As a result of a failure in meeting proposed sales target of 2016, Apple’s CEO Tim Cook’s annual payout reduced by 15% to $8.7 million which was $10.3 million last year. The regulatory committee has penalised other top executives too along with Tim which is due to the revenue drop that the company experienced in 2016.
As per the reports of SEC filings, Apple’s sale target for last year was targeted at $223.6bn but it could only able to mint $215.6bn, missing the bull’s eye by 3.7% margin. As a result of which Tim got his perks and pay cut by 15%. This is even low than his 2014’s figure of $9.2m.
Last year in August, Tim has revealed his total till now income to be $135m within his working in Apple as chief executive for five years. He achieved this figure by receiving 1.26 million Apple’s share last year. The current figure of $8.7m excludes his salary and the addition of which will make it a figure of $11m. The heat is high because this leading mobile brand company has faced the annual revenue decline for the first time in 15 years.
A close analysis can reveal that although Cook’s incentive packages have experienced downfall but his base salary shows an increment of 50%. In 2015, Cook’s base salary was $2m that got a hike of 50% and resulted in $3 million last year. But on the area of compensation package not only Cook but also other top executives saw a decline of $2.21m.
Expert analysts are saying that the disappointment of iPhone 7 users might have resulted in the decline of sales figure of Apple. However, with its new set of iPhone 8, the company seems to be more optimistic which will be unveiled this year with firm’s 10 year anniversary. With a marketing of ‘the most radical design ever’ Apple is sure to charm its user again through iPhone 8 and is all set to revive its yearly profit.