Apple Inc.’s board is linking more of Chief Executive Officer Tim Cook’s compensation to the company’s performance, seeking to reassure investors that management will act in shareholders’ best interests.
Cook requested the modification to his bonus as part of a drive to lead by example, Apple’s board said in a filing Friday. The change means more of the CEO’s stock rewards will be subject to a drop in value, directors said.
The changes follow a 41 percent slide in Apple shares from a record in September as the company faces pressure to release a new hit product that can live up to the success of the iPhone and iPad. Cook, who succeeded Apple co-founder Steve Jobs as CEO, received a compensation package in 2011 valued at $378 million at the time, one of the biggest pay packages on record. Most of that was in stock awards vesting over a decade. As a result of the new plan, some of that bonus will now be based on the company’s stock performance, rather than length of time.
“Mr. Cook is leading this initiative by example and has the full support of the board of directors,” the board’s compensation committee said in the filing.