Apple Inc. recently revealed an 18% increase in Chief Executive Officer Tim Cook’s compensation for 2024, bringing his total pay to $74.6 million. This disclosure was made in the company’s annual proxy filing ahead of its annual shareholder meeting scheduled for February 25th. The filing also indicated Apple’s opposition to a shareholder proposal aimed at dismantling the company’s diversity, equity, and inclusion (DEI) program.
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Cook’s compensation in 2024 significantly contrasts with the $63.2 million he received in the previous year. The increase primarily stems from a rise in stock award value, which constitutes a major portion of his overall pay package. His 2024 compensation comprised a $3 million base salary, $58.1 million in stock awards, and approximately $13.5 million in additional compensation.
Analyzing the Increase and Shareholder Concerns
While Cook’s 2024 compensation represents a substantial increase from 2023, it remains considerably lower than his nearly $100 million total compensation in 2022. That year, significant stock awards contributed to the higher figure. Following pushback from employees and shareholders, Cook voluntarily reduced his pay in 2023. Apple’s board of directors stated that no adjustments were made to the “amount or structure” of Cook’s target compensation for 2025.
The shareholder proposal targeting Apple’s DEI program alleges potential discrimination against employees and the possibility of ensuing lawsuits. The proposal urges the company to consider abolishing the program altogether. In response, Apple contends that the proposal constitutes an inappropriate attempt to interfere with its business operations and asserts that it already conducts thorough assessments of legal and regulatory risks associated with its DEI initiatives. In addition to executive compensation and the DEI proposal, investors will vote on three other outside proposals at the upcoming annual meeting, all of which Apple opposes.
Executive Compensation at Apple
Beyond Cook’s compensation, other key executives at Apple also saw increases in their 2024 pay. Several high-ranking officials, including the retail chief, former chief financial officer Luca Maestri, chief operating officer, and general counsel, each earned over $27 million. These figures represent slight increases compared to the previous year. Recently, Kevan Parekh succeeded Maestri as Apple’s chief financial officer.
Looking Ahead to the Shareholder Meeting
The upcoming shareholder meeting promises to be a significant event for Apple, with investors set to vote on several crucial issues, including executive compensation and the future of the company’s DEI program. The outcome of these votes will likely have significant implications for Apple’s future direction.
