Apple CEO Tim Cook to take massive pay cut this year, here is how much is his salary

By Sneha SahaTech giants like Google, Twitter, Meta, and many others have laid off thousands of employees in the last couple of months. There are very selective tech companies that haven’t opted for layoffs yet, among these is Apple. The Cupertino-based tech giant hasn’t announced mass layoffs yet, instead, CEO Tim Cook is taking a large salary cut.

Earlier this month, there were reports about Cook taking pay cut. The shareholders during the annual meeting have officially confirmed that Cook is indeed taking a pay cut. The proxy statement filed by Apple revealed that Cook’s target compensation in 2023 would be $49 million in 2023, which is around 40 per cent less than what the Apple CEO earned in 2022.

“Mr Cook’s 2023 target total compensation is $49 million, a reduction of over 40% from his 2022 target total compensation. Taking into consideration Apple’s comparative size, scope, and performance, the Compensation Committee also intends to position Mr Cook’s annual target compensation between the 80th and 90th percentiles relative to our primary peer group for future years,” Apple noted in the proxy statement filing.

It is said that Cook himself recommended the pay cut to the Compensation Committee at Apple. “The results of the 2022 Say on Pay advisory vote led to broader shareholder engagement on executive compensation in 2022 of approximately 53% of institutional shares held. The Compensation Committee balanced shareholder feedback, Apple’s exceptional performance, and a recommendation from Mr Cook to adjust his compensation in light of the feedback received,” Apple further noted.

For the unaware, Cook had a target compensation of $84 million in 2022. In 2023, $49 million compensation will include a base salary of $3 million and a $6 million annual cash incentive. In addition, Cook will also get an equity award value of $40 million, which was $75 million in 2022.

Well, besides Cook, Google CEO Sundar Pichai is also said to take a massive pay cut after laying off thousands of employees. During a recent town hall, Pichai announced that all roles above “senior vice president” level will witness a significant reduction in their annual bonus. Though he didn’t specify his pay cut, the statement clearly hints Pichai taking a salary cut as well.

“All roles above the senior vice president level will witness ‘very significant’ reduction in their annual bonus. For senior roles, the compensation is linked to company performance,” Pichai said during the recently held town hall. The Google CEO didn’t reveal details about the percentage of salary that will be cut and for how long.