Apple Makes Execs Pay For iPhone 6 Failures
Recent reports have revealed that Apple has took the drastic measure of cutting Tim Cook’s 2016 salary by about $1.5M following the company’s failure in reaching its revenue and profit goals, which includes the iPhone 6.
The Wall Street Journal revealed in a regulatory filling that Cook’s pay was reduced from $10.28M in 2015 to $8.75M in 2016.
“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 got 89.5% of their targeted annual cash incentive,” clarified the report.
With 15 percent of reduction, Cook recorded the highest among all other executives who received an average of 9.6 percent year-on-year reduction in salary.
Cook had decided to receive a large part of his salary in stock awards closely related to Apple’s financial performance. But, his biggest stock award was for staying CEO for five years, acquiring him $100M.
He then “liquidated $65M worth of shares, leaving him with a holding at the time of some $110M,” revealed 9to5Mac.
Sometime back in 2015, Cook had declared that he would give away nearly all of his wealth throughout his life.