Apple CEO Tim Cook takes over 40% pay cut this year, reduces salary to $49 million

Apple CEO Tim Cook will be taking a major pay cut for 2023, revealed the tech giant in a US security filing. Cook's 2023 "target total compensation is $49 million, a reduction of over 40% from his 2022 target total compensation", said the filing. Cook's annual target compensation is between the 80th and 90th percentiles, said the Compensation Committee of the company. 

Cook requested the cut after criticism from shareholders, BBC reported. Last year the iPhone maker's shares fell sharply in the face of supply chain issues and a global economic slowdown. However, Cook's annual basic salary will remain unchanged at $3m, as well as a bonus of up to $6m. The biggest difference to his pay package is how he will be awarded shares in the firm.

In 2022, Apple granted Cook $75 million of shares, half of which were based on how well Apple performed on the stock market. For this year, his stock award target has been cut to $40 million with three quarters of that dependant on share performance. The target for Cook's compensation for 2022 was $84 million, although his actual total pay for last year was $99.4 million. That figure included $630,600 in personal security costs and $712,500 for his use of a private jet, reported BBC.

Apple's shares fall

Apple's stocks have recently decreased due to ongoing issues with production in China. These problems have been caused by COVID-19 restrictions and lockdowns, as well as a staffing shortage after a recent increase in COVID-19 cases in the country, as per a report from BBC news. In addition, global investors are concerned about potential interest rate hikes, a potential economic slowdown, and the ongoing conflict in Ukraine.

Apple supplier Foxconn reported an 11 per cent decrease in revenue for November 2021 compared to the same month the previous year, which has been attributed to unrest at its Zhangzhou plant. There have also been reports that Tesla's Shanghai manufacturing plant has reduced production due to rising COVID-19 infections in China, though the company has not commented on these reports, analysts have suggested that Tesla's recent sales struggles are evident in the fact that the company has offered discounts to customers in both China and North America.