February 8, 2024Anmol Nagpal

Apple defeats lawsuit claiming it overpaid CEO Tim Cook

A federal judge dismissed a lawsuit accusing Apple of overpaying CEO Tim Cook and other top executives by tens of millions of dollars by miscalculating the value of performance-based stock awards.

Source: AP

US District judge in Manhattan said the iPhone maker described its pay methods in detailed compensation tables in its 2023 proxy statement.

Source: ANI

Rochon also found no proof that Apple's BOD acted improperly in awarding pay, and said the plaintiff, did not give the board enough time to consider its objections before suing.

Source: AP

The plaintiff said Apple in 2021 and 2022 awarded a respective $92.7 million and $94 million of performance-based restricted stock units to Cook and four other executives.

Source: Unsplash

Though its compensation committee intended to award just $77.5 million each year.

Source: Unsplash

It attributed the alleged error to the committee's improper calculation of the RSUs' fair values at the time of the grants, and said it misled shareholders who would be casting advisory votes on execu

Source: ANI

Cook's compensation totaled about $99 million in both 2021 and 2022, including more than $82 million of stock awards each year, Apple proxy filings show.

Source: Unsplash

His total pay declined to $63.2 million for 2023. The four other Apple executives were each awarded more than $26 million in each of the three years.

Source: Apple BKC