Tim Cook has asked Apple to cut its pay by 40 percent this year, according to Apple. The request is a response to criticism from investors. They believe that the salary of the top executive is too little dependent on the performance of the company.
Despite the reduction, Cook is still richly rewarded. If he meets the necessary targets, he could still face 49 million dollars (45.2 million euros).
The remuneration is mainly paid in the form of share packages. As a shareholder, Cook receives a profit share that can add up quite a bit. Apple is a very profitable company. Last year the net profit came to almost 100 billion dollars.
Apple has recently been criticized by several major investors over the huge compensation for Cook. According to the financial consulting firm ISS, half of the top executive’s salary does not depend on performance goals. Cook would get that bonus anyway.