Apple CEO Tim Cook will receive less revenue this year. Cook's compensation target for this year was slashed by 40% on his own recommendation after being criticized by Apple shareholders.
In documents registered with the United States Securities and Exchange Commission, Apple sets a target of compensation that Cook will receive in 2023 of USD 49 million.
In 2022, Cook's compensation target is USD 84 million, which means that this year's compensation is cut by USD 35 million. Apple said this new compensation was determined through a number of considerations, including a request from Cook himself.
"The Compensation Committee considered the shareholder feedback, Apple's outstanding performance, and Mr. Cook's recommendation to adjust his compensation based on the feedback received," Apple said in a statement.
Although the amount of compensation received is reduced, the annual salary that Cook receives will not change at USD 3 million. The annual bonus has also not changed, up to USD 6 million.
This change only impacts the company's granted shares. In 2022, Cook received USD 75 million worth of shares, but this year the target was trimmed to USD 40 million and will depend on the performance of the stock.
In 2022, Cook's total compensation will be USD 99.4 million, exceeding the target of USD 84 million. This figure includes personal security costs of USD 630,600 and USD 712,500 for use of private aircraft.
Apple is still a successful company, but its market valuation has fallen to $1 trillion from its peak. The iPhone manufacturer is also experiencing several production, supply chain, and slowing global economic issues.
Last year, Apple shareholders were asked by an investor advisory group to oppose Cook's compensation being deemed too large. The group says Cook's compensation is 1,447 times more than the average Apple employee's salary.