Apple has cut her CEO Tim Cook’s salary by $1.5 million as the company missed its revenue and profit goals for the business year 2016. Now that’s huge chunk of money if you ask me.
According to a regulatory filing on Friday whch was made available WSJ, Cook’s compensation for 2016 was cut from $10.28 million in 2015 to $8.75 million in 2016.
The report released by WSJ revealed that Apple’s annual sales of $215.6 billion was 3.7% below its target of $223.6 billion. “Our 2016 performance with respect to net sales and operating income was 7.7% and 15.7% below our record-breaking 2015 levels; however, 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,” the report said
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However, Cook isn’t the only top Apple executive receiving a pay cut in 2016, several other top leaders of the Tech giant were not spared as some also received less compensation in 2016 as compared to 2015. Cook at 15% received the largest cut in percentage terms because cash incentives make a larger percentage of his compensation. Other executives saw an average of 9.6% year-on-year reduction in annual targeted incentives thanks to declining revenue.
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Looking at the fact that Tim Cook has gained about $100 million in stock bonuses for serving five years as the head of the tech company (Apple Inc).Tim Cook, the salary cut might actually mean nothing to him or probably have little effect on him or his financial status. Asides the $100million, he also liquidated a large chunk of his shares in Apple stock which also increased his purse with the sum of $65 million. I’m sure one would now begin to see that $1.5million is actually “Chicken change” to the Apple CEO, Tim Cook.
In other news, the company (Apple) will report its quarterly numbers on January 31, which would reveal if it managed to benefit from Samsung’s Note 7 explosion saga. Also, Apple have confirmed that the date of its next shareholder’s meeting is February 28, 2016.