Entering text into the input field will update the search result below

Apple CEO Tim Cook asks for a big cut in compensation

Jan. 13, 2023 4:18 AM ETApple Inc. (AAPL)By: Yoel Minkoff, SA News Editor113 Comments

Apple Remodels Its Flagship Store The Grove In Los Angeles

Mario Tama

Say-on-Pay votes rarely get internalized by company executives and the board, but something new is brewing at Apple (NASDAQ:AAPL). The compensation committee and CEO Tim Cook have decided to reduce his annual compensation by 40% for 2023

Recommended For You

Comments (113)

Have a tip? Submit confidentially to our News team. Found a factual error? Report here.

Datsyuk13 profile picture
Yeah complain about a dude who’s actually worth more than what he gets paid already - at least relative to those other guys.
As AAPL shareholders, we need to have Tim Cook around to resolve the worldwide supply chain issues. He is one of the best in the world on logistics. What is that skill worth to Apple?

Hint: A lot.
how many who complain about this salary cut would have done the same? This does not happen often and most people would just carry on. In my view, this is an admirable action and as a shareholder I am pleased with what it signals about his concern for the company.
@TFnewbie I wish he had gotten a raise instead.
SuperPac profile picture
''While his $3M base salary and $6M bonus will remain the same, the total amount of equity awards available will decrease from $75M to $40M, putting his total payout target at $49M.''
We will soon have lumpen proles here shedding tears for TC.
eeeW profile picture
13 Jan. 2023
he has reduced his fancy clothing spending habits [sarcasm, the man dresses like a robot]
Danoxx profile picture
@eeeW The only key is that he’s in good shape for his age (no potbelly) what he dresses like who cares.
berylrb profile picture
@Danoxx I'm just amazed at some of these comments on SA that somehow think petty barbs are investment worthy. I'm actively looking for a forum that stays on point and doesn't devolve to juvenile antics and tactics.
john.fAIrplay profile picture
This will mean millions less in taxes for California to deal with its gigantic homeless/hungry problems. How many will die because Mr. Cook bowed to left-wing pressure?
berylrb profile picture
@john.blockchain (aka Fairplay) Wow, are you really narrowing the concerns of a great state like CA down to one issue -- homelessness!

I live in CA right next to the American River, and yes there are a few homeless camps, at least there was until the flooding started. We have currently lost more lives due to flooding than we did all summer due to wildfires.

We have roads that are just gone, they just melted away. We have bridges that will take years to rebuild because the foundation is shot. We have $billions in dollars of homes/businesses that are beyond mere restoration services.

We finally are becoming unified around the need for storm water reclamation projects and on the cusp of ending juvenile fights over snow run-off. Finally we are looking past myopic one issue agendas and seeing that our great state is constantly fighting on multiple fronts season after season.

But if helps your ego keep focusing on one-off issues.
While I can admire some of what Cook did, I can't say I'm impressed with it. I can find no way that anyone, no matter how effective they are, is worth 1447 times more than the average worker who actually makes Apple work. Somehow that makes no sense to me. You can say that no one else can do the job as effectively, but that flies in the face of common sense as there are numerous CEOs who could do a fine job running Apple.

One problem I have with the pay of CEOs is that the pay is a result of a "good old boys" network that basically scratches each others back. The boards are stacked with people who will support the pay for the CEOs no matter what, with no sense of responsible governance.

Probably get a lot of disagreement with this, but it's hard for me to imagine anyone being worth that much more than the people that actually make the company run.
eeeW profile picture
13 Jan. 2023
@tbooth5 agreed here
deercreekvols profile picture

Tim Cook taking a 40% cut in compensation and will still take in $49 million. Outrageous! Overpaid for running the most valuable company in the world. Right?

Until you see these salaries for one year of work: Russell Wilson- NFL QB: $53 million; Matthew Stafford- NFL QB: $51.1 million; Aaron Rodgers- NFL QB: $66.9 million; Stephen Curry- NBA: $48 million; LeBron James- NBA: $44.5 million...sure, sports fans can make an argument for what market value is until this salary is seen...Russell Westbrook- NBA: $47 million...If Russell Westbrook is getting that salary this year, Tim Cook is underpaid...by a lot.
@tbooth5 I agree with Deercreek. Tim Cook is underpaid and deserves a raise.
Now imagine what footballers are paid for kicking a ball!
@Demurgetroid They actually demonstrate an extremely unique level of skill. CEO's hardly ever do. And if they do, it's not multiples like 1000x of the other smartest employees at their firm unlike that truly very rare athletic ability possessed by the greats.
Danoxx profile picture
@MiamiInvest305 Tim’s retirement bonus will be massive, he won’t lose a penny.
@Danoxx that’s good to know. He certainly deserves a lot more!
InvestingForFuture profile picture
Well, now that his cumulative compensation has set him up for life 100x over, he can afford to virtue signal that he wants a reduction in compensation. I'm not saying he didn't deserve what he was paid because he has done a fantastic job leading Apple to where they are today.
FirstFIREWealth profile picture
A great Democrat.
smadadet profile picture
He should get a 100% cut by being fired for the failed "everything made in Asia and nothing in North America" sourcing strategy that has put the entire company at risk.
ContyC profile picture
@smadadet But that strategy has made the company the biggest and most profitable in the world. It has not been a bad strategy.
@ContyC Its terrible for Americans though. And you should take excellent care of your own nation and its peoples as part of an ethical corporate doctrine.
bart_sst profile picture
@smadadet : "for the failed 'everything made in Asia and nothing in North America' sourcing strategy"

There is not now nor has there ever been such a strategy, smadadet. Disabuse yourself:



TigerCub911 profile picture
A great leader indeed. Leading by example. Exemplary!
Tim Cook is taking quite a hit - going from $1.5 Million per week to only $1.0 Million per week. Gotta feel bad for the guy......
@GTMoore56 Tim Cook has signed on with the Giving Pledge, so this reduces the legacy that he will be able to leave. So yes, you are correct that it is quite a hit.
Cook has done a great job of monetizing apple and its customers, but that only goes so far before real damage is done. I Google searched cloud vendors, apple not even in the top 11 of results. On my 3rd apple computer, $3000 MBP. It stinks!!!!!!!!!!!!!!!!!!! and each update makes it worse! There is no quality control any more now that Steve Jobs is gone. True innovation is gone and replaced by cheap social media fluff. Next computer I'll make the painful transition back to PC's for good and good riddance cook and apple!
deercreekvols profile picture

Steve Jobs passed away in 2011.

Are you suggesting that for the last 12 years Apple has not had quality control?
@ctclark99 Yup. My M1 MBA has been the worst apple product I've owned, aside from the prior 2018 MBP which needed the keyboard replaced from that other fiasco. My old MacBooks worked for ages like champs with no issues. QC has def gone WAY down.
@deercreekvols They def do, he's suggesting that QC has gone down markedly in last 12yrs considering the crazy high bar Apple had set under Jobs. And indeed it has.
DavyJ profile picture
That $49 million divided by 1.6 billion shares equates to 3 cents per share. That's Cooks take. Shareholders receive dividends of 92 cents per share per year.

Or compare that 3 cents to the gain in share price he has given to shareholders over his tenure. Even if you only started with one share which, due to splits, you would have 28 shares.

If you're an employee and were not investing in the company, you were doing it wrong.

I'd say Cook definitely earns his money.
VoiceofSanitySometimes profile picture

16 billion shares outstanding, not 1.6. So 0.3 cents per share, not 3 cents.
DavyJ profile picture

Thanks for the correction.

Now I'm thinking Tim needs a raise. How about a penny a share? :)
VoiceofSanitySometimes profile picture

I think Cook has done a fine job negotiating his pay and bonuses, but if you want to offer to be his agent... :)

More generically, you and I agree that CEOs of highly successful companies deserve what they get paid, and Cook is certainly that. It's when the CEOs of poorly run companies ask for big bucks that I get annoyed, and even more so if the Board gives it to them...
Who Dat? profile picture
All CEOs should do the same before cutting staff.
Doctor_ECE_Prof profile picture
What is new here (the total amount of equity awards available will decrease from $75M to $40M, putting his total payout target at $49M.)? They are quoting a dollar figure and not the number of stocks.
AAPL stock got a 30% haircut and so is he, technically; but he will get the same number of stocks!
Sounds like the middle eastern camel story of loading the camel with too much and removing some to please the camel. Here they are making the AAPL fanboys by deceptive words :)
I saw Tim at Walmart the other day.
@King_Crab77 Aldi is way more cheaper.
Harmon E profile picture
@King_Crab77 this is why I read the comments
Because earnings will suck?
VoiceofSanitySometimes profile picture
Good PR move, both by Cook and the Apple Board. It shows they aren't tone deaf to investors.

When this dip in AAPL shares is over, the Board can award Cook whatever he missed out on and no one will complain.
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.