x PhoneArena is hiring! Reviewer in the USA
  • Hidden picShow menu
  • Home
  • News
  • Apple slashes Tim Cook pay for the first time this year as company misses sales targets

Apple slashes Tim Cook pay for the first time this year as company misses sales targets

Posted: , by Victor H.

Tags :

Apple slashes Tim Cook pay for the first time this year as company misses sales targets

For the first time since he took the helm at Apple, chief executive officer Tim Cook will take a pay cut after the company missed its annual sales target for 2016.

Apple declared annual sales of $215.6 billion for the fiscal 2016 (Apple's fiscal years end on the last Saturday of September), 3.7% below the company's target of $223.6 billion, according to a regulatory filing. The operating profit of the iPhone maker stood at $60 billion, also below the $60.3 billion target, slipping 0.5%.

This is the reason why top Apple executives did not get the full amount of potential cash pay, as they did in previous years. CEO Tim Cook in particular received $8.75 million as a total compensation for the year, while in 2015 the chief executive netted $10.3 million.

Another top Apple executive, chief financial officer Luca Maestri, saw his compensation drop 10% to $22.8 million this year.

Apple has gradually transitioned from a Mac company to an iPhone company, and the phone now makes up some 63% of its revenues. This year, however, for the first time, Apple witnessed prolonged decline in iPhone sales. Analysts pointed out that this was due to market saturation in developed markets like the United States, while in China sales have dropped due to strong competition and the Indian market is yet to provide a much needed boost to iPhone sales.

92 Comments
  • Options
    Close






posted on 06 Jan 2017, 09:21 9

1. bossman (Posts: 211; Member since: 27 Jan 2016)


Good, maybe this will prompt Apple to make a phone that is different from its previous generation.

posted on 06 Jan 2017, 16:20 5

60. blingblingthing (Posts: 559; Member since: 23 Oct 2012)


Maybe they could install Android on their device.

posted on 07 Jan 2017, 07:24

87. drunkenjay (Posts: 982; Member since: 11 Feb 2013)


nah. Ios is good as it is. they just need to make it more open.

posted on 08 Jan 2017, 17:42

91. cheetah2k (Posts: 1671; Member since: 16 Jan 2011)


It already looks like Android after they copied all the features

posted on 06 Jan 2017, 09:21 5

2. Joms_US (Posts: 170; Member since: 02 Oct 2016)


Stepping down might be a better option.

posted on 06 Jan 2017, 11:17 9

30. lyndon420 (Posts: 4771; Member since: 11 Jul 2012)


Demoting himself to CFO would be a good way for him to double what he makes. Maybe they need to put a woman in charge - hey...Mrs Clinton is looking for work lol.

posted on 06 Jan 2017, 11:48 2

34. trojan_horse (Posts: 3215; Member since: 06 May 2016)


That's just in terms of salary... But in total, Tim Cook receives more compensation than the CFO via stock options.

As tedkord already pointed out in post #11, Tim Cook recently sold some of his stocks worth hundreds of millions.

posted on 06 Jan 2017, 16:34

66. blingblingthing (Posts: 559; Member since: 23 Oct 2012)


I disagree.

If this was still Steve Jobs, people might have being using a 3.5" Screen Iphone 7 with no waterproofing, no plus, no HD screen .............. pretty much nothing they learnt from team Android.

Ios would have probably not added any Android features and probably still be able to run on an old 3gs.

posted on 06 Jan 2017, 17:35 2

68. sgodsell (Posts: 4298; Member since: 16 Mar 2013)


Anyone following stocks, that is a good indicator to sell, especially when the CEO is selling off some of his stocks. Sell, sell, sell. Over priced stock, with little to no innovations coming down the pipes. Apple has been following for a number of years now.

posted on 06 Jan 2017, 17:52 1

69. kiko007 (Posts: 4390; Member since: 17 Feb 2016)


You've never bought stock, have you? Here's a lesson champ, those with millions worth in stocks usually sell a massive quantity at some point to lower stock values. Only to retrieve said stocks (usually for the low) and more. This is common practice for most CEOs to make as much money as possible AND to reinvigorate stock values. Please keep your opinion to yourself when you know nothing..... TY.

posted on 06 Jan 2017, 19:20

70. domfonusr (Posts: 442; Member since: 17 Jan 2014)


"Ios would have probably not added any Android features and probably still be able to run on an old 3gs."

I personally know at least one iPhone 3Gs owner who would have been super happy if that were indeed the case. At my university, there are a lot of students who are using older iPhones, mostly iPhone 4s, 5, 5s, and 6's. But I have one friend there who still uses a 3Gs, and he has no intentions of giving it up for a newer model anytime soon. If I start counting people at church, I'll probably end up with a couple more 3Gs users to add to the tally.

posted on 06 Jan 2017, 09:23 19

3. LebronJamesFanboy (Posts: 478; Member since: 23 Mar 2013)


Much needed.

As an Apple fan, Tim Cook has run this Company incredibly poorly considering being handed the world's number 1 tech company on a silver platter.

posted on 06 Jan 2017, 09:32 12

6. maple_mak (Posts: 736; Member since: 18 Dec 2013)


He only concern profit more than customers long-term services. Only know that makes software worst for old devices to force customers buy newer devices, saving cost on iPhone by killing headphone jack...

posted on 06 Jan 2017, 09:53

14. Acdc1a (Posts: 327; Member since: 21 Jan 2016)


We've seen this movie before...unfortunately this time there will be no sequel as the star is no longer with us.

posted on 06 Jan 2017, 11:14 5

29. lyndon420 (Posts: 4771; Member since: 11 Jul 2012)


They're not a tech company - they make phones and that's pretty much it. Sure they might sell a tablet or 2, a few watches, maybe even a few pairs of inferior headphones...hardly justifies the tech company moniker.

posted on 06 Jan 2017, 11:41 5

32. ctdog4748 (Posts: 796; Member since: 05 Mar 2016)


Sorry to burst your bubble but, yeah, Apple does employ quite a few engineers, and scientists. Some that actually have Ph.D's from top tier universities. But hey, why let reality get in the way of your rant ;)

posted on 06 Jan 2017, 12:04

39. AlikMalix (Posts: 6902; Member since: 16 Jul 2014)


I'm with you on that!!!

posted on 06 Jan 2017, 12:06 1

41. AlikMalix (Posts: 6902; Member since: 16 Jul 2014)


If Apple is not a tech company then what the hell is?

posted on 06 Jan 2017, 12:40 7

44. trojan_horse (Posts: 3215; Member since: 06 May 2016)


"If Apple is not a tech company then what the hell is?"

Samsung is!

In fact, Samsung is more of a tech company than Apple is.

Besides, lyndon420's point is that Apple doesn't really qualify to be called a tech company, due to it not having a manufacturing or assembly factory, but outsources the production of it's products from other manufacturers...
Which means Apple doesn't fully qualify to be called a tech company.

I think that's what lyndon420 meant to say.

posted on 06 Jan 2017, 13:19 2

46. sissy246 (Posts: 3181; Member since: 04 Mar 2015)


Stocks down, cutting production, earnings down and now cutting pay.
Not good
And yes I know stocks has come up some, but not back to what it was

posted on 06 Jan 2017, 13:35 3

47. kiko007 (Posts: 4390; Member since: 17 Feb 2016)


That's as narrow minded as calling MSFT a "software" company, or Amazon a "retail" company. Sure, their bread and butter lies in those selective categories, but that in no way means they don't commit to a larger subsection in their respective industries. By your and Lyndon's description of technology, no one is a technological company. Technology extends FAR past simply adding specs to a phone....technological advancement revolves around evolution at an efficient pace. And no, being first at something does not make you superior. The first maps created were exceptionally flawed, to the point that making out locations was near impossible. Only after trial and error could they truly be of use......as I'd most advancement.

Where Apple and Samsung differ is in progress to assessment ratio. How far have we come, and how far do we still need to go? Samsung pushes products out with unique innovative additions which is admirable to us nerds, but a pain in the ass when they backfire. Apple is the exact opposite. They sit ideally as the new craze hits us nerds, while testing their own version, and assessing where improvements can be made. Either method is fine in the eyes of the masses. It happens to only be us nerds who chastise the latter, and praise the former, which is irrational.

Tl;dr- Saying Apple isn't a tech company because their business model is different is ridiculous. Why does the model change the subject? Why can't people see that there are always different approaches to advancement?

posted on 06 Jan 2017, 13:38 5

48. LebronJamesFanboy (Posts: 478; Member since: 23 Mar 2013)


@trojan_horse

Apple is a tech company.

posted on 06 Jan 2017, 14:42 4

53. mikehunta727 (Posts: 781; Member since: 12 Sep 2014)


Don't care what lyndon420 says, if you don't consider Apple a tech company you must be on something. Apple is just as much of a tech company as Samsung and others are

posted on 06 Jan 2017, 14:56 1

54. Plasticsh1t (Posts: 1429; Member since: 01 Sep 2014)


He's just spewing bulls**t like he always does.

posted on 06 Jan 2017, 14:56 3

55. trojan_horse (Posts: 3215; Member since: 06 May 2016)


Yes, Apple is... Didn't say the contrary, did I?

But howmuch of a tech company is Apple? Certainly not more than Samsung is.

I mean seriously? Would you put Apple and Samsung in the same level of qualification to the "tech company" moniker?

A company which outsources MOST (if not, ALL) of it's products... versus a company who not only manufactures the vast majority of it's products, but who is also a supplier of components to other companies (including the aforementioned Apple)!

Once again, I didn't say Apple isn't a tech company... Just said Apple doesn't fully meet the "tech company" labeling, but meets it narrowly and certainly doesn't meet it as much as Samsung does.

So what's your pointless point, @LebronJamesFanboy?

posted on 06 Jan 2017, 15:02 3

56. trojan_horse (Posts: 3215; Member since: 06 May 2016)


You, of all people, talking about me spewing bulls**t?

SMH

posted on 06 Jan 2017, 15:04 1

57. trojan_horse (Posts: 3215; Member since: 06 May 2016)


@mikehunta727, read post #55

That's all I have to say in response to your reply.

posted on 06 Jan 2017, 15:36 1

58. sissy246 (Posts: 3181; Member since: 04 Mar 2015)


"Yes, Apple is... Didn't say the contrary, did I?

But howmuch of a tech company is Apple? Certainly not more than Samsung is"

My God what part of this did you guys not get. He never said they were not. He makes it pretty clear.

posted on 06 Jan 2017, 16:29 1

63. Plasticsh1t (Posts: 1429; Member since: 01 Sep 2014)


If you don't consider Apple as a tech company then yes you are spewing bulls**t.

SMH

posted on 06 Jan 2017, 16:30 2

65. kiko007 (Posts: 4390; Member since: 17 Feb 2016)


"But howmuch of a tech company is Apple?"

What? Am I more of a man than you because I've slept with more women than you have? That's basically the question your asking......and it's irrelevant.

"I mean seriously? Would you put Apple and Samsung in the same level of qualification to the "tech company" moniker?"

That's the fanboy in you talking..... I'll disregard it with this. One company has changed the way people interact with their phones forever. The other has a phone with a pen carried as it's mainstay. Which company/product is more valuable in the eyes of the masses?

"A company which outsources MOST (if not, ALL) of it's products... versus a company"

Learn what outsourcing is. You can't "outsource" products. You can't outsource production of the product, not the product itself.

"versus a company who not only manufactures the vast majority of it's products, but who is also a supplier of components to other companies (including the aforementioned Apple)!"

By that logic, China is the most power country on Earth. They produce over 60% of all goods made......does that make them a superior entity? Hell no, it means they have abundant resources at their disposal, making them excellent targets for production related tasks.

"Once again, I didn't say Apple isn't a tech company..."

Proceeds to say....

"Just said Apple doesn't fully meet the "tech company" labeling, but meets it narrowly and certainly doesn't meet it as much as Samsung does."

Because logic.....amirite?

"So what's your pointless point, @LebronJamesFanboy?"

His point was that your opinion on what any company is classified as is irrelevant. In the same facet lies music artists. To some, Drake is a rapper. Others see him as a popstar. A small subsect call him an R&B motif. Ultimately, none of them are correct, because the concept of titles such as these are fluid, thus irrelevant. Understand?

Want to comment? Please login or register.

Latest stories