Tim Cook did not meet his performance goals, and his shortcoming cost him millions of dollars.
According to a filing released this week, Apple cut its CEO’s pay by 15% last year. The filing cites Apple’s failure to meet sales and profit performance goals in 2016.
Don’t feel too bad for Cook, though. His base salary was up from 2015 and he still earned nearly $9 million in total.
This is down from the more than $10 million he made in 2015, but well below the $11 million he could have earned last year. Besides, his salary and cash earnings are small potatoes when held against his tens of millions worth of Apple stock.
Other executives were punished as well. Many earned less than 90% of their maximum bonus, something which has not occurred in years. Indeed, it’s the first time Apple missed its own goals since Cook took over as CEO.
Apple’s financial shortcomings are a mixed bag. On one hand, the iPhone—the company’s fiscal bread and butter—has lost momentum in recent years. And the iPad has stagnated. And the Apple Watch, like all other smartwatches, hasn’t taken off. But on the other hand, the company is still generating massive revenue and remain extremely profitable with a mountain of cash on the side. And Apple’s stock is still faring well.Apple is scheduled to report its quarterly earnings at the end of this month.