Apple CEO Tim Cook's total compensation took a dive for 2016, as the company missed its financial targets for the year. The company's earnings for the year to Sept. 24 dropped 14 percent compared to a year earlier. As a result, Cook's total compensation dropped 15 percent -- despite a 50 percent rise in base salary.
He certainly won't have to start eating ramen noodles -- he made $8,747,719, after all -- but he and fellow senior executives lost out on a few million each because of the poor performance.
Cook's compensation consists of a base salary and an annual cash incentive that can reach be worth four times base salary if the company's revenue and earnings exceed the maximum goals set, as they did in 2015 when Cook received $10.28 million, including $280,000 in "other" compensation.
In 2016, in contrast, the incentive was only 1.79 times base salary, according to documents Apple filed with the SEC on Friday. Luckily for Cook, that $1 million pay rise at the start of the year also receives the multiplier: Without that, he would have made less than $5 million in total.
Apple also provided compensation details for five other executives in its filing. They all made more than Cook.
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(Score: 2) by Runaway1956 on Monday January 09 2017, @01:59PM
100% ditto that post, archfeld.
All the rest of us working stiffs know that our pay depends on performance. If we don't perform, we're out the door, and we don't get paid. Executives need to be brought back in touch with reality. Great performance = great pay. Lackluster performance = lackluster pay. Poor performance = unemployment lines. No golden parachutes allowed.
(Score: 2) by PiMuNu on Monday January 09 2017, @05:15PM
> No golden parachutes allowed.
Assuming he didnt put any of that $10M he earnt in 2015 aside...
(Score: 2) by Runaway1956 on Monday January 09 2017, @06:37PM
I would expect that any intelligent person earning millions in a year would put a nice chunk of that money aside. (that seems to rule out a lot of artists and athletes) We can't go back and take that money from them, so they should be comfortable for the rest of their lives. Just stop the practice of paying them exorbitant rates for having been fired. The day you lose your company's faith and support, you lose your company's financial support as well.
(Score: 0) by Anonymous Coward on Wednesday January 11 2017, @04:24AM
Even if he was paid nothing, he'd still have almost a Billion dollars of Apple shares to fall back on.
Steve was so anti paying taxes, he refused to even have a salary because the tax man may get a little bit.