From Jason Aten's "Why Tim Cook's $50 Million Pay Cut Is His Smartest Leadership Move Yet" posted Saturday by Inc.
Tim Cook is, arguably, the most successful CEO of his generation. For that matter, he's probably the most successful CEO of any generation. Under his leadership Apple grew from a reasonably successful company with a still relatively new hit, the iPhone, into the world's most valuable and most profitable company, ever.
A large part of that success has come from Cook's unique set of skills that have led Apple through various challenges over the past decade. As a result, he has been rewarded with what can only be described as a very generous compensation package, especially over the past few years.
His pay was just under $15 million in 2020, but it jumped to more than $98 million in 2021, and $99.4 million in 2022 when you add up his salary and stock awards. While he isn't the highest paid CEO in the world, he's doing just fine.
This year, however, as Apple prepares for its annual shareholder meeting, Cook is taking a pay cut. It's worth mentioning that the pay cut isn't in response to Cook's performance... It also seems worth mentioning that--according to Apple--Cook himself recommended the change. "The compensation committee balanced shareholder feedback, Apple's exceptional performance, and a recommendation from Mr. Cook to adjust his compensation in light of the feedback received," the company said in an annual filing released Thursday.
My take: Tim Cook didn't get where he is today without knowing how to read a room.
But beyond that, Mr. Cook is making a massive statement to Apple employees, especially the richly rewarded ones: Earning money isn’t the only reward for working at Apple. Just as important is being part of something that’s making a profound difference in the world. That’s the buried implication
And he’s also speaking to us, the Apple owners. He’s reminding us that we are also part of the team, and that the financial reward we receive is likewise enhanced by being part of something meaningful.
Bravo, Mr. Cook!
Tim sends message, about values. It’s never about the most, it’s about the best, doing the best job you can, being the best person you can be.
This goes deep in the organization ensuring quality decisions, keeping bad actors in check. Can anyone imagine Apple having the kids of smog cert scandal that plagued VW and the top management?
Now, as recessionary fears are setting in, things could get ugly. As the blood starts to build behind the dam, potentially flowing out into the streets, it’s is wise for the oligarchs to bring themselves down from the heavens. I don’t know how many people we’ve lost in my office just yet, but even on Friday, in a new quarter in a new year, we had a cull. It’s despicable.
Tim is wise to read the room, as PED suggests.
Plus, it’s not like he’s hurting with his current package.
I applaud his “sacrifice”, but I think it’s meaningless. It makes me think of the overweight woman ordering a banana float and telling the waiter to hold the cherry on top, explaining she’s on a diet.
Think of the affordable housing the combination of Bezos, Musk, Pinchai, Nadella, Ellison and many others, could construct with a similar ‘sacrifice”, each year, instead of buying another way over priced coastal house, yacht, or old master painting.
TC’s “sacrifice” alone could construct two hundred $250,000 homes per year. The top 1% could build thousands, each year. Russian oligarchs could build even more. None would miss it.
It wouldn’t impact their life styles on iota.
Not that it matters to anything else being discussed here, I seem to remember reading somewhere that upon his death, most of Cook’s estate will be going to charity with a small amount of the overall estate going to a nephew of his.