Business in Tech

Tim Cook And Other Apple Execs Had To Take A Pay Cut In Line With Declining iPhone Sales In 2016

The sale of Apple’s main product the iPhone has been on the decline (the first time in 13 years and a first for Tim Cook since he took over in 2009) and while that is true, Apple services like iTunes, App Store, iCloud and Music have tried to make up for lost grounds over the years, it wasn’t enough to significantly change the company’s standing.

When such things happen, someone has to take the blame for this and this time it’s the CEO and other executives of the company. According to a new filing at the SEC, Tim Cook lost about $1.5m in 2016 compared to the $10m he earned in 2015. He made $8.74m in 2016 just as Apple’s share of the smartphone market continues to shrink well into the last quarter of last year in spite of the iPhone 7 launch in the third quarter of last year and the apparent recall of the Samsung Galaxy Note 7.

In the filing, Apple says  “Overall, our 2016 performance with respect to net sales and operating income was 7.7% and 15.7% below our record-breaking 2015 levels…. the 2016 payouts to our named executive officers were significantly less than the annual cash incentive payouts for 2015, reflecting strong pay-for-performance alignment.”

While you may think Tim Cook was the highest paid person in Apple but CFO Luca Maestri, head of retail Angela Ahrendts, hardware Chief Dan Riccio, internet software and services head Eddy Cue and general counsel all earned $22m each.

Apple CEO Tim Cook though made $135m earlier in the year after selling 1 million restricted stock units to common shares.

Tim Cook has previously said he would give away all of his fortune worth about $750m away before he dies according to a report in 2015. The plan involves him paying off his nephew’s education costs though.