It looks like being the CEO of Apple isn’t the reason for not completing the required target. Apple cut Tim Cook’s pay by 15% last year to $8.7 million
Apple Cuts Tim Cook’s Payment By 15% For Not Meeting ‘Targets’
Well, iPhone sales were hit by a slump which led to the company missing its revenue and profit goals for 2016. For this, tech giant Apple has cut its CEO Tim Cook’s pay for the year.
It looks like being the CEO of Apple isn’t the reason for not completing the required target. Apple cut Tim Cook’s pay by 15% last year to $8.7 million, as listed on the filing released on Friday.
Tim Cook has a vast holding of Apple stock, so the 15% pay cut won’t pinch him much because his pay might double in the next quarter after all. Apple’s revenue dropped 8% to $216 billion, while its operating profit has declined 16% to $60 billion.
The reason of such declination was simple, its because Apple sold fewer iPhones for the first time since the device came out in 2007. It was also the first time that Apple’s annual revenue decreased since 2001, which was just before the Apple’s late CEO Steve Jobs unveiled the iPod.
However, users are still holding their existing iPhones for longer periods without upgrading to a newer model every year or two. Investors are bit concerned that Apple has become too independent on the iPhone, and they are not trying to introduce another breakthrough product since Steve Jobs death in 2011.
Well, there is good news too! The stock received a boost in iPhone sales because of Samsung Galaxy Note 7 issue. The company is yet to reveal how much Apple is benefitted for Note 7 disaster by disclosing its quarterly numbers on January 31.
So, what do you think about this? Share your views in the comment box below.
