In a significant legal development, a lawsuit alleging that Apple Inc. overcompensated CEO Tim Cook and other senior executives has been dismissed by a U.S. federal judge. The litigation accused Apple of misjudging the value of performance-based stock awards, inflating executive pay by millions.
Presiding Judge Jennifer Rochon in Manhattan found that Apple’s proxy statement for 2023 clearly outlined its compensation procedures in line with the required securities laws and U.S. Securities and Exchange Commission regulations. Rochon also highlighted the lack of evidence suggesting any impropriety by Apple’s board in the allocation of executive compensation. Additionally, the court noted that the plaintiff, associated with the International Brotherhood of Teamsters, had prematurely filed the lawsuit without allowing Apple’s board sufficient time to address the raised concerns.
The contention arose over the stock awards given to Cook and four other executives in 2021 and 2022, which the plaintiff argued exceeded the intended amounts. Despite the allegations, Cook’s compensation saw a reduction in 2023.
The dismissal serves as a setback for the International Brotherhood of Teamsters. Furthermore, the debate around executive pay at Apple, especially concerning Tim Cook, continues, with opinions divided on whether such high compensation levels are justified by Cook’s role in ensuring company stability and market confidence.
