Most recently, it's started to add privacy features to paid iCloud accounts. It's also bundling its services in a subscription called Apple One. Apple first started to call attention to the previously sleepy category in 2015 as iPhone growth slowed.Īpple has started to release new products to bolster its services that bill on a recurring basis, including Apple News+, a digital magazine bundle, and Apple TV+, a competitor to Netflix. The catch-all category includes software subscriptions like iCloud and Apple Music, App Store downloads and a portion of transactions users make in the apps they download, AppleCare warranties, money from Google to make its search engine the default on iPhone, and cuts from its Apple Pay payments service. One thing propelling Apple's market cap is the company's new focus on its services business. In September, Apple's board granted Cook shares and performance-based awards that could give him more than 1 million Apple shares through 2026, his first stock grant since he took over.Īpple is the most valuable publicly traded company, worth more than $2.4 trillion, edging out other giants such as Microsoft and Amazon. Ultimately, Apple's board is happy with Cook and his performance. Since 2011, the company has released several new products, including the Apple Watch and AirPods.Ĭook's Apple is significantly bigger than it was when he took over, and it also faces new challenges, from navigating politics around the world to the perennial question about what its next big product is. Under Cook, Apple shored up the iPhone business and bolstered it with a constellation of new products that attract new customers and entrench current customers in Apple's world. Personal Loans for 670 Credit Score or Lowerīut Cook says that Jobs told him to be his own leader, and never to ask "what would Steve do?" He took that advice, building a rigorous operational juggernaut and turning Apple into the most valuable publicly traded company in the world. Personal Loans for 580 Credit Score or Lower It is, after all, uncommon for an executive his level to recommend that their own pay be cut.Best Debt Consolidation Loans for Bad Credit This shift in Cook's compensation reflects the changing attitude towards executive pay, and the CEO might be setting an example for his peers. "Half of the award lacks performance criteria," the firm previously said. Critics like advisory firm Institutional Shareholder Services previously urged shareholders to vote against Cook's pay package, citing concerns about how big his equity award is and how it's structured. In 2021, his total pay package was $98.7 million. According to Bloomberg, he earned $99.4 million in 2022, which was $15.4 million more than his target salary for the year. The truth is that Cook, who vowed to donate his fortune to charity a few years ago, will likely earn more than $49 million this year due to stock awards and bonuses. Further, he was granted an equity award that's 75 percent performance and 25 percent time-based vesting, instead of 50-50 like 2022's. His base pay is still $3 million and his annual cash incentive remains unchanged at $6 million, but his equity award value went from $75 million in 2022 to $40 million this year. To decide this year's pay packages, Apple's Compensation Committee took into account the Say on Pay's voting results and Tim Cook's own recommendation "to adjust his compensation in light of feedback received." For 2023, Cook's target salary is $49 million, down $35 million from his target salary in 2022. As 9to5Mac notes, 94.9 percent of the shareholders who voted the previous year was in favor of the compensation proposals for executives. While that's still majority of the votes, it represents a significant year-over-year decline in approval. Apparently, during the tech giant's annual advisory meeting for shareholders in 2022, only 64 percent of the "Say on Pay" votes cast regarding the compensation proposals for executives was in favor of retaining their 2021 pay packages. Tim Cook is getting paid around 40 percent lower than last year, according to the annual proxy statement (PDF) Apple has released - and the CEO himself recommended it.
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