Was Apple’s CEO Tim Cook overpaid? Judge says no،
Have you ever thought about how much money is too much money? Some people certainly have, as shown by a recent lawsuit challenging the hefty pay packages of Apple's top executives, who can now breathe a sigh of relief.
Reuters reports that a federal judge has dismissed a lawsuit alleging that Apple CEO Tim Cook and other top executives overpaid tens of millions of dollars due to miscalculations in the value of award awards. actions based on performance.
According to the plaintiff, Apple awarded $92.7 million and $94 million in performance-based restricted stock units to Cook and four other executives in 2021 and 2022, respectively. However, the compensation committee reportedly intended to award only $77.5 million each year.
The plaintiff claimed that the committee erred in not correctly calculating the fair value of the RSUs at the time of their grant. This allegedly led to shareholders being misled when voting on executive pay, also known as say-on-pay.
However, Judge Jennifer Rochon, a U.S. district judge in Manhattan, said the iPhone maker described its payment methods in detailed compensation tables in its 2023 proxy statement, precisely as required by law. securities and rules set by the United States Securities and Exchange Commission. .
Rochon also concluded that there was no evidence to suggest that Apple's board acted inappropriately in awarding salaries. Additionally, the judge noted that the plaintiff, a pension fund affiliated with the International Brotherhood of Teamsters, did not give the board sufficient time to respond to its objections before filing suit.
Like many big companies, Apple's top executives are paid in different ways: there's a base salary, additional money based on performance, stock and other benefits that they negotiate individually.
According to Apple filings, Cook earned approximately $99 million in 2021 and 2022, primarily from stock awards. But in 2023, his salary dropped to $63.2 million. Apple's four other executives received more than $26 million each year for the past three years.
