Apple Inc (NASDAQ:AAPL) chief executive officer Tim Cook is facing a pay cut of 40% through a reduction to his share-based bonus or “equity reward value”.
Cook, who has worked for Apple for 24 years and headed the company for eleven, will get a base salary of US$3mln - which has been unchanged since 2016.
The tech giant will also pay US$6mln in annual cash incentives, again unchanged from last year.
However, an “equity reward system” that saw the CEO take home US$75mln in shares last year has been reduced to US$40mln.
“Balancing shareholder feedback, a desire to continue to create meaningful performance and retention incentives, and Mr Cook’s support for changes,” were behind the decision said Apple’s independent consultation committee.
“The Compensation Committee maintained the cash components of Mr Cook’s 2023 compensation and reduced his target equity award grant value” the report stated.
The California-based company’s share price has fallen by over 22% in the last year, around 8% more than the S&P 500.
Cook will now receive 300,000 shares should the price remain around the current value of US$133.
Last year, the stock was valued around US$172, meaning Cook would have received around 430,000 shares.
Apple also said four executives including chief financial officer Luca Maestri and chief operating officer Jeff Williams each earnt US$22mln in 2022.