Apple hikes CEO Tim Cook’s compensation 18% to $74.6 million, blocks anti-diversity proposal ahead of AGM
Apple Inc. announced an 18% pay increase for CEO Tim Cook, raising his compensation to $74.6 million for 2024. The company also opposed a shareholder proposal to end its diversity program, asserting it does not discriminate and already assesses legal risks.
Tech giant Apple Inc. hiked CEO Tim Cook's compensation package by 18 per cent to $74.6 million in 2024, citing an increase in his stock award value, according to a Bloomberg report. The decision comes ahead of the company's Annual General Meeting (AGM) on February 25, 2025. Investors are set to vote on four outside proposals at the meeting including Cook's salary.
Apple has however opposed all of the other proposals, the report noted. Among the proposals blocked include a shareholders' proposal to end the company's diversity, equity and inclusion (DEI) program, it added.
Tim Cook's Pay Hike
In a proxy filing on January 10, Apple stated that Cook's pay increased to $74. million in 2024 compared to $63.2 million in 2023. It cited the raise largely to an increase in stock award value.
A breakdown of Cook’s pay in 2024 showed that it comprised of: Base salary of $3 million, stock awards worth $58.1 million, and additional compensation of around $13.5 million.
While a hefty hike from 2023, this is still lower than Cook’s 2022 salary of close to $100 million — which skyrocketed due to the stock awards in his compensation package, as per the report. He offered to take a pay cut in 2023 after pushback from employees and shareholders.
Apple’s board of directors (BoD) said it “made no changes to the amount or structure of Cook’s 2025 total target compensation.”
Besides Cook, other Apple executives, including its retail chief, former CFO, COO and general counsel, all got pay over $27 million in 2024, representing slight increases from the prior year, as per the report. Luca Maestri, the ex-CFO, was recently replaced as by Kevan Parekh.
Apple's Decision on Diversity Program
Meanwhile, shareholders have urged Apple to consider abolishing its DEI program because it may discriminate against employees and draw lawsuits. However, the company rejected this and said the proposal was an inappropriate attempt to restrict Apple’s business operations and that it already assesses legal and regulatory risks.
This comes as a departure from several United States companies, including major names such as Harley Davidson, McDonald's, Meta, and Walmart, among others, who have either cut or abandoned their diversity programmes ahead of the Donald Trump administration.
(With inputs from Bloomberg)
Key Takeaways
- Tim Cook’s compensation reflects a significant increase in stock award value, despite previous pushback from employees and shareholders.
- The blocking of a proposal to end Apple’s diversity program underscores the ongoing debate around corporate responsibility in diversity and inclusion.
- Apple continues to face scrutiny over executive pay versus employee satisfaction and ethical business practices.
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Business NewsCompaniesNewsApple hikes CEO Tim Cook’s compensation 18% to $74.6 million, blocks anti-diversity proposal ahead of AGM
First Published:11 Jan 2025, 10:58 AM IST
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