value it lost as the company plans to launch new innovative projects in the future and further upgrades for its flagship device. Among those projects is the Apple Car, which is dubbed "Project Titan."

The company is said to be working on a semi-autonomous car that's also self-driving. It will be powered by a chip designed by Apple, which has up to four times the power of four Mac chips, according to MacRumors.