Apple’s CEO TIM Cook Accepts Massive Pay Cut

0
Apple's CEO TIM Cook Accepts Massive Pay Cut
Apple’s Exit From Russia Expected To Cost Over $1 billion Dollars A Year
Tim Cook, Apple CEO has agreed to a massive pay cut of his salary after stakeholders rebelled. This decision is coming after a  vast majority of the stakeholders voted against his pay package when Apple’s stock fell close to 27% last year, although this vote is non-binding according to Apple’s board compensation committee, the pay cut was requested by Tim Cook.

Apple, which is the world’s largest tech company, disclosed that it would reduce the CEO’s target pay which the vast majority of its 2022 compensation about 75% was tied up in company shares and half of that was dependent on share price performance. This means that Tim Cook’s target pay package was dropped to $49 million which is 40% lesser than the compensation he was granted last year which was $99.4 million in total.

The company disclosed in a proxy statement, that the executive share target has been cut to $40 million, said that “The compensation committee balanced shareholder feedback, Apple’s exceptional performance, and a recommendation from Mr. Cook to adjust his compensation in light of the feedback received,”.

However, Cook’s base salary will not be reduced and will stay the same at $3 million as well as the $6 million bonus.

The board has, however, described that the CEO’s new payment package is “responsive to shareholder feedback while continuing both to align pay with performance and to recognize Mr. Cook’s outstanding leadership.”

The tech company which became the first publicly traded company to hit $3 trillion market capitalization, took a plunge in share prices due to the effect of the coronavirus lockdown which saw most of its factories closed down in China but has not shed close to $1 billion of the market capitalization.

Read Also:  BAT Raises sales growth outlook amid shift to e-cigarettes