Apple lowers the salary of Tim Cook, who earned 99 million dollars in 2022, by 40%

Apple shareholders have complained about the stratospheric compensation of the company's CEO, Tim Cook.

Steve Jobs' successor at the head of the iPhone manufacturer has decided to pay some attention to these criticisms and has recommended that his salary be lowered.

His target remuneration for 2023 is cut by 40%, up to 49 million dollars (about 45 million euros, at current exchange rates).

In 2022, that objective or theoretical remuneration was set at 84 million dollars, but since expectations were exceeded, the manager ended up earning 99.4 million, as the company communicated this Thursday to the United States Securities and Exchange Commission.

Tim Cook already earned 98.7 million in 2021, which sparked criticism from investors and shareholders.

At last year's general meeting, shareholder support in the advisory vote on executive pay plummeted from 95% to 64%.

Publishing an even higher salary now after a year in which the company's shares have fallen by almost 30% was going to add more fuel to the fire of criticism, so Cook has preferred to anticipate.

After contacts with shareholders and conversations with Cook himself, the company will reduce the incentive in shares.

"The remuneration commission weighed the opinions of the shareholders, the exceptional performance of Apple and a recommendation from Mr. Cook to adjust his remuneration in light of the opinions received," explains Apple in the call for its next shareholders' meeting, which will be will be held on Friday, March 10.

Cook's salary is set at a base salary of $3 million per year, a variable cash incentive of another $6 million (which can be doubled) and a stock award of up to $40 million.

It is this last item that is reduced, from 75 million last year.

In addition, the criteria to be entitled to receive the shares also change.

While until now the weight of permanence in the position and the evolution of the company had the same weight, now performance will count for 75% and time for 25%.

The head of Apple has expressly supported these modifications.

"The remuneration committee considers that [the changes] respond to the opinions of the shareholders, while continuing to align the remuneration with the results and recognizing the outstanding leadership of Mr. Cook," says the company.

Apple has detailed the salaries of the past year.

Tim Cook earned $3 million in salary;

12 cash bonus and 83 million prize in shares.

To those 98 million, 1.4 million were added in other remuneration, a mixed bag that includes contributions to a pension plan;

life insurance premiums;

vacation pay in cash, amounting to $46,154;

security expenses in the amount of $591,196; and personal air travel expenses in private planes in the amount of $767,319.

"For reasons of safety and efficiency, the council requires Mr. Cook to use private aircraft for all of his business and personal travel," the company explains.

The company's four other highest-paid executives received $27.15 million each.

They are 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.

For them there is no discount planned for 2023, although their effective remuneration will depend on results and profitability.

The salary of non-executive directors is around $400,000 for each of them.

Art Levinson, the president, earned $562,000.

Among the resolutions up for a vote by the board are several shareholder proposals, most notably that “beginning in 2023, Apple reports annually to shareholders on the nature and degree to which corporate operations depend on and are vulnerable to communist China, which is a serial violator of human rights, a geopolitical threat, and an adversary of the United States.”

Apple recommends voting against.