January 16, 2023: Apple CEO Tim Cook will be getting a pay cut to $49 million in overall compensation, the firm said in a filing with the SEC.

Cook requested the change, Apple stated in the filing, after a shareholder vote on his pay package. The firm also reduced the number of restricted stock units Cook would get if he retires before 2026.

In 2022, Cook made under $83 million in stock awards, $12 million in incentives, and $3 million in salary. He benefits from retirement plan contributions, personal air travel, and over $46,000 in vacation cash-out.

Apple’s compensation committee said it changed in response to last year’s say-on-pay vote; 64% of shareholders approved Cook’s compensation from 95% supporting it for Apple’s 2020 fiscal year.

Still, Apple’s board completed Cook’s performance and stated that it has confidence in the CEO’s long-term strategic decisions.

Executive compensation is coming under surging pressure from institutional shareholders. Institutional Shareholder Services suggested that Apple shareholders vote against Cook’s pay package in the year’s annual meeting.

The compensation committee, which includes Art Levinson, Al Gore, and Andrea Jung, added that it reached out to institutional shareholders to gauge how they thought about Cook’s pay.

“Based on these vital conversations, we have made the differences to the size and structure of Tim’s 2023 compensation,” the committee stated.

“Taking into consideration Apple’s comparative size, scope, and performance, the Compensation Committee intends to position Mr Cook’s annual target compensation amid the 80th and 90th percentiles relative to my primary peer group for future years,” the committee said.

Cook is paid primarily on restricted stock units. The actual amount of shares of Apple stock that Cook vests depends on Apple’s performance versus the S&P 500. Apple’s store has done well enough that Cook typically vests the maximum amount.

Since Cook more as CEO in 2011, Apple stock has returned 1,212% versus 290% for the S&P 500, Apple said.

In addition, 75% of Cook’s vesting shares will be tied to Apple’s stock performance in 2023 instead of 50% to decrease the total target.