Apple cuts CEO Tim Cook’s pay after company misses 2016 targets

“Apple Inc. said Chief Executive Tim Cook and other leaders received less total compensation in 2016 as the company missed its revenue and profit goals for the year,” Austen Hufford reports for The Wall Street Journal.

“According to a regulatory filing on Friday, Apple said its annual sales of $215.6 billion were 3.7% below its target of $223.6 billion, and its operating income of $60 billion was 0.5% short of the $60.3 billion target,” Hufford reports. “As a result, company executives got 89.5% of their targeted annual cash incentive.”

“In all, Mr. Cook received $8.75 million in total 2016 compensation, down from $10.28 million in 2015. Mr. Cook’s pay fell 15% last year versus a 9.6% average decline for Apple’s other named executives, as cash incentives make up a larger percentage of his compensation. Pay for Chief Financial Officer Luca Maestri fell 10% to $22.8 million, which includes about $20 million in stock awards,” Hufford reports. “In a filing last August, Mr. Cook said he received 1.26 million Apple shares, valued around $135 million at the time, that previously were restricted. Mr. Cook earned the bulk of the shares by remaining CEO for five years.”

Read more in the full article here.

Apple's Tim Cook, operations genius
Apple’s Tim Cook, operations genius
MacDailyNews Take: In theory, this would wake them up. In reality, they’re all fabulously wealthy many times over (How will Maestri ever survive on a mere $22.8 million per year? And, Cook, on just a paltry $8.75 million? Woe is them! Cupertino’s soup kitchens will be overwhelmed) and we worry, based on copious and ever-compounding evidence, that Tim, Jony, Phil, Eddy et al. have lost their motivation, which is, to remind, to delight and satisfy Apple customers, not to rest on their laurels, miss (or don’t even bother making*) shipping products during the crucial holiday shopping season, and saddle customers with buggy, inelegant software and services that do not measure up to the standards that we expect of Apple Inc.

*4K Apple TV, updated iPads, updated iMacs, salable Mac Pros, etc.

70 Comments

  1. Steve used to work for $1 per year, his priorities were different.

    This won’t make any difference, as they’ve been missing user’s targets for years now.

      1. No. In fact, STFU, liar.

        Steve Jobs worked because he was driven. He strived for perfection. He worked for Apple users, not for shareholders, or to promote personal agendas, or for whatever else Tim Cook thinks he’s there for, but isn’t.

        Being the richest man in the cemetery doesn’t matter to me. Going to bed at night saying we’ve done something wonderful… that’s what matters to me. – Steve Jobs

        1. Plus Steve was ‘the founder of apple along with woz’ : people who create businesses don’t do it for money, they do it to create something amazing that is their passion.

          Cook is an employee CEO, his motivations will never be the as the founders of Apple, if they were he would do it for a dollar a year too.

        2. You know what, I didn’t write the story. It was out there, even on Apple pages.
          At worst I repeated bad information, but I did not “lie”because I didn’t originate the story.
          You however are a TOTAL a-hole on your own merit.

        3. Firsty: a little civility goes a long way. applecynic is not a liar, it’s well documented how Steve and the leadership team lined their pockets using backdated options. We get your point, but purity in compensation isn’t a trait Apple or any corporation offers. No matter whether a company makes or loses money, executives always gain big.

          1. Driven by what? The greatest leaders I know donate their bonuses to charity and reject pay increases so they can pay their employees more. Apple isn’t led by people like that, not now, not ever.

            Let’s not get confuse compensation with dedication, or dedication with success. Cook is convinced he’s doing great because the iOS store print money. Unfortunately all of Cooks dedication to iOS has resulted in Apple losing the edge in absolutely everything else it used to do so well.

      2. You do know that the stock options were not “backdated”, don’t you? (Guess not) You do know that the strike price of those options were based upon a questionable practice that at the time was common in the industry of choosing an optimal strike price from recent past months events? (Guess not) And, most importantly, you do know that Steve Jobs gave up those stock options when the issue arose that the there was some cloud over those options?

        Steve never got any of that stock. He did not work for “backdated stock options”. That’s a simple lie. People need to stop repeating that lie.

        1. Hey Jackass go eff yourself calling me a liar. It’s a well documented part of his compensation. Perfectionism wasn’t in his contract, that was a personal trait.
          I love my job too, that love is not part of my compensation package. Only to me.

    1. The real issue is what MDN missed.

      If you cut the compensation package of the bean counters and marketers they will just work harder to figure out how to get more beans to count and different ways to market the same old crap.

      Right now the bean counters and marketers are in charge.

      So… Cutting their compensation might embarrass them a tiny bit and it might get them to work harder, but it will result in more of the same. It will not change the fundamentals of where Apple is going at the moment. It won’t change the current trend of “Fashion and Thin & Light is EVERYTHING”. It won’t change the fact that the current thinking is that Apple’s new Taj Mahal of an office space will make Apple a better company. It won’t change the focus of increasing Apple’s cash flow based on Apple’s percentage of other people’s work (e.g., the recent news on the iOs related App Store) is the way to increase Apple’s bottom line as opposed to Apple just simply making better and leading edge products.

      More and more it’s starting to look like the only way to correct Apple’s course is either a) Apple’s senior management realizing the way they were doing it 15 years ago was better for everyone (customers, Apple’s employees, and even the company Apple itself) or b) get rid of the current crop of executives and bring in fresh, much hungrier blood.

  2. Money is not an issue with these folks, But hopefully a public slap from the BOD will be. No one likes to be publicly held up as a failure. The proper response would be to double down and make something happen.

      1. The real issue is that these guys should NOT be making 20+ million a year if the company is not beating expectations! Even if they are barely making expectations they should not!

        Tim Cook’s compensation over the past 5 years has been over $35 million a year when stock is included. Even if Tim Cook never made another penny, he’d be set for life. Cutting his income by just $1.5 million a year does not hurt his pocketbook one bit.

        And, remember, there’s another huge stock grant looming for Tim Cook in four years as the original agreement was a huge chunk becoming unrestricted in five years with the rest becoming unrestricted in 10 years. I’ve seen nowhere that Apple has changed that original agreement. Thus a huge fraction of Tim Cooks compensation for last year and the next four years has nothing to do with his annual compensation.

        Tim Cook could coast for the next four years, get his big stock package, bail out in five years and go buy an island somewhere to live on for the rest of his life. Apple’s customers be damned.

    1. Money is the issue for customers, as Tim and company saw this miss ahead of us and that is why the MacBook Pros got a significant price bump and the same will Happen to the iPad and desktop Macs this year. If you can’t make something the masses want bump the price for the few that want what we have.

  3. If Tim doesn’t introduce a streaming service w/4K TV soon Apple will left in th dust. Tim should have bought Netflix for 15B when he bought the trash BEATS for 3B. Now Netflix is 60B. 2016 was a year to rip off loyal Apple customers for Tim, Eddy and Co. Outdated new Non 4K Apple TV (pulling by a sting, still a hobby BS), outdated entir Mac line, outdated Router design, outdated IWorks, subpar by a mile Apple Music, destroyed ITUNES, no streaming, more watch bands for a compromised dud product, and compromised overpriced new MacBook Pro line. First in 4 years and lack luster. Time for Tim and Eddy to be fired

    1. It’s really difficult to understand why AppleTV doesn’t output in 4K. Even the cheapest Android boxes can do that much. Exactly how much money is Apple trying to save? I don’t have a 4K TV but all the major brand streaming boxes support that resolution. One would almost think Apple is going out of its way not to support 4K. I’d think Apple should at least try to appear competitive with rival products but apparently they simply don’t care.

      I could ask for those in charge of Apple to be fired but what guarantee would there be for Apple to be able to get a better CEO. Apart from Steve Jobs, I honestly don’t recall if there were any outstanding CEOs for Apple. It seems they all were rather lackluster. In fact, I’m scared Apple could end up with someone worse than Tim Cook.

  4. No biggy! Apple just need to use some Slam Unblocker to release all the years of magic that’s stuck in that amazing pipeline Tim keeps harping on about. Then you’ll see his salary sky rocket again and we’ll all be able to sleep easy.

  5. MacDailyNews’ take is right on the money.

    It’s hard not to get the sense that many/most at APPLE are full of themselves, thinking they are invincible simply because they are APPLE. My advice is to stop reading your own PR and start worrying about everything. Microsoft may still not be worth more that a warm pile of shit but those bastards sure seem to be working harder right now to gain mind share. Look at their efforts with the NFL where they are paying the NFL $400m a year for coaches and players to use the Surface. And look at all the TV and print ads for Surface. The thing may not be worth much but slowly they are making gains. And how is it we are not gaining on the desktop? WHO LET THAT SLIP?!!! FIRE THEM! THE MAC SHOULD RULE! GEEZ! WHY NOT DO ADS ABOUT IBM ADOPTING THE MAC IN MASS AT CORPORATE HEADQUARTERS? WHO IS IN CHARGE OF ADVERTISING?

    So, put down the latte, put down the latest press release saying APPLE is the coolest, and GET BACK TO WORK! And upper management… if you can’t think outside the box so that every scientist, artist and number cruncher wouldn’t be caught dead using anything but a Mac, then you need to be let go. APPLE BOARD OF DIRECTORS… we should be ruling the world, but are far from it. Wake up to the latest numbers indicating a downward trend on the desktop.

    And while I’m bitching, how is it that Amazon, who wasn’t even in the game when SIRI came out now is considered the coolest thing in town? Hell, you don’t even hear anything about SIRI anymore. Everyone’s AI device is being mentioned more than SIRI. SIRI should be kicking butt. Good Lord, it’s too frustrating for someone who has used Apple since the late 70s, was the first on campus to own a Mac, sold everyone on AppleTalk networking when IT had decided on Ethernet, but couldn’t network anything with it at the time, and so on. So many of us owned the Mac and the stock during the horror years when it looked like the company was going down. And now, to see it showing signs of weakness and confusion when it should be taking over everything… well, it’s painful and especially frustrating.

    The company is doing great things and creating great products but it needs to do more. We don’t want to become IBM, Microsoft, Compaq, Dell, DEC, SUN, etc. Those all should be lessons for APPLE management. In some of those cases it was rapid changes in technologies. But in the others, it was faulty management and a belief they were invincible. I worry we are seeing something similar happening at APPLE.

    1. I will add that Apple is already Losing its cool factor with kids that Steve Jobs Worked so hard to build. Eddy Cue the fat barefoot buffoon you see courtside at NBA games and the creepy looking mid life crisis guy on th Ferrari board has destroyed ITUNES, Apple Music is a failure, storage prices on ICloud were so out of whack for months. Same guy who shows up late no socks for a Time Warner meeting so he screwed up the streaming service prospect. His idea of cool is Planet of the Apps. Fire him and get hungry people in there.

      Tim has left education fall to Google chrome books because they only can concentrate on phones.. it now after 5 years of marginal updates now he desides to keep same design. Tripping over billions to save penny’s

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