r/technology • u/geoxol • Jan 13 '23 • Helpful (Pro) 1 Bravo! 1

Apple CEO Tim Cook to take more than 40% pay cut Business

https://apnews.com/article/technology-apple-inc-tim-cook-business-d056553b10120c4a968b562cb7ece5d2
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u/Ausgezeichnet87 Jan 14 '23

Also the paycut only applies to his "income" (the $3 mill) and not the rest of his compensation.

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u/Aurori_Swe Jan 14 '23

Which is also how Steve Jobs could afford a yacht on his 1$ salary. All of this is old news and more than common, they still make obscene amounts of money

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u/General_Asleep Jan 14 '23

Tbf Steve Job also had a lot of shares. He wasn't just a ceo he was a founder and early investor as well. He had sold most of his shares in the 90s thought.

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u/Aurori_Swe Jan 14 '23

Most CEO's that does this stunt has some form of shares in their contract anyway. It's a pretty common way to virtue signal as a CEO

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u/General_Asleep Jan 14 '23

Yeah but CEO aren't wealth like founders. Like Tim Cook, Pichai and Nadella aren't obscenely wealthy compared to Musk, Bezos or Zuckerberg.

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u/Aurori_Swe Jan 14 '23

Agreed, but he's in no direct need either :)

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u/General_Asleep Jan 14 '23

Haha yeah he definetely isn't.

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u/Tomi97_origin Jan 14 '23

Sometimes they are.

Steve Ballmer the ex-CEO of Microsoft who is currently worth ~80B. And he was worth 100B in 2021. The richest employee of all times. He made it all just from his job at Microsoft.

He currently owns more Microsoft shares than Bill Gates.

He joined Microsoft at age 24 as their 30th Employee in 1980. And he stayed with the company until he retired in 2014.

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u/General_Asleep Jan 14 '23

Oh yea definetly but he had been a ceo before the bull run and own more shares than Gates because Gates sold a lot of them. It sure is different when they are one of the first employee and have been early investor in the business.

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u/rmoodie100 Jan 14 '23

Same energy as Trump saying he’s not taking salary but pumping government money through his businesses.

Tim and Donald both take a relatively minor ding on salary for optics and end up way ahead.

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u/boblinquist Jan 14 '23

It’s not virtue signalling, it’s just tax planning. It’s more efficient to take compensation in the form of shares than as a salary.

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u/Aurori_Swe Jan 14 '23

Yeah, their internal reason is tax planning, going to the media about it is virtue signaling. Makes it seem like they are doing some grandiose gesture when in reality it has little to no impact on their finances

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u/proudbakunkinman Jan 14 '23

I think Bezos does something similar. Iirc, his salary is $90k.

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u/beryugyo619 Jan 14 '23

tbf, Steve Jobs’ yacht was much smaller and cheaper than Paul Allen’s aircraft carrier.

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u/cooluns Jan 14 '23

Look at that subtle off-white coloring. The tasteful thickness of it. Oh, my God. It even has a waterline.

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u/Opening_Criticism_57 Jan 14 '23

Well that was because he owned stock, no? So different from other forms of compensation

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u/Aurori_Swe Jan 14 '23

Yeah, just mean it's just virtue signaling at its finest. Cutting your PAY when that's a marginal amount of what you earn basically does nothing

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u/ProdigySim Jan 14 '23

That's not accurate. His compensation cut is primarily from reduction of equity award

Cook’s base salary was unchanged at $3 million, as well as a bonus of
up to $6 million. But the targeted value of his equity award will fall
from $75 million in 2022 to $40 million this year, according to Apple.

Source

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u/Different-Bet8069 Jan 14 '23

I’m happy that you provided context, but damn that’s still a lot.

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u/AggressiveBench9977 Jan 14 '23

He is the ceo of a trillion dollar company.

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u/Different-Bet8069 Jan 14 '23

It would be a trillion dollar company with or without him.

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u/AggressiveBench9977 Jan 14 '23

Maybe, maybe not. But as the head of the company his salary should reflect the growth. Which it does.

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u/Different-Bet8069 Jan 14 '23 edited Jan 14 '23

For sure, but I’m still surprised by the original 100M dollar comp plan he had originally.

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u/AggressiveBench9977 Jan 14 '23

Im assuming it was much smaller than that.

Usually you get the stock compensation award in dollars and then its turned to a number of stock.

Most likely he had a 10-20 mill award that ballooned to 100 during covid. Apples evaluation more than doubled during that period.

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u/Different-Bet8069 Jan 15 '23

That makes a lot of sense, thanks!

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u/pumpfaketodeath Jan 14 '23

Is it because the revenue is going to suck because of recession? Or stock price falling. He is actually not taking a pay cut.

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u/zaviex Jan 14 '23

It was planned to reduce.

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u/conquer69 Jan 14 '23

So he is basically shorting his salary?

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u/OneDimensionPrinter Jan 14 '23

Oh heavens no. What will he do.

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u/Status-Biscotti Jan 14 '23

Okay, well that sounds like he didn’t actually *take* a paycut - but that the company value decreased so he gets a smaller kickback??

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u/ProdigySim Jan 16 '23

Apple Stock is down but not that far down. It's about 20% down at most. This is a 45% drop in equity award.

This was a specific action taken by compensation committee / shareholders to reduce his pay package.

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u/planetaryabundance Jan 14 '23

That moment when a Redditor blatantly lies.

His 40% pay reduction is coming from his equity award, not his base salary

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u/[deleted] Jan 14 '23

It is more likely that PP made a mistake.

Being polite costs nothing. You should try it. You make every thread a little worse with your hostility and mockery.

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u/planetaryabundance Jan 14 '23

More than likely, they commented on something without having any clue what it is they’re talking about (despite the information being on the second paragraph of the article lol)

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u/aWheatgeMcgee Jan 14 '23

WSJ Article says of his total compensation package