Apple CEO Takes Pay Cut: Here’s Why Tim Cook’s Salary Shrunk

Apple CEO Takes Pay Cut: Here’s Why Tim Cook’s Salary Shrunk

Former Vice President Al Gore has also made the decision to retire from Apple’s board of directors.

In the latest fiscal year, Apple CEO Tim Cook experienced a reduction in his pay, a result of shareholder guidance and a personal “recommendation” from the executive himself. According to a filing with the Securities and Exchange Commission, Cook’s annual compensation dropped from $99.4 million in the 2022 fiscal year to $63.2 million.

For the fiscal year ending on Sept. 30, Cook’s target compensation decreased to $49 million, marking a more than 40 percent decline from the CEO’s 2022 target compensation. Consequently, Cook’s performance-based stock awards saw a rise to 75 percent.

During the same fiscal year, Cook received a $3 million base salary, along with $47 million from stock awards. Additionally, he earned $10.7 million from non-equity compensation and $2.5 million in other compensation, primarily related to security costs.

Comparatively, in the 2022 fiscal year, Cook’s earnings included a $3 million base salary, approximately $83 million from stock awards, $12 million in non-equity compensation, and $1.4 million in other compensation.

In 2021, Cook had received a total of $98.7 million.

Apple reported record revenues for the September quarter, particularly in iPhone sales and its services business. Cook remarked in November, “We now have our strongest lineup of products ever heading into the holiday season, including the iPhone 15 lineup and our first carbon-neutral Apple Watch models, a major milestone in our efforts to make all Apple products carbon neutral by 2030.”

The company also announced that former Vice President Al Gore, a board member since 2003, and another director, James Bell, are retiring after the upcoming shareholder meeting. Wanda Austin, former CEO of The Aerospace Corporation, has been named as a new board member. Cook expressed gratitude to Gore and Bell, stating, “Their insights, energy, and values have made us a stronger company in so many ways.”

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