Apple CEO’s pay fell 15 percent in 2016
07 Jan 2017 - 12:35
SAN FRANCISCO: Compensation for Apple’s chief executive Tim Cook slid 15 percent in 2016 compared to the year before, according to a filing with the Securities and Exchange Commission (SEC) released Friday.
Several top executives at the company also saw smaller paychecks after the iPhone builder experienced its first year-over-year sales decline since 2001 when the first iPod was unveiled.
Cook earned $10.3 million in 2015, four years after he took over the company’s top position following the death of co-founder Steve Jobs.
Last year, he received $8.75 million, including a $3 million base salary. Although Cook’s base pay increased from $2 million, his total pay significantly decreased due to slashes in his bonuses.
Other executives, including Internet services leader Eddy Cue and retail chief Angela Ahrendts, saw similar declines.
The iPhone and other Apple products were still blockbuster sellers in 2016. The SEC report said the company made $215.6 billion in sales, however, in 2015, Apple made $233.7 billion in sales.
Profits decreased from $53.4 billion to $45.7 billion, with sales of the iPhone 6S failing to match those of its predecessor.
“Apple was below its target performance goals for both net sales and operating income, resulting in a payout of each named executive officer’s annual cash incentive at 89.5 percent of target,” Apple said in a statement in the SEC report.
The top six executives at Apple still collectively earned more than $100 million in 2016. In the report, however, the company said executive pay in 2015 would be based even more on company performance.
As much as 50 percent of stock incentives for Apple’s leaders will be linked to how well it does in the coming months.
Apple’s stock closed 1 percent higher Friday at $117.91.