Apple CEO takes significant pay cut to prevent mass layoffs
We have been disappointed to see a large number of Tech giants announcing their mass layoffs recently – with one exception being Apple. So far this year, at least 139,690 US workers have already been laid off, which could have been a response to over hiring during the COVID-19 pandemic and inflation.
Apple CEO Tim Cook announced last week that they have no plans for mass layoffs in the near future, and to prevent this last resort, Apple made the decision at the beginning of the year to slow down their rate of hiring and reduce costs – resulting in Tim Cook taking a 40% pay cut for 2023 after requesting it himself. A SEC filing shared that:
Mr. Cook’s 2023 target total compensation is $49 million, a reduction of over 40% from his 2022 target total compensation”.
This decision was made in response to shareholder feedback in order to protect employees and continue to support retention rates. It also seems to be a response to the current conversations surrounding the topic of income equality. It is said that CEOs were paid 399x as much as a typical worker in 2021, which is an all-time high for the tech industry.
Despite cut backs, Apple appears to be extremely profitable after releasing their earnings report for the March quarter. They have made a whopping $24 billion in profit from $95 billion in total revenue, which is positive news after Apple suffering their lowest financial blow in December 2022 since June 2021.
The Apple board have praised Cook for showcasing his priorities and his long term strategic leadership decisions during a financially challenging period.
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