Apple won't have to face a lawsuit from an investor accusing the company of overpaying CEO Tim Cook and other top executives by tens of millions of dollars after a federal judge dismissed the suit on Wednesday (via Reuters).
The alleged error was attributed by the pension fund's lawyers to the committee's incorrect calculation of the “fair value” of the restricted stock at the time of the grants and stated, that it misled shareholders who would cast advisory votes on executive compensation, known as “say-on-pay.”
U.S. However, District Judge Jennifer Rochon disagreed, saying Apple described its payment practices in detailed compensation schedules in its 2023 proxy statement “accurately” as required by securities laws and SEC rules.
The Manhattan judge also found no evidence that Apple's board acted improperly in setting the pay and said the plaintiff did not give the board enough time to consider its objections before filing the lawsuit.
Apple's proxy statement shows Cook's total compensation was approximately $99 million. in both 2021 and 2022, including stock awards of more than $82 million each year. Cook's total salary in 2023 dropped to $63.2 million.
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