r/technology • u/geoxol • Jan 13 '23 • Bravo! 1 Helpful (Pro) 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/fumbling-kind Jan 14 '23 • Silver Take My Energy Plus One

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.

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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/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.