By Aaron Tilley
Apple Inc. Chief Executive Tim Cook has asked for a big cut in compensation this year.
Mr. Cook's total compensation target for 2023 will be $49 million, the company said in a Thursday filing. It said that is more than 40% lower than his target compensation of 2022.
The iPhone giant said its board committee on executive compensation took into consideration shareholder feedback as well as a recommendation from Mr. Cook in making the adjustment.
Mr. Cook's pay package has come under criticism before. Last year, proxy advisory firm Institutional Shareholder Services recommended that investors block Mr. Cook's pay. Nevertheless, investors voted to approve the compensation.
Apple is one of the highest-valued public companies in the world and Mr. Cook's compensation is still well above the average. The median compensation for CEOs of the largest U.S. companies was $14.7 million in 2021.
There are, however, higher-paid tech leaders. Business technology provider Oracle Corp.'s Chairman Larry Ellison and Chief Executive Safra Catz were each paid more than $138 million in total compensation in the company's fiscal year through May last year.
Apple has been facing challenges in keeping its iPhone engine running at peak capacity lately. After the release of its lineup of iPhone 14 devices late last year, its high-end pro models were hit by production snags following turmoil in a major facility in Zhengzhou, China, also known as "iPhone City."
As a result of these challenges, Apple is looking to accelerate the manufacturing of more of its gadgets in Vietnam and India, The Wall Street Journal reported.
Wait times for consumers ordering iPhone 14 Pro models reached some of the company's highest, hurting Apple's holiday quarter. Apple is scheduled to report its first-quarter 2023 earnings on Feb. 2. Its earnings were likely hurt by the production slowdowns, analysts say. They expect some demand for iPhones to be pushed to the March quarter. The iPhone still accounts for around half of Apple's overall revenue.
Apple shares are trading down about 24% over the past 12 months, while the tech-heavy Nasdaq is down around 27%.
Write to Aaron Tilley at aaron.tilley@wsj.com
(END) Dow Jones Newswires
January 12, 2023 19:09 ET (00:09 GMT)
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