Apple CEO Tim Cook Taking Substantial Pay Cut in 2023 After Earning Nearly $100 Million Last Year

[Abazigal]

I don’t care how much he gets paid but Apple for sure can afford to pay a better dividend to its shareholders…

That's what share buybacks are for. It increases the stock price, and shareholders can cash out by selling their stock. Unlike dividends, this allows shareholders to defer the tax on their earnings to a date of their choice.

They pretty much serve the same purpose here of returning excess profits to stakeholders.

 

[Juicy Box]

What supply chain nightmare over the years that has served apple well?

Apple and TC chose short-term gains by taking advantage of the cheap labor in China rather than moving and investing elsewhere.

Apple is trying to move elsewhere now, but if TC was the supply chain wizard that people pretend he is, Apple would have done this a long time ago, and the supply chain nightmare would just be a speed bump for them.

And in more recent times have hit multiple industries?

You are right, but the hit has been especially hard on the tech sector due to their reliance on cheap labor in China. Apple has pretty much been the poster child for the consequences of the over-reliance on China.

 

[msackey]

Oh no. Let’s start a GoFund me for Tim. Sending thoughts and prayers.

Right? Substantial pay cut. Pfffftttt. 🙄

TBH, no one should be making that much…

 

[Doomtomb]

If we use Cook's 2022 compensation vs avg Apple employee compensation numbers: $143,362/yr get CEO:avg ratio of 693.3:1
This new 2023 compensation brings it down to 342:1

 

[Dan From Canada]

So that's why Apple stuff is so expensive?

 

[JosephAW]

This is a dumb question but when a new iPad or Mac comes out does he still have to go online or to the Apple Store to buy a new device for him or his family? Or does he just go somewhere and grab them from stock?

 

[trhoffmann]

I don’t care how much he gets paid but Apple for sure can afford to pay a better dividend to its shareholders

As an AAPL shareholder, I would prefer Apple to redirect the tens of billions of dollars it allocates for stock buybacks every year and use them to increase the dividend instead.

 

[Piscestg]

"The global challenges with us all today....." Wait, so globalization isn't the greatest thing ever?

 

[Mr. Dee]

Is Tim looking for any nephews to adopt?

 

[krell100]

Considering Tims push in to China and how that has blown back so badly on Apple I'm surprised he's still there.

 

[Carnegie]

The way this kind of information gets reported in proxy statements is a bit misleading. This isn't about how much compensation Mr. Cook received last year or the year before or how much he will receive this year. Most of what makes up these totals are grant-date valuations of new RSU grants which Mr. Cook won't receive shares from until years in the future. Those valuations don't reflect either the amount of stock compensation Mr. Cook actually received in the reported years or what the stock compensation he will get in the future will actually be. These numbers, e.g., aren't what - or in many cases even close to what - did or will get reported to the IRS as income.

In (Apple's fiscal year) 2020, e.g., Mr. Cook received more than $280 million (pre-tax) in stock compensation rather than the $0 reported in this proxy. In 2021 he received more than $750 million rather than the $82 million reported in this proxy. In 2022 he received none rather than the $83 million reported in this proxy. In 2023 he's set to receive in the ballpark of $15 million in stock compensation. (For calendar year 2023 the number, at current share prices, would be closer to $60 million.) But that's not because of some recent intentional reduction in his compensation, it's because of the timing of RSU grants from several years ago. His compensation will (likely) go back up in subsequent years and the effects of the RSU grant value reduction referred to in this proxy won't be seen until 2025-2027.

 

[I7guy]

Apple and TC chose short-term gains by taking advantage of the cheap labor in China rather than moving and investing elsewhere.

Apple is trying to move elsewhere now, but if TC was the supply chain wizard that people pretend he is, Apple would have done this a long time ago, and the supply chain nightmare would just be a speed bump for them.

It's a possibility there was no escaping the events of 2020 and 2021 for all companies. Everybody will have their own view of Tim Cook's supply chain wizardry.

You are right, but the hit has been especially hard on the tech sector due to their reliance on cheap labor in China. Apple has pretty much been the poster child for the consequences of the over-reliance on China.

And so have the car companies, electronics companies, food industry and etc. Many items in the iphone are made outside of China.

 

[tridley68]

Good maybe this will be an insensitive to start being more innovative instead of traveling the country shaking hands and kissing babies but he will manage just fine might be a little hard for him to adjust but he will

 

[Digital Dude]

Even with a pay cut, Tim is still tighter than a cats meow. 😼

 

[JapanApple]

MMMMMMMMEOW........Doesn't matter to me. I am happy with my iPhone. He runs the company he gets paid.

 

[DaPizzaMan]

$50 million less in his compensation means nothing to a company like Apple. Im in different to his pay. They could pay him 300 million for all I care.

That's a $5,000 bonus for 10,000 employees.

 

[tgwaste]

I would had told the share holders to stuff it and took another 100 million. Are they a charity? LOL

 

[anthogag]

I suspect he took a pay cut because he can't figure out what else he needs to buy. Mo money mo problems. 💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵🤭

 

[Juicy Box]

It's a possibility there was no escaping the events of 2020 and 2021 for all companies.

No doubt there would be some impact, but the supply chain problems that Apple has were not created by the events of 2020 and 2021, those problems were already in place just waiting for something to bring them to the surface.

A supply chain wizard would have contingencies, TC didn't. He just took credit for the short-term gains that not preparing for contingencies provided.

Many items in the iphone are made outside of China.

Diversifying component manufacturing definitely plays a part, but it doesn't matter if ALL the iPhone components are made outside of China if Apple still depends on China for a large portion of their iPhone assembly.

The short-term gain of cheap labor and the lack of labor rights/laws in China was too much for TC (and other tech companies) to resist.

 

[mashinhead]

It's incredible to me that this guy claims he admires MLK, when MLK would probably be in the streets today pushing against people like Tim Cook. Something in that story isn't being heard by Timmy.

 

[Wildkraut]

I'm curious! How much a lunch is worth with Mr. Tim Cook in 2023?

View attachment 2141227

Apple CEO Tim Cook Auctions Charity Lunch at Apple Park

Apple CEO Tim Cook is partnering up with Charitybuzz for the fifth year in a row, offering Apple fans the chance to bid on a lunch with Cook where...

www.macrumors.com

$0 to me.
Not going to lunch with him, even if I get paid, but i wouldn’t say no to prank him.

 

[JapanApple]

I suspect he took a pay cut because he can't figure out what else he needs to buy. Mo money mo problems. 💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵🤭

well, so many iphones and ipads and apple watches you can own. without owning a small island to put them on 🤪

 

[greatstar]

He had a contract… board signed off on it. Based on it he helped make a lot of money for a lot of people. Given the optics and the economy (now and predictions) he is cool with reworking compensation to what feels more appropriate (for his position and the moment). This is consistent with Mr. Cook’s character and leadership. It’s petty to snark. How much relative to profitability did some other tech leaders make last year? Did they take a cut?

Agreed. I think Apple is still the best led and managed consumer electronics company and would happily buy more stock if possible. Adjusting compensation reflects a company still moored in reality and (relatively) values driven. Having said that, I think Apple should adopt the RCS messaging standard....

 

[Kierkegaarden]

I would say most, if not all, CEOs would not agree to this cut. Tim is clearly not motivated by money. He is the head of a $2T company, and considering his performance over the last 10 years, he should be well compensated.

 

[Mrkevinfinnerty]

Good maybe this will be an insensitive to start being more innovative instead of traveling the country shaking hands and kissing babies but he will manage just fine might be a little hard for him to adjust but he wil

He didnt?!