Apple as we speak revealed its annual proxy assertion for traders, revealing a variety of particulars about govt compensation, shareholder proposals, and extra. This 12 months, the submitting has revealed that Tim Cook dinner will take a major pay minimize in 2023 after he himself steered that his compensation be adjusted in mild of suggestions.

In as we speak’s submitting, Apple explains that Tim Cook dinner may have a “goal compensation of $49 million in 2023, a decline of round 40% in comparison with what he earned in 2022:

Mr. Cook dinner’s 2023 goal complete compensation is $49 million, a discount of over 40% from his 2022 goal complete compensation. Bearing in mind Apple’s comparative measurement, scope, and efficiency, the Compensation Committee additionally intends to place Mr. Cook dinner’s annual goal compensation between the eightieth and ninetieth percentiles relative to our major peer group for future years.

Right here’s why Tim Cook dinner is taking a ~$50 million pay minimize

Apple’s board of administrators has a Compensation Committee that oversees issues like govt compensation. Based on as we speak’s submitting, Cook dinner himself really useful that his compensation construction be adjusted primarily based on suggestions acquired as a part of the Compensation Committee’s “Say on Pay” survey and vote.

The Compensation Committee evaluates and makes compensation selections previous to the beginning of every fiscal 12 months. The outcomes of the 2022 Say on Pay advisory vote led to broader shareholder engagement on govt compensation in 2022 of roughly 53% of institutional shares held. The Compensation Committee balanced shareholder suggestions, Apple’s distinctive efficiency, and a suggestion from Mr. Cook dinner to regulate his compensation in mild of the suggestions acquired.

Basically, the “Say on Pay” advisory vote ends in 2022 revealed that help for Apple’s govt compensation in 2021 had declined considerably in comparison with earlier years. In 2021, Tim Cook dinner acquired complete compensation of round $98 million. 64% of votes solid on the subsequent 12 months’s shareholders assembly have been in favor of the 2021 compensation paid to executives.

The outcomes of that vote represented a “notable year-over-year decline” from the outcomes the earlier 12 months, when 94.9% of shareholders surveyed supported the manager compensation proposal.

As such, the Compensation Committee – with help from Tim Cook dinner – got down to discover extra suggestions and contemplate modifications for govt compensation in 2023.

From as we speak’s filling:

In figuring out the suitable quantity of every compensation part for 2022, the Compensation Committee mentioned quite a few components with the Board and its impartial compensation advisor, together with Mr. Cook dinner’s excellent management, the immense scope and complexity of his function as Apple’s CEO, the Board’s confidence in his long-term strategic selections, the Firm’s distinctive monetary outcomes delivered throughout 2021, shareholder suggestions, and the worth of his prior fairness awards as in comparison with the worth of his present excellent fairness awards.

Balancing shareholder suggestions, a need to proceed to create significant efficiency and retention incentives, and Mr. Cook dinner’s help for modifications to his compensation to mirror the suggestions acquired, the Compensation Committee maintained the money parts of Mr. Cook dinner’s 2023 compensation and lowered his goal fairness award grant worth.

With these modifications for 2023, right here’s the breakdown of how Tim Cook dinner will likely be paid in 2023, equaling out to a complete compensation goal of $49 million (down from the $84 million goal of 2022):

• Base wage: $3 million (No change)
• Annual Money Incentive: $6 million (No change)
• Fairness Award Worth: $40 million
  • Down from $75 million in 2022
  • In 2022: 50% performance-based vesting and 50% time-based vesting
  • In 2023: 75% performance-based vesting and 25% time-based vesting

One factor to notice is that Cook dinner’s goal compensation was $84 million for 2022, however he really made round $99.4 million on condition that a lot of his compensation is performance-based and tied to Apple’s inventory.

In a 2015 interview, Cook dinner mentioned he plans to provide away all of his wealth by a “systematic strategy” to giving. On the time, he mentioned he had began donating cash “quietly,” however didn’t reveal particulars.

Tim Cook dinner’s personal jet prices

Apple’s board of administrators carried out a coverage in 2017 that requires Cook dinner to make use of a personal jet for all of his enterprise and private journey for “safety and effectivity causes.” Since that coverage as carried out, folks like to understand how a lot Apple spends on Cook dinner’s use of a personal jet and safety prices.

For 2022, Apple says that it spent $591,196 in safety bills for Tim Cook dinner, representing the “incremental value to Apple for private safety companies offered to Mr. Cook dinner as decided by allocating each direct prices and a proportion of mounted prices incurred by Apple and used to supply such private safety companies.”

As for the personal jet, Apple says it spent $767,319 on air journey bills for Cook dinner. This consists of Cook dinner’s private use of personal plane primarily based on hourly flight expenses and different variable prices incurred by Apple for such use, together with variable gas expenses, departure charges, and touchdown charges.

The total submitting is beneath.

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