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.

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92 Comments

1. bossman

Posts: 264; Member since: Jan 27, 2016

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

60. blingblingthing

Posts: 980; Member since: Oct 23, 2012

Maybe they could install Android on their device.

87. drunkenjay

Posts: 1701; Member since: Feb 11, 2013

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

91. cheetah2k

Posts: 2297; Member since: Jan 16, 2011

It already looks like Android after they copied all the features

2. Joms_US

Posts: 201; Member since: Oct 02, 2016

Stepping down might be a better option.

30. lyndon420

Posts: 6878; Member since: Jul 11, 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.

34. trojan_horse

Posts: 5868; Member since: May 06, 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.

68. sgodsell

Posts: 7577; Member since: Mar 16, 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.

69. kiko007

Posts: 7520; Member since: Feb 17, 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.

66. blingblingthing

Posts: 980; Member since: Oct 23, 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.

70. domfonusr

Posts: 1094; Member since: Jan 17, 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.

3. LebronJamesFanboy

Posts: 671; Member since: Mar 23, 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.

6. maple_mak

Posts: 953; Member since: Dec 18, 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...

14. Acdc1a

Posts: 477; Member since: Jan 21, 2016

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

29. lyndon420

Posts: 6878; Member since: Jul 11, 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.

32. ctdog4748

Posts: 797; Member since: Mar 05, 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 ;)

46. sissy246

Posts: 7129; Member since: Mar 04, 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

71. domfonusr

Posts: 1094; Member since: Jan 17, 2014

As Apple does, so do other companies. There are plenty of scientists and engineers to go around - in May, I will be one of them, and I will be looking for a science job of some sort. Although my training (bachelors, not a Ph.D.) is more along the lines of general physics and math, pharmaceutical biology, semiotics and systems theory - which could take me in a host of different directions - it could be interesting to go into the design process of mobile technology. There are so many other options, though, so we will see. I don't doubt that Apple, and plenty of other tech companies (and yes, Apple is a tech company), hire plenty of scientists and engineers, many with Ph.D.'s. @ctdog4748 - I thought I saw you mention on here once that you have a Ph.D. What is it in, what university did you get it from, and are you employed in that field currently? You don't have to answer that if you don't want to, but I asked because I'm curious, and I am considering a future in academia at some point and would like to hear about the experiences of others. I am also open to advice.

75. ctdog4748

Posts: 797; Member since: Mar 05, 2016

My BS & MS are in Applied Physics, I went through a five year program to attain both degrees. I did my doctoral work on Au (gold) thin film deposition in phase shifted photomasks. I won't say the school (all academic work done at same uni, East Coast USA) nor will I reveal too much about my theisis title, since it's easily accessible online and will potentially reveal info about myself. I did postdoctoral work in the field, and hated the team I was assigned to, so that killed my desire to follow that exact vocation. I then worked as a staff engineer at several wafer manufacturers, and several merchants photomask manufacturers. The worst part of the Ph.D program for me-teaching. I am not ashamed to admit I suffer terribly from anxiety, so suffice it to say that nearly had me dropping the program. I don't want to date myself, but suffice it to say this was before the era of "understanding" anxiety and having access to medications to help control it. Was it worth it getting the Ph.D? For me, no, since I never planned on an academic career, and I should have realized I'd never cut it in any vocation that did require a Ph.D. My postdoc work was at DuPont Electronics (long since shuttered and the team disbanded so I can talk about that a bit) and my first direct boss was also a physicist (Nuclear Physics of all areas), a brilliant guy but very intense, and I made several screwups that did not endear me to him. Wow did I just ramble! Anyhow my advice, if you're passionate and want to do your Ph.D-do it. May I ask what field you're interested in?

77. domfonusr

Posts: 1094; Member since: Jan 17, 2014

Well, I have interests in a lot of fields, but for a long time my favorite was theoretical and experimental particle physics. I got to do undergraduate-level research with my physics professor at Penn State in my freshman and sophomore years... he had been a member of the E760 Collaboration at Fermilab back in the 1990's, and as an emeritus member of the collaboration, he gave me access to the neutral-state data from the proton-antiproton annihilation reaction, which was any combination of the three-prong decay into neutral pions and eta mesons. Under the professor's guidance, I ended up writing a FORTRAN program that simulated the invariant-mass background to the reaction, and used the simulated background to pull intermediate particle signatures (any particle X where ppbar --> Xpi --> pipipi, and X then decayed into pipi) out of the actual data. I had a great time doing that, and even presented some results at that year's NCUR conference, but after that last semester of that, my problems hit me like a ton of bricks. I basically developed schizophrenia with hallucinations, delusions, and paranoia, and had to back out of college until I could get it sorted out. Furthermore, the treatment that ultimately solved my problem was such that I lost some of my memory and skills relating to science and mathematics, among other things, and that was a major setback. I finally returned to college in the fall of 2014, and I had to change my major from physics to just general science. I have since taken a large concentration of classes in biology and CAS, and while I need to get a job and work as soon as possible after graduation, I am considering going back for a Masters in philosophy of science, and maybe even a Ph.D. in semiotics (study of sign systems). I am still very interested in particle physics, but I no longer have the skill required or the concentration needed to complete upper-level work in it with the required grades (C or better to pass).

78. domfonusr

Posts: 1094; Member since: Jan 17, 2014

I also suffer from anxiety, among many other things, and I always find that I under-rate my own performance, especially when it comes to teaching and tutoring. I took a Teaching in Biology teaching assistantship last semester, running two labs and two study groups a week for the introductory biology class sections, and while everyone involved seemed to think that I did great, I have to admit that, inside, I was a nervous wreck the whole time. I didn't completely hate it, but I didn't like it a whole lot either, so teaching is not my preferred vocation either. On the other hand, I love doing research.

80. ctdog4748

Posts: 797; Member since: Mar 05, 2016

It's painfully obvious you are a brilliant young man, and much more intelligent than I was when I was your age. Biology has always been a love of mine but alas, the lab is my Achilles heel; my screwed up nervous system has rendered me too weak, the memory painfully seared into my brain; I was in the sixth grade, and excelled in learning and studying biology, my goal to become a physician. Anyhow, I was among the few chosen for a summer camp in biology, with an introduction to anatomy. The first day of the camp I was so excited! The teacher came, rounded us kids up and brought us to the lab (really just a classroom with some long tables that were moved in) an gathered us around one of the tables. On the table was I could make out what seemed to be a glass box, it in a way resembled a fish tank, but was covered at the moment so I couldn't be sure. Anyhow the teacher said words to the effect that right now we'd be seeing the visceral organs of a mother pig. She then pulled the cover or tarp or whatever it was covering the glass box, and there it was; the fully intact stomach, pancreas and all else. Within a few seconds the shock wore off, I ran out of the class and cried. Long story short (sorry I know I ramble) I was also physically ill for several days, and did not return to the camp. Nor did I ever study biology or anything related ever again. I made several attempts to be sure, but I simply have too weak a constitution to go beyond pictures in a book. I guess my point is, you're doing excellent work, and you owe it to yourself to keep it up.

88. domfonusr

Posts: 1094; Member since: Jan 17, 2014

Thank you so much for the encouragement! I know pretty much for sure that I am going to make it to graduation, and from there I am not yet sure how everything will go, but I am convinced that, whatever direction the search for work takes me, I will be happy in some sense, and able to move forward in life. I'm sorry to hear that you had such a bad experience with biology, but I know you are not alone in that. I have no desire to be a physician; I can handle dissections just fine, but seeing blood from cutting into living flesh, or even just getting a shot from a needle, is really out of my comfort zone. I have met many other students, even from the time of my high school biology classes, who had trouble with the dissections and such. My best friend in college, who took introductory biology with me, always had to have Vicks Vapor-rub with him for our labs, because without it he would get so sick to his stomach from the smell of the formaldehyde that he couldn't continue with the dissections. I never had a really great time dissecting animals either, it just isn't my favorite thing to do, but I have found that I can do it if I have to. Dissecting plants, on the other hand, wasn't so bad... I had a great time dissecting flowers and the like, so I'm much more likely to look for work that deals with plants rather than animals. Thank you again for the encouragement. I will do my best to finish my bachelor's degree with some academic flair, and then seek out whatever is next. I will probably not be around a lot after today, as I will be focused on starting the new semester, but I'll be sure, sometime in May, to let you know how it all went. Have a great weekend!

89. ctdog4748

Posts: 797; Member since: Mar 05, 2016

Fantastic! I wish you much success, and I look forward to hearing from you again. Have a great weekend and an even greater semester!

41. AlikMalix unregistered

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

44. trojan_horse

Posts: 5868; Member since: May 06, 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.

47. kiko007

Posts: 7520; Member since: Feb 17, 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?

48. LebronJamesFanboy

Posts: 671; Member since: Mar 23, 2013

@trojan_horse Apple is a tech company.

55. trojan_horse

Posts: 5868; Member since: May 06, 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?

65. kiko007

Posts: 7520; Member since: Feb 17, 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?

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