Apple cut Tim Cook's salary for his performance in 2016 -


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Saturday, 7 January 2017

Apple cut Tim Cook's salary for his performance in 2016

Apple today revealed that its executive team, including CEO Tim Cook received a pay cut for their performance in 2016, reflecting the first drop in income in 15 years.

Adjusted payment comes as a result of Apple's incentive opportunities based on effective performance for its top executives. With net sales of $ 215.6 billion and operating income of $ 60 billion, Apple was slightly below its targets set by the company's compensation committee.

"This performance resulted in a combined payment of 89.5% of the target for each appointed executive," as revealed by Apple.

For Cook and his team, things could have been worse as Apple's compensation committee has the ability to adjust payments (cut) based on performance and individual contributions. However, the committee determined that no more cuts would be made.

The company noted that 2016 payments to its executive team were "significantly lower" than they received in 2015, as a result of the "strong alignment of pay for performance" in their contracts.

In total, net sales fell 7.7% in 2016, and operating revenues fell 15.7%.
Cook's base salary was raised to $ 3 million in early 2016 from $ 2 million in the previous year. But its total compensation amounted to $ 8.7 million, an overall reduction of $ 1.5 million compared with the previous year.

In fact, Cook earned less in 2016 than he did two years ago (2014).

The base salary for other Apple executives remained stable at $ 1 million by 2016, although they also reduced total compensation to them. Other executives named in Apple are Luca Maestri, Angela Ahrendts, Eddy Cue, Dan Riccio and Bruce Sewell.

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