Apple CEO Tim Cook could receive as much as $50 million in compensation in 2023, provided Apple meets all of its financial goals. Shareholders gave the okay to the compensation package during today’s annual shareholders meeting.
Bloomberg reports that Cook is set to receive a $3 million base salary, a $6 million cash bonus, and stock awards worth approximately $40 million. That compensation package is actually down approximately 40%, as he pocketed $99 million in 2022. Cook’s pay is tied closely to overall company performance. The shift was decided on after shareholders became upset about his pay package.
Shareholders approved a proposal that will see executive salaries decided with an annual vote. Other Apple executives will earn approximately $27 million each in 2023. This includes chief operating officer Jeff Williams, chief financial officer Luca Maestri, retail head Deirdre O’Brien, general counsel Katherine Adams, services chief Eddy Cue, software head Craig Federighi, and others.
Apple shares climbed about 15% this year, well outpacing the S&P 500 Index.
There were several measures rejected by shareholders. Apple had asked investors to reject those measures. Rejected measures included a civil rights audit on Apple’s diversity efforts, a call for Apple to report on its reliance on China on an annual basis, and a request for Apple to report on pay gaps at the company.
Shareholders voted on nine proposals in all: four from Apple and five from outside investors. While shareholders generally follow the company’s advice, recent years have seen shareholders go rogue on some proposals. Last year shareholders voted in favor of a public report on using concealment clauses in employee contracts.
All of Apple’s board of directors – including Cook, Chairman Arthur Levinson, former US Vice President Al Gore, and BlackRock Inc. co-founder Susan Wagner – were re-elected, despite an Apple shareholder calling for the removal of both Gore and Cook.
As has become traditional since the COVID-19 pandemic, the Cupertino firm’s annual meeting was held virtually. Cook made the introductory remarks and also took questions. Company general counsel Kate Adams handled the formal portion of the meeting and the voting process.
The executives were represented by memojis (the animated characters used in iMessage), while shareholders with proposals spoke via prerecorded messages. Before the meeting kicked off, Apple showed videos of its devices, such as the new AirPods Pro and Apple Watch Ultra, while also playing a commercial for the new yellow iPhone 14 color.
During the meeting, Cook shared how well Apple has adapted to the long-term effects of the COVID pandemic, as well as the Ukraine/Russia war and the related economic upheaval. Cook also talked about the company’s most recent product releases, the latest shows and films on the Apple TV+ streaming service, and other services, like Fitness+, Apple Pay, and Apple Music.
Cook told the virtually assembled that there is an “incredible amount of opportunity” in India and discussed the company’s plans to soon open the company’s first store in that country. Apple is also breaking India out into its own sales region, underscoring the country’s importance to the Cupertino firm. Cook also discussed the firm’s growth in Brazil, Indonesia, and Mexico as well.
When asked about the economy, Cook replied that it’s as “complex” as it’s ever been and that the company is being very deliberate on hiring and spending. Cook also said that the company will continue to work on streamlining its supply chain.