Apple Pays Tim Cook Less Following Missed Revenue and Profit Goals

A recent report from The Wall Street Journal outlines a regulatory filing, detailing the compensation of Apple’s CEO, as well as other executives at the Cupertino-based company. The filings reveal that Cook earned $8.75M in 2016, which is actually a $1.5M cut when compared to the compensation earned by the CEO in 2015. According to the report, Cook’s compensation was cut by 15% due to the company missing its internal revenue and profit goals.

The filings reveal that Apple’s annual sales of $215.6 billion were 3.7% below its target goal of 2016 of $223.6 billion. The goals also included a $60.3 billion target in operating income, but Apple only worked out a $60 billion total.

“According to a regulatory filing on Friday, Apple said its annual sales of $215.6 billion were 3.7% below its target of $223.6 billion, and its operating income of $60 billion was 0.5% short of the $60.3 billion target.
As a result, company executives didn’t get their full potential cash incentive. In each of the four preceding years, the executives got the maximum total payout amount. In all, Mr. Cook received $8.75 million in total 2016 compensation, down from $10.3 million in 2015. Other executives also received lower pay.”

 So what do you think?