Apple Cuts CEO Tim Cook's Pay, Citing Performance -- 2nd Update
January 06 2017 - 9:59AM
Dow Jones News
By Austen Hufford
Apple Inc. said Chief Executive Tim Cook and other top leaders
received less compensation in 2016 as the company missed its
revenue and profit goals for the year.
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.
Apple last year faced declining revenue as it grappled with the
first prolonged slump in iPhone sales. The smartphone accounted for
63% of Apple's annual revenue, but growth in the market has slowed
and consumer buying habits are changing. Apple said it sold 45.5
million iPhones in its fiscal fourth quarter, 2.5 million fewer
than a year earlier.
Mr. Cook's pay fell 15% last year versus a 9.6% average decline
for Apple's other named executives, as cash incentives make up a
larger percentage of his compensation. Pay for Chief Financial
Officer Luca Maestri fell 10% to $22.8 million, which includes
about $20 million in stock awards.
In a filing last August, Mr. Cook said he received 1.26 million
Apple shares, valued around $135 million at the time, that
previously were restricted. Mr. Cook earned the bulk of the shares
by remaining CEO for five years. He earned additional shares
because of Apple's stock performance.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
January 06, 2017 09:44 ET (14:44 GMT)
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