Apple cuts Cook’s compensate for blank sales goals

January 07, 2017
Business

Apple’s sales unemployment is holding a punch out of Tim Cook’s paycheck.

The iPhone builder cut Cook’s compensate by 15% final year to $8.7 million, according to a filing expelled on Friday.

Apple (AAPL, Tech30) privately cited a company’s disaster to accommodate a opening goals for both sales and profits. Shrinking iPhone sales final year caused Apple to humour a first annual income decrease in 15 years.

Now Apple’s house is holding a CEO and other leaders accountable for a stumbles.

While Cook’s income rose to $3 million from $2 million final year, his money reward took a hit. Apple awarded Cook and other executives 89.5% of their target, instead of a limit volume like in new years.

That meant Cook’s money reward fell to $5.4 million in 2016, down from $8 million a year before. All told, Cook’s sum remuneration was $8.7 million final year, compared with $10.3 million in 2015.

But don’t feel too bad for Cook, whose genuine happening is related to his immeasurable land of Apple stock.

Last year, Cook finished 5 years as CEO and scarcely 1.3 million of his formerly limited Apple shares vested. The shares were value about $136 million.

As in prior years, Cook’s 2016 compensate was next that of his tip lieutenants. All 5 comparison executives next him, whose income is done public, done only underneath $23 million in 2016. That includes Luca Maestri, Apple’s arch financial officer, as good as sell trainer Angela Ahrendts.

Apple’s singular sales unemployment is directly related to a detriment of movement for a iPhone, that generates a infancy of a tech icon’s sales.

Sales of iPhones have declined in any of a past 3 quarters, slipping to 45.5 million in a Sep quarter. The problem is that Apple has faced high foe from Samsung and other smartphone creates and a newest iPhones haven’t featured adequate upgrades to captivate customers.

Apple’s batch finished 2016 with a healthy benefit of 10%. That compares with a 13% benefit for a Dow and 9.5% for a SP 500. The renouned stock perceived a boost in early Sep interjection to a Galaxy Note 7 disaster, that forced Samsung to discontinue a phone.

Apple will exhibit only how most it benefited from Samsung’s pain when a association reports quarterly numbers on Jan 31.

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