Apple CEO Tim Cook Receives a 15% Pay Cut for 2016

Jan 07, 2017, 00:12
Apple CEO Tim Cook Receives a 15% Pay Cut for 2016

Other named executives netted almost $23 million apiece.

Apple is still one of the most profitable companies in the world but after a tough year that saw a decline in sales and revenue, the Cupertino company has opted to cut the pay of several executives including CEO Tim Cook.

Apple reported a yearly revenue of $215.6 billion, 3.7 percent below its 2016 target of $223.6 billion.

As a result, company executives got 89.5% of their targeted annual cash incentive.

Since 2010, guidance and expectations has increased each year for the tech giant. Each year, the board approves values to different thresholds and offers compensation awards based on where Apple's revenue and operating income fall on that continuum. The company's operating income, which is earnings before interest and taxes, was 0.5 percent short of its target.

Annual pay for Apple CEO Tim Cook was reduced by 14.9 percent to 8.75 million in the latest fiscal. In August, he was awarded almost 1.3 million Apple shares for the company's stock performance and for serving five years as its chief executive. However, this does not include the $135 million worth stock actions that Cook possesses since 2011.

The windfall is a huge jump from 2015 when the CEO received $10 million in salary and bonus, and $64.2 million in stock that vested.

According to the filing, Cook's pay package is made up of a base salary of $3 million, up from $2 million past year. Apple executives received just 89.5 percent of their expected annual cash incentives previous year. That group is made up of Cook, CFO Luca Maestri, retail chief Angela Ahrendts, iTunes and services head Eddy Cue, top lawyer Bruce Sewell and hardware engineering lead Dan Riccio. This year, Cook earned $5.3 million and other executives earned about $1.8 million, a little less than twice each executive's base salary.

This as Apple has seen much of the luster wear off of its flagship iPhone lineup.

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