The Apple board of directors has modified its CEO compensation policy, a move which now links Tim Cook's bonus to stock performance.
Following the approval of the filing last Friday, the move was made to reassure investors who have seen company shares plummet by 41% since a record high during September last year.
Upon taking over from the late Steve Jobs as CEO in 2011, Cook was given one million Apple shares vested over a decade, with the bonus now changed to base on stock performance.
After stating his own disappointment at the company's flagging shares, it seems Cook is now putting his money where his mouth is, challenging himself to earn his full bonus before the 2016 cut off.
“Mr. Cook is leading this initiative by example and has the full support of the Board of Directors," the filing said.
"He asked the Committee to apply a performance metric to his outstanding 2011 CEO equity award as well as any potential future awards.
"After careful deliberation, the Committee has approved a modification to Mr. Cook’s 2011 award.
“While the Committee generally believes that a performance-based award should have both a downside and an upside component, at Mr. Cook’s request, the modification does not contain an upside opportunity for over -achievement of these criteria.”
Earlier this month Cook admitted people thought he was "crazy" to join the company back in the late 1990s, yet after a rise to chief executive officer, his move has been justified.
Constantly facing criticism over Apple's declining stock price, which currently sits at US$413.50, it must be noted that Cook received a 99.1% approval rate from investors in February this year, as he bids to take Apple back to the forefront of the tech industry.
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