Apple approves a new policy and reduces the wages of its CEO. He now earns $49 million after deducting 40% of his salary.

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Tim Cook
Apple CEO Tim Cook

The value of the financial compensation allocated to the CEO of the American company Apple , Tim Cook, for the year 2023, decreased to $49 million, which is 40% less than the compensation allocated to him in 2022, in light of the man’s calls for a significant reduction in bonuses for this year, according to The newspaper. American Wall Street Journal . 

On Thursday, January 12, 2023 Apple announced an amendment to the Board of Directors Committee on Compensation for Executive Directors that was taken into consideration after shareholders comments and a recommendation from Cook.

In order to comply with investor feedback, while also fairly rewarding exemplary leadership from Steve Cook, the company’s filing indicated that there would be modifications made. These evolutions will ensure remuneration is in harmony with performance levels and bestow a sense of achievement on those deemed deserving.

Criticism of Cook’s salary

Cook’s wage has been the subject of criticism in the past. Last year, proxy advisory firm Institutional Shareholder Services suggested that shareholders should not approve his salary. Despite this, investors eventually voted to give him a generous cash reward.

Apple is one of the most valuable public companies in the world, and the payments Tim Cook receives are still well above average. The average financial compensation for CEOs of major US companies was $14.7 million in 2021.

However, there are higher-paid tech leaders. Oracle business technology chairman Larry Ellison and CEO Safra Katz each received more than $138 million in total compensation for the company’s fiscal year ending in May of last year. .

Apple sales soar

Apple store / Shutter Stock

In the September quarter, Apple’s business proved resilient, while broader economic challenges held back many of its tech peers.

Apple’s overall sales were up 8% year-over-year at about $90 billion, a record for that quarter. The company’s total revenue, iPhone sales and net income also exceeded analysts’ estimates for the same quarter.

In the same quarter that ended in September, tech giants Amazon, Microsoft, Google Inc’s Alphabet and Facebook’s parent company, Meta Corp., said they were facing slowdowns in some consumer orders and weak digital advertising.

Many big tech companies have been looking for ways to cut costs while cutting headcount and cutting back on some of the massive hiring in recent years.

Last week, Amazon announced more than 18,000 layoffs, the highest rate of layoffs reported in the past year at a technology company, but no such deep cut has been announced by Apple.

Apple has had challenges keeping its own engine, the iPhone, running at full capacity lately. After launching the “iPhone 14” lineup late last year, its lineup of high-end professional “iPhone Pro” phones hit production hurdles after disturbances at a major facility in China’s Qingzhou Province, also known as “iPhone City.”

Analysts were lowering their estimates about Apple’s revenue for the quarter ending in December 2022. And in October of the same year, analysts expected to achieve an average of $ 127 billion in quarterly sales.

They now expect $123 billion in sales for the quarter, according to median estimates on software company FactSet .

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