The sale of Apple’s main product the iPhone has been on the decline (the first time in 13 years and a first for Tim Cook since he took over in 2009) and while that is true, Apple services like iTunes, App Store, iCloud and Music have tried to make up for lost grounds over the years, it wasn’t enough to significantly change the company’s standing.
When such things happen, someone has to take the blame for this and this time it’s the CEO and other executives of the company. According to a new filing at the SEC, Tim Cook lost about $1.5m in 2016 compared to the $10m he earned in 2015. He made $8.74m in 2016 just as Apple’s share of the smartphone market continues to shrink well into the last quarter of last year in spite of the iPhone 7 launch in the third quarter of last year and the apparent recall of the Samsung Galaxy Note 7.
In the filing, Apple says “Overall, our 2016 performance with respect to net sales and operating income was 7.7% and 15.7% below our record-breaking 2015 levels…. the 2016 payouts to our named executive officers were significantly less than the annual cash incentive payouts for 2015, reflecting strong pay-for-performance alignment.”
While you may think Tim Cook was the highest paid person in Apple but CFO Luca Maestri, head of retail Angela Ahrendts, hardware Chief Dan Riccio, internet software and services head Eddy Cue and general counsel all earned $22m each.
Apple CEO Tim Cook though made $135m earlier in the year after selling 1 million restricted stock units to common shares.
Tim Cook has previously said he would give away all of his fortune worth about $750m away before he dies according to a report in 2015. The plan involves him paying off his nephew’s education costs though.
Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
