Apple CEO Tim Cook asked for — and got — a major pay cut this year. Is there ever a time when some of us should accept one too? The answer is ‘yes.’

The new year is barely underway, but for Apple CEO Tim Cook, 2023 is already memorable — though not in a way you may expect. In an SEC filing, Apple announced that Cook will receive a big pay cut in 2023, and the filing noted that he requested the cut. “Mr. Cook’s 2023 target total compensation is $49 million, a reduction of over 40% from his 2022 target total compensation,” the filing noted.

While asking for a pay cut certainly isn’t the norm, a November 2022 survey from staffing company Insight Global reveals that 61% of workers said they would be willing to take a pay cut to avoid being laid off if there is a recession. The survey also found that employees in management roles are even more inclined to take a cut in pay compared to non-management employees, with 75% of managers saying they would be willing to take a pay cut.

So when might it be advantageous to ask for a pay cut? “It’s rare, but there are definitely moments where trading some of your base salary in exchange for other perks makes sense,” says John Roccia, director of career services at Ama La Vida Coaching. (Just note that if you ever do decide to take a pay cut, make sure you have the savings you need; see the highest savings rates you can get now here). 

We asked career coaches and job search experts for their take on this type of salary negotiation.

1. When taking an initial pay cut means you’ll likely make way more later 

If there’s a chance an initial pay cut could lead to more compensation down the road, it might be a move to consider. “In my own time as a sales manager, I once had a stellar salesperson on my team ask for a reduced base salary in exchange for a higher commission percentage. She was confident in her skills and made more money as a result,” says Roccia.

That said, job search strategist Sarah Johnston of The Briefcase Coach says that in most cases it is better to take a higher base compensation over a higher bonus. “Bonuses are one-time payments. When you negotiate a higher base, future salary increases or cost of living adjustments will be given off the base pay, not base and bonus. You’re essentially negotiating for your future self when you ask for more in the base,” says Johnston. What’s more, “Bonuses can also be taxed at a higher rate than your salary. The IRS considers bonus payouts as supplemental wages which can be subject to different federal withholding rules,” says Johnston.

2. When taking less pay gives you more of the benefits you want

It can make sense to take a little less pay to get better benefits like more vacation, less time in the office or something else. But pros say you should ask for everything you want: the pay and the benefits, and only after pushing for that, might you make concessions just to make the deal work.

3. When you want to switch roles to further your career, but don’t have experience yet

Johnston says she’s worked with job seekers who intentionally took an internal demotion so that they could make a career pivot that they felt could set them up for more long-term career satisfaction or upward mobility. 

“It’s natural to feel like switching jobs should always come with an increase in salary, but that can cause you to miss many wonderful opportunities that may be better in every other way than your current role, even if they pay a little less,” says Roccia.

4. When you’re taking a pay cut for the greater good (and you can afford it)

If you’re in a senior role, like Cook, taking a pay cut when you’re already making leaps and bounds more than your employees can go a long way for morale. “Engaged teams are 21% more productive and if Cook is going to ask his team to perform at a high level with potentially fewer resources, engagement is imperative,” says Johnston. Sometimes, when you’re at the helm of a company, putting your workers’ needs before your own can pay so-to-speak dividends in the long run. 

All that said, it’s the exception not the rule to take a pay cut. “Self-advocacy almost never has to come with a cost. If you intend to stay with your organization, you can and should negotiate for the environment you need without feeling like you need to pay for it out of your own pocket,” says Roccia.