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Tim Cook Takes Pay Cut as Apple Misses Profit and Revenue Goals in 2016

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Apple CEO Tim Cook along with other Apple executives took pay cuts in 2016 as a result of the firm missing the mark on its profit and revenue goals for the year, according to a new report from the Wall Street Journal.

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Cook’s salary was reduced by 14.9 percent to $8.75 million USD in the latest fiscal. In 2015, he received $10.28 million USD, with 11.5 percent increase from the previous year.

In a regulatory filing, the tech giant revealed that the base salary for Cook increased to $3 million USD from $2 million USD last year. While, non-equity incentive pay reduced to $5.37 million USD from $8 million USD a year ago. Other compensations were increased to $377,719 USD from $281,327 USD.

Apple reported a yearly revenue of $215.6 billion USD, 3.7 percent below its 2016 target of $223.6 billion USD. The company’s operating income, or its earnings before interest and taxes, was 0.5 percent short of its target. The firm reported its first revenue decline in 15 years last October.

Apple’s other top executives, including CFO Luca Maestri, and SVPs Angela Ahrendts, Eddy Cue, Dan Riccio and Bruce Sewell, all made much more than their boss once again, thanks to generous stock awards. Each of those respective divisional leaders made a bit under $23 million USD last year. Seems like it’s still good to have Apple stock.

Apple, which continues to operate profitably, is expecting iPhone sales to rebound during the holiday quarter due to strong demand for its latest model, the iPhone 7 and 7 Plus.

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  • jay

    Talking to my friend, she works in an Apple Store the iPhone 7 never caught attention. The 7 plus was popular when it was sold out but for a month it just does not sell well. Wonder why?

  • I think it’s probably because people perceive it as being “the same” as the iPhone 6 and 6s, simply because the physical design hasn’t changed. Also might be partly because of rumours that next year’s iPhone is going to be a big upgrade since it’s the 10th anniversary. Typically I would think the majority of consumers aren’t following those rumours, but I’ve had a surprising amount of friends mention to me that they heard the next iPhone is going to be a notable upgrade because of that. It’s all kind of silly really.

  • xxxJDxxx

    No headphone jack?

  • Aleks Oniszczak

    I think the problem is worse than people just thinking the new iPhone is “the same”. Apple seems to have settled on a design for the last 3 years that doesn’t even look as good as the iPhone 5, 4S or 4 for that matter. And without the headphone jack, it’s worse than just staying “the same”.

    I’d pick the iPhone 6S over the 7, the previous MacBook Pros over the new ones and I bought a 2012 Mac mini because the newer ones are also worse. I sense a trend.

  • jay

    Not only the design even the screen resolution is the same.

  • Ah, yes the headphone jack removal probably contributes to it as well. It’s one aspect of the phone that people could view being worse than the previous model, even though almost everything else has improved.

    What on earth would make you pick the 6S over the 7? Do you mean if you were given one or are you factoring the price into it as well? If you’re choosing it simply because of the headphone jack, it seems crazy to me that people would choose a slower, non-waterproof phone with slightly worse sound quality and screen just to be able to plug in headphones without an adapter.

  • Do you mean the screen is the same physical size, and it should be bigger? Or do you actually think 326ppi is too low a resolution for a cellphone screen?

  • Aleks Oniszczak

    It is too low for VR. Looks very pixelated and dated.

  • Aleks Oniszczak

    Well, lets get the facts straight first – the new iPhones are NOT waterproof – they are “water and dust resistant” Big whoop.Not worth losing a headphone jack for.

    In my case, I use Apple’s first “watch” – a 6th gen iPod nano on a ceramic band with headphones all the time. And so I’m not going to take off those headphones and switch to another pair – or search for a dongle just to use an iPhone 7. I just plug the ones I’m already wearing into my iPhone 6.

    Which brings me to yet another example of a previous Apple product that’s actually more useful than their current offering. The battery life is days long. It does things that my phone doesn’t already do – like FM radio. And instead of sapping my iPhone’s battery with Bluetooth, it ADDS to my iPhone’s battery life by letting me listen to podcasts on the watch instead of my phone. It even has double the storage of the current Apple watch (16GB vs 8GB) and I could go on.

    So yeah, the iPhone 7 has no appeal to me – and this is coming from someone that has bought the 3G, 3GS, 4, 5 and 6. If they had just made it thicker to increase the battery life and gotten rid of that ridiculous camera hump. And made it waterproof. And added a microSD slot. And USB C. Aww heck, who am I kidding, I’m just going to go Android at this point.

  • tom

    I don’t know why you waste your time coming to this site at all – you’re such a troll

  • Aleks Oniszczak

    Because I like the site – it’s great. And unlike you, I make comments pertaining to the article in question. Remember the topic? Tim Cook’s salary was reduced due to Apple’s new products not doing as well.

    Why do you waste your time reading my comments and replying to them without even contributing to the topic at hand. And then calling me a name? Isn’t that what a troll would do?

  • That’s the first time I’ve heard a good argument for why someone would need a higher than “retina” resolution phone.

    That being said, I personally prefer the faster speed (in graphics processing) to any increased resolution, and I appreciate that they focused on improving the brightness and colour gamut instead.

  • They’re legally only water and dust resistant, but functionally I’ve seen tests done where they survived for over 20 minutes recording video underwater at depths up to 15 feet. I think Apple just doesn’t advertise them as waterproof to avoid potential problems if people were to try swimming with them. For a quick dunk, I think they’re fine.

    Regarding the missing headphone jack, I think they killed it more to save space than they did for water resistance. I agree, I think their quest to make their phones thinner is somewhat ridiculous. I too would easily take a thicker phone with longer battery life and the inclusion of the headphone jack, especially if it meant there was no stupid camera bump (I’m with you on that one too).

    I also agree that USB-C would have made far more sense than a Lightning connector. I have a feeling the reason they didn’t do that was because of two reasons: They didn’t want to kill the Lightning port so quickly and wanted to make a bit more money off it first, and they also didn’t want to jump the gun on revealing their transition to USB-C. Both bad reasons, but I can see how they might make sense on some level.

    MicroSD would be problematic because of the way Apple’s filesystem works. They’ve designed iOS to be rather foolproof for storage, meaning you don’t have to remember where you’ve saved something or what you named a folder, as they basically made the filesystem invisible to the end user. Introducing a secondary storage option would require a modification to the OS that makes that filesystem visible, and many people wouldn’t quite understand it. Is that the best way to design a phone OS? Not for power users or tech heads, but it is for the average consumer (I’m thinking of my parents and many of my friends). I don’t think the iPhone was ever intended to be a gadget for tech nerds, it was designed to be a phone for the average user.

    Great reasons though, I totally understand your dissatisfaction with the iPhone 7. It’s nice to see someone actually explain why they don’t like it instead of people thinking they don’t like it because they don’t think it looks any different or they’ve heard it got bad reviews or they don’t like the idea of not having a dedicated headphone jack without actually thinking about whether it would be a problem for them.

  • jay

    when i see a samsung screen that looks just more crisp

  • Aleks Oniszczak

    Great reply 🙂 You know, I don’t mind not having an SD card in my iPhone 6 in theory because I bought the 128GB model since I learned that 64GB was tight in my last phone. But what I do object to is what Apple charges for 128GB on their phones. I can walk into Canada Computers and get a 128GB micro SD for an Android phone for about $60. Apple charges $129! Not only that, but it’s $129 for a TOTAL of 128GB, with an Android phone, they let you keep your 32G and ADD 128GB to it for a total of 160GB.

    And guess what happens if I want to upgrade and stay with 128GB. On Android, I take the card out of my old phone and out it onto my new one. One time payment of $60. With Apple, I’d have to pay them $129 AGAIN just to stay at the same level.

    There was a time when iPhones were so advanced over the competition that I accepted their gouging because it was so worth it. Now that the competition has basically caught up, what’s their excuse?

  • TwitchyPuppy

    Does not sell well?! The 7 Plus is pretty much b/o everywhere.

  • TwitchyPuppy

    The fact that they burn does help adding to their ‘crisp’.

  • TwitchyPuppy

    $60 for a microSD card or $129 more for an ENTIRE smartphone. I seriously hope you’re kidding, with your post..

  • Aleks Oniszczak

    No, Apple charges $129 more for the 128GB model vs the 32GB model. So you are paying Apple $129 for 96GB (128GB-32GB). That’s IN ADDITION TO paying for the price of a 32GB phone.

  • TwitchyPuppy

    So you pay for a phone and a premium for additional storage.

    Welcome to the world!

  • Aleks Oniszczak

    I’m pointing out problems that may have led Tim Cook to taking a pay cut. What exactly are you adding to this conversation?

  • jay

    Remember beats pill same thing but people forget fast when it comes to apple

  • TwitchyPuppy

    Haha I didn’t forget, it’s just that I had to make that pun =P

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