Apple Inc on Friday revealed that it missed its own annual sales and profit targets for the first time since 2009. Apple penalized CEO Tim Cook for the iPhone maker’s first sales slump in 15 years with a 15 percent pay cut.
Cook received $8.75 million in total compensation for 2016 — down from $10.28 million in 2015 — which the company said declined for the first time since he assumed office in 2011. Cook’s base salary, however, rose 50 per cent to $3 million.
The Cupertino tech giant, cited a downturn in Apple’s revenue and operating profit as the main reason it cut the pay of Cook and its other top executives.
Apple’s revenue dropped 8 per cent to $216 billion, while its operating profit declined 16 per cent to $60 billion. That was mainly because it sold fewer iPhones for the first time since the device came out in 2007.
It is the first time ever that, Apple’s annual revenue decreased since 2001, which was just before the company’s late co-founder and CEO Steve Jobs unveiled the iPod. That digital music player set the stage for the iPhone and iPad.
The iPhone triggered a revolution in mobile computing and became Apple’s biggest moneymaker, even as a wide range of device makers released competing products primarily running on Google’s free Android software. Most of the world’s smartphones are powered by Android, but the iPhone remains a popular high-priced status symbol.