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