Tim Cook takes a $35 million pay cut that he recommended

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The Apple CEO’s target compensation will be lowered by more than 40 percent in 2023, according to the company’s latest proxy filing.

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Apple CEO Tim Cook is taking a big pay cut — at his own recommendation. Cook’s target compensation will be decreasing by $35 million, according to a new regulatory filing, dropping from $84 million in 2022 to $49 million in 2023. That’s a drop of more than 40 percent.

The changes come entirely from an adjustment in his equity award value, which makes up the bulk of Cook’s total compensation. In 2022, that value was estimated to be worth $75 million, but this year, that estimate drops to $40 million. His base salary of $3 million and his annual cash incentive of $6 million will remain the same. Bloomberg reported the pay cut earlier on Thursday.

To set Cook’s new pay, the compensation committee on Apple’s board “balanced shareholder feedback, Apple’s exceptional performance, and a recommendation from Mr. Cook to adjust his compensation in light of the feedback received.” In reality, his 2023 compensation could differ; Cook actually made $99.4 million in 2022, according to the filing.

While Apple continues to be quite successful, its market cap has dropped $1 trillion from its peak a year ago, and the company has been facing some production challenges with its cash cow, the iPhone. There is also some worry about the company’s future big bets. The long-rumored mixed reality headset still hasn’t been officially announced (though that may finally happen this spring). The Project Titan car project is reportedly still years away, and according to a December Bloomberg report, it will now be arriving a year later than originally planned. And Apple is facing the same economic challenges affecting other big tech firms, which have resulted in massive layoffs at companies like Meta and Amazon.

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