r/technology
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u/geoxol
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Jan 13 '23
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Apple CEO Tim Cook to take more than 40% pay cut Business
https://apnews.com/article/technology-apple-inc-tim-cook-business-d056553b10120c4a968b562cb7ece5d2915
u/deloreanipsum Jan 14 '23 edited Jan 14 '23
He could take a 99% pay cut and still make more than me.
EDIT: He could take a 99.9% pay cut and still make more than me. Sad day.
EDIT: Crazy how many people support such gross wealth inequality. The sad truth is no one becomes a multi-millionaire without exploiting people. It was not “earned” honestly.
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u/PurpleContribution98 Jan 14 '23
He could take a 100% pay cut and still not have to worry about a lack of money
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u/zZempm Jan 14 '23
He could take a 99.99% salary cut to meet the US requirement of a middle class family of three (barely misses the upper middle class requirement)
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u/CedarBuffalo
Jan 13 '23
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Well. How do you like Tim Apples?
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u/Fitbot5000 Jan 13 '23
Is this the Silicon Valley / Good Will Hunting crossover I’ve been waiting for?
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u/ToothlessGrandma Jan 13 '23
This guy fucks
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Jan 13 '23
These are not the doors of a billionaire
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u/SomePunIntended Jan 13 '23
Not like this!
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u/DantifA Jan 14 '23
I have doors that open like this
➡️⬅️➡️⬅️
not like this
↖️↘️↙️↗️
or this
↩️↪️↩️↪️
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u/Vprbite Jan 13 '23
You think yeeeaaawww wicked smaaaat with yeeeeaaaawwww gaaavin belson and yaaaa petaaah gregory?
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u/No_Employment_129 Jan 13 '23
According to the article, the pay cut was advised partly based off his own recommendation.
It’s a 40% cut of his salary, which is $3m, so down to $1.8m. Still rich beyond anyone’s wildest dreams. AND, his stock options value is roughly $100m. And who knows how many other investments he has, which have nothing to do with this article.
Seems like a publicity stunt to me.
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Jan 13 '23
[deleted]
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u/Crotean Jan 13 '23
Honestly for as much damn money as Apple makes thats actually not that egregious compared to a lot of CEOs who are making that as their corporations go bankrupt. Still an obscene amount of money.
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u/SweatyAdhesive Jan 13 '23
CEO of PG&E is making 50m in comp while raising prices on everyone lol
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u/ParlorSoldier Jan 13 '23
Gotta love those “we’re burying utility lines out of the goodness of our hearts to save you money, and definitely not because we killed people and paid billions in fines” commercials.
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u/JustYourNeighbor Jan 14 '23
Fuck fines. A hunter starts a signal fire after he got lost (that rampaged out of control and people died) arrested and he went on trial with the possibility of the death sentence. PG & E starts a fire ((that rampaged out of control and people died) and nobody missed an episode of GoT.
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u/Iredditfromwork Jan 13 '23
I’m curious about the delta between him and the average salary at Apple and how that compares to the rest of the industry.
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u/PHATsakk43 Jan 14 '23
I live in Raleigh, and the announced average salary for the Apple location that is being built here is $190k/yr.
That’s significantly above the average even in an area that has fairly high salaries for the southeast.
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u/Iredditfromwork Jan 14 '23
Exactly. I’m willing to bet that Tim Apple’s relative comp package is far smaller than most CEOs.
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u/abandon__ship Jan 13 '23
Yeah from an operational standpoint it’s also pretty insane what he has lead them through. Beef with trump, trade wars with China that trump started, COVID AND he still managed to get iphones in stores with upgrades. Plenty of other supply chains fell apart but Apple held even with production in China
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u/AnEngimaneer Jan 13 '23 •
Dude is a supply chain god tbh
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u/Lord_Abort Jan 13 '23
Seems to be the most important facet to a company these days. Thanks to the internet, you could be selling literal shit, and somebody would want it, but they want it now.
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u/rayinreverse Jan 14 '23
I work for a company struggling with logistics. We are a Japanese company. It is so impactful it’s hard to explain.
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u/DearName100 Jan 13 '23
Not to mention the most important of all: leading Apple successfully in the post-Jobs era. Not many people could have done it as well as he has.
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u/spooner248 Jan 13 '23
I was aboutta say. I wouldn’t have been surprised if it was in the hundred millions.
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u/TardOfAvon Jan 13 '23
Even a hundred million is a drop in the bucket for Apple.
In 2021 they averaged more than $1B/day in revenue
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Jan 13 '23 edited Jan 13 '23
[deleted]
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u/DoctorWorm_ Jan 13 '23
We should go back to the 20:1 ceo pay ratio we had in the 60s. And that should include the impoverished people making his iPhones.
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u/Clewin Jan 13 '23
Or 10:1 as per Japanese CEO to average worker or 11:1 for Germany. I don't know if that has changed much, but that's what I remember from 8-10 years ago when I worked for a German company with a highly paid CEO causing their average to be much higher than even 11:1 and being one imbalance factor (but still under compensated by US standards by about 1/3).
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Jan 13 '23
Even if it is a publicity stunt, if he uses that 3 million to give raises to his blue collar employees, it would still be a respected publicity stunt.
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u/reasonably_plausible Jan 13 '23
I don't know. With around 65,000 retail employees, I'd think a 2¢/hr raise is more likely to be seen as an insult than as a respected publicity stunt.
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u/ganjanoob Jan 13 '23
I got a .15 cent raise an hour per union contract and it just feels like an insult. I’m making good money so it’s not a problem right now but 15 cents isn’t touching inflation.
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u/FNALSOLUTION1 Jan 13 '23
I got a dollar/hr raise an immediately after the toll I pay to get home everyday went from $1.25 to $3. Got to love inflation.
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u/ganjanoob Jan 13 '23
I’m sorry. I know it’s frustrating when there’s no ability to save up and it feels like inflation just keeps eating you up
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u/prncrny Jan 13 '23
I'm making twice what I was 3 years ago and my margins are identical, if not worse. It really eats at a man's confidence.
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u/Reflexlon Jan 13 '23
10 years ago if you'd told me that I'd be making what I am now with my benefits like vacation, insurance, bonuses, I'd think I made it and am living life. Nope, I dont take my vacations because I need the EoY pay-out to survive holiday expenditures. Yippee.
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u/oboshoe Jan 13 '23
It would be a laughable publicity stunt. On the order of a "fruit of the month club"
Let's do some math. $3 million divided up equally to all 36,000 employees.
Each employee would $83. A year. Or abut $1.59 a week.
Before inflation took off Apple budgeted about $154 million a year on raises. (3%). Not sure what it is now.
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u/DirtyDoctrine Jan 13 '23
This would be awesome, but Apple has a history of not doing that.
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u/oboshoe Jan 13 '23
If Apple took that $3m salary and gave it to all employees, that be $83 a year.
On the other hand, apple historically budged about $154 million a year on raises. That's before inflation took off.
What you think would be a great and wonderful raises, is 50 times less than what they normally get.
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u/mferrari_3 Jan 13 '23
If you think that will happen I'd love to sell you some essential oils or cutco knives.
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u/Strontium90Abombbaby Jan 13 '23
Completely, apple just posted record revenue. Highest of all time, higher than snoop dogg.
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u/SLAV33 Jan 13 '23
If this happened instead of them laying off 100's or 1000's of employees good on him and Apple.
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u/norcaltobos Jan 13 '23
Apple hasn't really slowed up much on hiring. I support them as a recruiter and of all of the large tech companies, their hiring has slowed down the least.
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u/squidonthebass Jan 13 '23
Anecdotal, but my brother-in-law who works for them said they go out of their way to hire when the job market is like this, it's a good opportunity to hire solid developers who got laid off without needing to pay extra buckets of cash to poach them from another tech giant.
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u/norcaltobos Jan 14 '23
It's an excellent time to hire if you are a financially stable company in any industry right now. This is the time to get the best talent and the best companies do exactly that.
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u/kiteguycan Jan 14 '23
You must be thinking tech. Blue collar and blue collar related industries are screaming for people.
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u/norcaltobos Jan 14 '23
That's always been the case. There are almost always general labor opportunities.
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u/WestPastEast Jan 13 '23 edited Jan 13 '23
No it’s more indicative of performance based salary and him taking accountability. He’s demonstrating that if the company is not reaching its goals then the CEO shouldn’t be getting huge bonuses.
It may not be benevolent but it’s definitely the right signal to send in a downturning market.
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u/SLAV33 Jan 13 '23
Even if it's just accountability it's still better than a lot of others.
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u/immaownyou Jan 13 '23
CEOs have been getting undeserved raises for decades over people that actually do things, it's about time
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u/mckirkus Jan 13 '23
I think it's more about maintaining morale in the ranks via solidarity as they begin layoffs.
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u/Beny1995 Jan 13 '23 edited Jan 13 '23
Unlikely. Tim Cooks' salary is $3m so -40%= $1.8m. I'd wager he isn't taking a cut on his bonuses.
Meanwhile Meta laying off 10,000 employees with an average wage of $100,000 (very conservative estimate) equals an annual saving of $1bn. Almost 1000 times more saving.
Now, if all apple SVPs and VPs take similar paycuts, we might be in the same ballpark.
Edit: yeah fair dos I didn't read the article, it's his TC getting cut not his salary. Still my point stands that the saving won't come close to layoffs.
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u/wpScraps Jan 13 '23
"Apple Inc. said in a regulatory filing late Thursday that Cook’s target total compensation is $49 million for 2023, with a $3 million salary, $6 million cash incentive and $40 million in equity awards."
Cook has received a $3 million base salary for the past three years, but his total compensation — which includes the restricted awards — jumped from $14.8 million in 2020 to $98.7 million in 2021 and $99.4 million in 2022.
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u/tingulz Jan 13 '23
That’s disgusting.
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u/Jak_n_Dax Jan 13 '23 •
It really is.
How do I become a CEO?
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u/blueberrywine Jan 13 '23
Just gotta send in your resume
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u/Jak_n_Dax Jan 13 '23
That’s it?
Edit: guys it works! I’m rich now.
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u/Kotopause Jan 13 '23
Damn! Too bad I don’t have a resume.
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u/Charles_Whethers Jan 13 '23
Hit the "Pause" icon. It will show up once you do that.
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u/Pomnom Jan 13 '23
I heard being 3 CEOs is even easier. How do I become 27 CEOs?
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Jan 13 '23
What would be a reasonable compensation for someone leading a $2.1 Trillion company?
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u/zimm0who0net Jan 13 '23
Dude, he runs literally the largest company in the world. If you want disgusting, how about the fact that Russell Wilson gets $250M to throw a ball around 16 days a year. And he’s actually really bad at doing it.
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u/functionallylazy Jan 13 '23
Wilson's compensation is ridiculous, but it's not as simple as throwing a ball around 16 days a year. They added a 17th game last season.
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u/EcclesiasticalVanity Jan 13 '23
It only took him till the 14th game to score as many touchdowns as has bathrooms in his home.
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u/Ok-Engineering-6135 Jan 13 '23 •
How is getting stock for the company u work at as a ceo disgusting??
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u/Paolo2ss Jan 13 '23
Why? He should be payed a lot. Apple has a bigger budget/net worth than some countries.
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u/ChillyBearGrylls Jan 13 '23
Lol you try and run one of the most successful transnational entities the human species has produced.
The largest Western companies are more valuable than entire non-Western countries.
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u/Dumbass1171 Jan 13 '23
People here acting as if being the CEO of a multibillion dollar corporation is easy
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u/Thetacoseer Jan 13 '23
2nd paragraph of the article. His base pay and cash incentive are not changing. His equity compensation is being reduced 40%, which takes his total target compensation down from $84m in 2022 to $49m in 2023
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u/--Nyxed-- Jan 13 '23
That really is the type of thing you should spend the 2 minutes to read about instead of guessing.
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u/nanlinr Jan 13 '23
Um, read the article and compare the numbers? It's a 40% cut to his total compensation including equity awards.
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u/Play_with_allan Jan 13 '23
And this kids is forming an opinion based on existing biases. Creating a self fulfilling prophecy that the world is shit by making up negative stories in your head with zero facts or proof.
Don't be like this man kids.
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u/this-my-5th-account
Jan 13 '23
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He's still earning more in a year than any of us will ever see in a lifetime.
I'm sure he'll survive.
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u/Evilbred Jan 13 '23
He earns more in a month than most in a lifetime. His salary is only a small part of his compensation package.
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u/UltraSPARC Jan 13 '23
They restructured his compensation package too. They don’t want him to retire before 2026 so now his comp won’t mature until the end of 2025 instead of yearly. It was something like $119 million. Fun fact: he had a compensation package in 2015 that was $900 million if he held onto all the stock in todays dollars.
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u/BigGreen4 Jan 13 '23
According to the articles, this was his idea, after having listened to feedback from shareholders. He then put it to the shareholders to vote and they agreed, about 66% in favor of the new compensation package.
I just hope the funds saved will remain in employee compensation and be redirected to the employees. This would be a big step forward. (I understand that’s wishful thinking.)
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u/kent_eh Jan 13 '23
He then put it to the shareholders to vote and they agreed, about 66% in favor of the new compensation package.
I just hope the funds saved will remain in employee compensation and be redirected to the employees
If the shareholders wanted it, then they'll be the ones getting any extra money.
I would be shocked if they voted for anything other than their own personal enrichment.
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u/BigGreen4 Jan 13 '23 edited Jan 13 '23
Which is a good and valid point that CEO’s are not the one’s who control employee wages long-term. It’s the shareholders.
If Tim Cook gave all employees a 50% raise - everybody’s happy in the world. Until earnings come out, and the company (likely) underperforms. When a company underperforms, their shares tend to lose value. When the stock loses value, the shareholders lose money. The shareholders then pressure the board to fire the CEO (Tim Cook). New CEO moves in, cuts wages to get earnings back in line, and we’re back where we started.
Yet everyone points their fingers at the CEO.
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u/beavedaniels Jan 13 '23
Part of the CEOs job is to be the one who gets the finger pointed at them.
It's like the commissioners of the major sports leagues. They accept huge amounts of compensation in return for being the villain, so the real villains can continue doing fucked up shit behind closed doors.
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u/ChillyBearGrylls Jan 13 '23
They accept huge amounts of compensation in return for being the villain, so the real villains can continue doing fucked up shit behind closed doors
Amusingly, that also describes Ticketmaster et al - they would have no price setting ability if venues and performers didn't work with them. TM is the 'heel' in the story.
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u/beavedaniels Jan 13 '23
Yep! No shortage of people and organizations willing to trade the moral high ground for money haha
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u/FuujinSama Jan 13 '23
It's ridiculous, even. Venues have limited tickets. Clearly, there are enough people willing to buy the inflated """"scalper"""" prices. So why not set that as the initial sell price?
Instead they pretend concerts are still "affordable" and sell cheap tickets that they themselves immediately buy to sell again at the correct price. This in turn means the people that fail to buy the affordable tickets in time blame "scalpers" and "ticket master" instead of blaming the venues and artists for having the ridiculous but correct pricing.
In truth, it's all just an artifact of huge wealth inequality. If there's an event in demand with limited lotation (say 10,000 seats), the price of that event is what the 10,000 richest people that want to see the event can afford. In a world with huge wealth inequality that might be $500 or it might be $1000 whereas a reasonable price for the average worker would be $50 or lower.
Poor people will soon be unable to attend any sort of concert. That's just how it is. No money at all in filling a venue with poor people when there are enough rich people willing to pay. This wouldn't magically change if we added laws against scalpers or anything was made about ticketmaster. The only change would be venues and artists coming clean with the whole deal.
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u/Bakoro Jan 13 '23 edited Jan 14 '23
"Underperforms" the completely bullshit, high sloped infinite growth curve that shareholders expect, even during a recession.
The greedy psychopaths we generally call "shareholders" look at a perfectly healthy company, with steady returns, and a good long term strategy, and those shareholders will says it's "underperforming", because the company could also be sucking the blood from newborn children to maximize next quarter's profits.
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u/oboshoe Jan 13 '23
That would be nice for Apple employees.
They are doing well though. Median comp is $143,000 a year at Apple.
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u/absentmindedjwc Jan 13 '23
They are doing well though. Median comp is $143,000 a year at Apple.
It is worth pointing out, as it seems to have confused people in another comment thread that mentioned this, that $143,000 is the median compensation for all Apple employees nationwide - corporate and retail.
A lot of people read this in that other chain and thought that Apple corporate employees averaged $143k, which is very much not a great salary in Cupertino California... the corporate employee median is likely quite a lot higher than $143k.
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u/korben2600 Jan 13 '23
That's not median pay. That's mean. So including the multi-million dollar salaries of the executives. The average pay for the "Client Advisor" title is $31,115.
Apple's median pay in 2018 was just $55,426.
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u/Z23kG3Cn7f Jan 13 '23 edited Jan 13 '23
Apple is worth over $1TN in the bank.
It's their choice to not pay workers decently
Edit: I corrected it to worth, not cash. My bad.
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u/IAP-23I Jan 13 '23
Apple doesn’t have over a trillion in the bank, how does shit like this get upvotes
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u/16semesters Jan 13 '23
And them saying Apple doesn't pay their workers well, when they pay above average for every sector of employee?!
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u/Cthulhuonpcin144p Jan 13 '23
They have 48billion in cash+short term investments. It’s nowhere close to a trillion$
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u/korben2600 Jan 13 '23
Yeah, they're probably conflating cash reserves with Apple's market cap which recently broke valuation records at $1 trillion (2018) and later $2 trillion (2020).
Apple's cash and bond reserves have been as high as $270 billion at its peak. Once Orange Julius passed his billionaire tax cuts in 2017, they took advantage of a tax loophole in the law which allowed corporations to repatriate their offshore cash back into the USA at a one-time rate of 15% which saved Apple roughly $47 billion in taxes.
Instead of adjusting employee compensation upwards, as Republicans said would happen, boosting the economy, most corporations used much of their windfall on stock buybacks and shareholder dividends. Apple used these methods to transfer ~$175 billion of the repatriated cash directly to shareholders.
As of Oct 2022, they currently hold $180B in cash and bonds. Apple keeps about 46% of its cash reserves in corporate bonds. Probably some of the largest cash reserves of any corporation on Earth.
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u/NotReallyChaucer Jan 13 '23
Apple also, as a result of the 2017 Tax package, gave each employee below a certain executive level $2500 of RSUs that vested over three years. I didn’t read of other companies who actually took the opportunity to benefit their employees. Yes, the amount may seem paltry, but it’s not nothing.
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u/Pokerhobo Jan 13 '23
This is correct and easy to look up. Apple has been continuously doing stock buybacks. They've never had close to $1T in the bank.
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u/Dman5891 Jan 13 '23
Fun fact; if you spent a million dollars a day from the day Christ was born you would have spent less than 3/4 of a trillion dollars.
Pay your workers Timmy.
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u/GroverMcGillicutty Jan 13 '23
Apple is spending a hell of a lot more than a million a day in wages.
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u/ttylyl Jan 13 '23
Apple has nowhere near 1 trillion in the bank lol. The value of the entire company is around 1 trillion. Which means if Apple wanted a trillion dollars they would have to somehow reclaim all the already sold shares and then sell 100% of their company to someone else, at which point they don’t get to chose what to do with the 1 trillion.
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u/Draiko Jan 13 '23
In the bank? No.
Their cash on hand is around $50 Billion.
The entire company has a valuation of $1 Trillion which is very different.
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u/ExceedingChunk Jan 13 '23
His compensation is crazy and he got $75m in stocks alone last year, but using "if he held his stocks for years, his compensation 10 years ago would be X" for any kind of compensation doesn't make sense.
The compensation is always just what the stock is worth at the time for any single stock that is publically available.
For example, if any other CEO that worked for any other company, got the same cash value in stocks as Tim, sold them and bought Apple stock for every single penny, nobody would suggest he got a $900m compensation package in 2015.
He's obviously filthy rich, but compensation doesn't work like that.
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u/Kakarot_faps Jan 13 '23
The first rule about rich people is that 99% of them are rich not because of salary. There are over 9 million millionaires in America and almost all of them made it due to their house and/or the stock market making 40 times what they put in 40 years ago.
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u/__Hello_my_name_is__ Jan 13 '23
He is a billionaire. He could earn exactly zero dollars and he would make more in interest than you ever will.
Hell, he could pay his current salary every year and he wouldn't even notice.
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u/Zefirus Jan 13 '23
A billionaire could have his money in the worst savings account making 1% per year (the financial equivalent of burying it all in the backyard) and he'd make more money off that 1 year than someone in the upper class would make in their entire career.
If you had a salary of $300,000 a year and worked for 30 years, a billionaire with that 1% of interest for 1 year would still have made more money than you.
People really don't understand how big a billion dollars is.
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u/Donald_J_Putin Jan 13 '23
The median lifetime earnings is less than $4m.
He would earn that interest in a matter of a week or so.
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u/NEONSN3K Jan 13 '23
The difference is. He’s taking a pay cut, in which all CEOs should. The pay difference is so disproportionate it’s no wonder the world is struggling when the workers who are the life blood of the economy aren’t being paid enough in lieu of the rising inflation.
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u/jandkas Jan 13 '23
Honestly good on him. He's taking a pay cut along with other execs so Apple doesn't have to lay off people...hopefully
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u/FunctionBuilt Jan 13 '23
Dudes making average yearly salary in a week in just his salary from Apple. If you include his total compensation it’s more like 5x average US salary a day.
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u/HVACpro69 Jan 13 '23
I think we all knew that. What's the point of this comment?
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u/Cheeky_Star Jan 13 '23
With these deals there is always a compensation side like more stock options etc. it’s never that clean. Also not sure what he needs to take a paycut as apple has the cash on hand to continue paying him and not lay off anyone.
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u/kkehoe5 Jan 13 '23
What’s your point? You earn more in a year than the kid who assembled your smartphone will see in his lifetime.
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u/gnocchicotti Jan 13 '23
Pat Gelsinger of Intel is my favorite CEO statistic.
CEO of a company with 1/5 the revenue of Apple, and is in stunning decline, made 80% of Tim Cook's compensation in 2022. For a brief time I recall he made more than Satya Nadella and Tim Cook combined.
I assume there are many ways to split this and it changes all the time due to performance targets and stock price, but if I were an Intel shareholder I would be watching that dude very, very closely to say the least. Shareholders voted 2:1 to reject the pay package in rather uncommon rebuke, but guess what the vote is non-binding because America is about funneling money to the top 0.01% and anyone with a pension fund or a 401k can go fuck themselves.
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u/harlanm71 Jan 14 '23
...and nearly his entire pay package is performance based over 3-5 years and on track for a 0% payout. To receive the full amount, the stock price would have to grow by several hundred billion dollars. Gelsinger's headline pay package is just due to SEC requirements for how executive compensation is reported. The board addressed this in the 2022 annual report. He actually received a $1.1M salary and $1.75M cash hiring bonus.
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u/348274625912031 Jan 14 '23
Why is this so far down?
People citing the total potential package, but it is dependent on share price metrics..
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u/Tathorn Jan 13 '23
What do you mean by "the vote is non-binding"? Never heard that before in shareholder votes.
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u/gnocchicotti Jan 13 '23
It means the board said "even though we have a fiduciary duty to serve the best interests of our shareholders, we gotta take care of our boy and that's more important"
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u/Hampsterhumper Jan 14 '23
The CEO of Roblox made 232 million bucks last year...
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u/Operationalinsanity Jan 13 '23 edited Jan 13 '23
Pat Gelsinger, and INTC as a whole, is fucking shit. Has been a turn-around story for the last 5 CEOs, it is garbage. I remember when going fabless became the rage and this fucking imbecile decided to double down on in-house foundries, a massively capex intensive segment that is winner-takes-all, and such winner being TSMC for now. It also takes decades to build and have a foundry operational. All this while INTC struggles to even fulfill ETAs on products because of in-house production issues
EDIT: INTC not INTL is the ticker, I messed up
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u/drawkbox Jan 13 '23
INTL
INTC, get ya symbols right when turfing son.
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u/twat_muncher Jan 13 '23
Why not just add one letter to spell the whole word Intel? We aren't on WSB
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u/drawkbox Jan 13 '23
INTC is the ticker symbol. INTL was the one they thought was the ticker symbol. Though yeah, could just write it out but if you are talking about stocks makes sense. Intel also can get confused with intel (data).
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u/detectiveDollar Jan 13 '23
I don't like Intel, hell I'm invested in AMD, but getting rid of fabs would be a huge mistake.
Fabs give Intel supply, not everyone is on the latest node so they can fab their chips with Intel, and shrinking transistors is getting harder and harder, so Intel may well catch up.
Plus, if Intel leaves the market it'll be what, just Samsung and TSMC left?
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u/Dramatic-Ad7192 Jan 13 '23
Intel keeping fabs in the US was more of a national security/IP protection decision. Not sure they’d be allowed to go fabless. We’re dumping money into US chipmakers at the moment.
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u/Anxiet Jan 13 '23 edited Jan 13 '23
As he should. Other CEOs should follow the same path. When the company does well you get a chunk. When it does bad you get a cut. You don’t trickle down till last resort as those under you get crumbs when it’s doing well.
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u/Particular_Bobcat Jan 13 '23
This already happens with the stock based compensation, which often accounts for > 70% of the compensation.
Doing worse --> stock goes down --> lower compensation
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u/Konradleijon Jan 13 '23
It happens a lot in Japan. Where CEOs feel like company performance is their fault
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u/Anxiet Jan 13 '23
In the end, that’s what being a CEO is. You are the driver, you make decisions and corrections. If you fail to do so or make the wrong ones… it’s on you.
America is just using corporations as modern day fiefdoms.
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u/weird-oh Jan 13 '23
Great. Now I'm gonna have to lie awake at night worrying about Tim Apple.
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u/GiantPandammonia Jan 13 '23
He's had a rough time of it since the fiasco with the dinosaurs and giant locusts.
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u/royhaven
Jan 13 '23
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You really can't make people happy on reddit.
Company has a RIF and reddit's reaction is "shouldn't the CEO look at cutting his own salary?"
CEO cuts his own salary and reddit's reaction is "He's still getting paid too much".
This article wasn't aimed at making you feel sorry for Tim Cook. It was simply pointing out what happened.
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u/InitiatePenguin Jan 13 '23 •
CEO cuts his own salary and reddit's reaction is "He's still getting paid too much".
He cut down his salary to 3x his salary three years ago after spiking it 8x over the pandemic.
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u/Kelter_Skelter Jan 13 '23
What are the actual annual salary numbers per year? I know you're leaving it out to shorten your response but it would be beneficial to post that in a thread like this
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u/InitiatePenguin Jan 13 '23
14 mil and change before the pandemic and 98 after. 49 moving forward.
The income salary portion remained constant at 3, additional compensation like equity and cash incentives are what ballooned. It's all in the article.
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u/SarkHD Jan 13 '23 •
Those things can both be true in the same time though.
Yes he cut his own salary, and yes he is still making more than anyone would ever need. It makes 0 difference for him financially, yet the $40 million he cut from his compensation package would be a life changing amount if broken up between 100 or hell even 1000 people.
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u/kent_eh Jan 13 '23
yet the $40 million he cut from his compensation package would be a life changing amount if broken up between 100 or hell even 1000 people.
How much of a difference will it make to the income of the shareholders who voted for it?
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u/bayernfan25 Jan 13 '23
People circlejerk over a Japanese ceo doing it , but when a major American ceo does it it’s bad.
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u/chaun2 Jan 13 '23
I had to Google RIF cause I use Reddit Is Fun, and that's what RIF means to me....
For anyone else that is in the same canoe, Reduction In Force, aka layoffs
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u/tonyle94 Jan 13 '23
Good on him. Better than laying employees off.
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u/gnocchicotti Jan 13 '23
Smartphone market and PC market worldwide is absolute trash right now and projected to get worse before it gets better. To me it looks like the board is being responsible and proactive here.
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u/FartingBob Jan 13 '23
Every consumer tech company would start selling their own wet cat shit soon after anyway.
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u/TheoryOld4017 Jan 13 '23
This will have zero impact on whether Apple lays off employees or not.
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u/JustASFDCGuy Jan 13 '23
Which is fine, because his compensation adjustment has nothing to do with layoffs.
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u/Dredly Jan 13 '23
They have like 66 Billion in cash sitting in an account. Im sure they could avoid layoffs pretty easily if they wanted to
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u/FoghornFarts
Jan 13 '23
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partly based on a recommendation from Cook himself
Labor advocates have been pushing for lower CEO pay and fairer standards for compensation for a long time. Here is (seemingly) an example of that happening, and it strikes me as really weird that there isn't more appreciation for that. Instead, all the top comments are shitting on Cook.
It just makes y'all look like you're just jealous of rich people rather than actually caring about fairness or systemic change. I get this is one isolated incident, but Apple is a very successful company. I would consider them the gold standard for American S&P 500 companies. They're highly profitable, they create a very solid product, they generally treat their employees well, and they've been an industry leader in not only innovating but delivering on that innovation (looking at you Tesla!). Think about how much better life would be for Americans (both consumers and workers) if the majority of S&P 500 companies adopted similar cultural values.
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u/teddytwelvetoes Jan 13 '23
he's still getting paid 10+ lifetimes worth of money in one (1) year to watch a money printer lol
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u/jeanyanndecannes Jan 13 '23
We can simultaneously assert that executives are overpaid without pretending like they don’t do any work
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u/Hi_Im_Dadbot Jan 13 '23
Ok, that’s inaccurate. You’re forgetting all his stock options and the like which he’s able to sell in a pinch, so it’s really closer to a thousand or a million lifetimes worth of cash.
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u/9935c101ab17a66 Jan 13 '23
You can argue that executive compensation is totally insane and should be reduced across the board, but saying the man hasn’t done anything as CEO is such a brain dead take. He’s the CEO of the most valuable company on earth, and under his leadership, the growth has been literally unprecedented. The stock has delivered 1200% return over the last decade. Let that sink in for a minute.
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u/Anthonyhasgame Jan 13 '23 edited Jan 13 '23
It’s nice to see CEOs prioritize the company over themselves. This should offset some costs of China manufacturing slowdowns and moving chip manufacturing to the US. They’re also more prepared for any future issues because of that. Good move, wish we saw more of it.
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u/Hero_Charlatan Jan 13 '23
Did he donate the difference to the slaves that mine his cobalt and lithium?
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u/Yangoose Jan 13 '23
Some quick math here with very rough numbers:
Here is is total comp for the last 3 years:
- 2020 - $20 million
- 2021 - $100 million
- 2022 - $100 million
Now he's going all the way back down to $50 million.
What a fucking hero.
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u/mkitfan2 Jan 14 '23
That is something which is going to impact at the psychology of the employees.
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u/fumbling-kind Jan 14 '23 •
I don’t know why this is news.
Within the article it reads:
[“Cook has received a $3 million base salary for the past three years, but his total compensation — which includes the restricted awards — jumped from $14.8 million in 2020 to $98.7 million in 2021 and $99.4 million in 2022.”]
So he’s taking 40% pay cut not long after receiving a 667% increase between 2020 to 2021.
So yeah… how noble.