Apple Increases CEO Tim Cook’s Salary by 18% for 2024

Apple Inc. (NASDAQ: AAPL) has decided to increase CEO Tim Cook's compensation by 18% for the year 2024, bringing his total pay to $74.6 million, up from $63.2 million the previous year. This decision highlights the company's acknowledgment of Cook's contributions to its ongoing success.

Tim Cook's base salary will remain stable at $3 million, unchanged from previous years. However, Cook is set to receive $58 million in stock awards for 2024, marking a notable rise from the allocation in 2023. His total compensation package also includes $12 million in non-equity incentives and $1.52 million in additional benefits.

The decision to enhance Cook's compensation is underpinned by Apple's strong financial performance. The company reported a record $24.97 billion in services revenue during the fourth quarter, driven primarily by robust iPhone sales. This has contributed to a 12% year-over-year increase in diluted earnings per share, now standing at $0.97.

Other top executives at Apple, such as CFO Luca Maestri, General Counsel Katherine Adams, Senior Vice President of Retail Deirdre O’Brien, and Chief Operating Officer Jeffrey E. Williams, are each receiving compensation packages of $27.18 million.

Despite the increase, Cook's 2024 compensation is reduced compared to his nearly $100 million package in 2022. This adjustment follows Cook's voluntary pay cut in 2023 after receiving criticism from employees and shareholders.

Apple's compensation committee has raised Cook’s equity award target value by $10 million, elevating it to $50 million. This adjustment comes as Apple is set to hold its annual shareholder meeting on February 25, where shareholders will vote on four key proposals. One significant proposal aims to end Apple's Diversity, Equity, and Inclusion (DEI) program, which the company opposes.

The compensation increase for Tim Cook and other executives at Apple aligns with the company's strong performance metrics and strategic achievements, setting a robust precedent for the upcoming year. The annual shareholder meeting will also be a key event to watch, particularly in relation to the proposals that are up for a vote.