Apple’s CEO Tim Cook and other Apple executives took pay cuts in 2016, as a result of the firm missing the mark on its profit and revenue goals for the year.
Apple reported a yearly revenue of $215.6 billion, 3.7 percent below its 2016 target of $223.6 billion. The company’s operating income, which is earnings before interest and taxes, was 0.5 percent short of its target. The firm reported its first revenue decline in 15 years last October. (RELATED: Apple Experienced First Revenue Decline In 15 Years!)
Cook received $8.75 million in total compensation for 2016, but the figure was still down from $10.28 million in 2015, CNBC reports. Apple executives received just 89.5 percent of their expected annual cash incentives last year.
The company had a semi-lackluster year in sales, as data shows initial sales of the iPhone 7 were down compared to the iPhone 6 model. Some 63 percent of Apple’s revenue in 2016 came from iPhone sales, but still reported a 5.3 percent decline in iPhone unit sales in the fiscal year 2016. Apple will reportedly cut production of the iPhone 7 by around 10 percent in the first quarter of 2017, Newsweek reports.
“Overall, our 2016 performance with respect to net sales and operating income was 7.7 percent and 15.7 percent below our record-breaking 2015 levels,” Apple said in a regulatory filing. Apple said “the 2016 payouts to our named executive officers were significantly less than the annual cash incentive payouts for 2015,” noting that the “strong pay-for-performance” was for meeting revenue goals.
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