Apple has cut its CEO, Tim Cook’s salary by 15 percent following a decline in its annual sales. The iPhone maker penalized Tim Cook for the company missing its target which led to its first revenue slump in 15 years.
On Friday, Apple revealed that it missed its annual sales and profit goals for the first time ever since 2009. The company has hold its CEO and other leaders accountable for this decline and awarded them 89.5 percent of their target instead of the usual maximum amount. Tim Cook’s salary rose to $3 million last year from the previous year’s $2 million, however, his incentives plan compensation took a hit from $8 million to $5.37 million. His total compensation was 8.7 million in 2016, down from 10.3 million the previous year.
The tech giant’s revenue dropped by 8 percent, coming down to $216 billion, as its operating profit declined by 16 percent to 60 billion. This has marked the first time that the company annual revenue has decreased since 2001 when Steve Jobs, its late co-founder, introduced the iPod. Also, this is the first time that Apple has sold fewer iPhones ever since the device first came out in 2007.
photo credit: Valery Marchive under creative commons license
