Apple Cuts CEO Pay, Citing Performance

FILE – Apple CEO Tim Cook contends that complying with a government demand to help unlock an iPhone would endanger civil liberties. He’s shown at a 2015 news conference in New York.

Apple’s CEO Tim Cook took a pay cut in 2016 after the company missed key economic goals.

Due to lower profits and revenues, company executives received 89.5 percent of their cash incentive, compared to 2015 when they received 100 percent.

For Cook, that meant he received $8.75 million in 2016 compared to $10.28 million in 2015.

According to the filing, Cook’s pay package is made up of a base salary of $3 million, up from $2 million last year. He also got $5.37 million in non-equity incentive pay, down from $8 million. Cook also got $377,719 in other compensation.

Apple’s annual sales in 2016 were $216.6 billion, some 3.7 percent lower than the target of $223.6 billion, according to a company regulatory filing. Operating income was closer to target at $60 billion, just off .5 percent from the $60.3 billion target.

Much of the decline in sales and profits stem from a slowing market for the company’s iPhone.

The company’s stock was flat over the 2016 fiscal year that ended in September.