The iPhone is Apple’s keystone product, and it’s stumbling. Thanks in part to a tepid response to its latest iteration of the product, the mega tech company saw sales and profit fall in the 12 months ended Sept. 24, the first fiscal-year decline for Apple since 2001.
CEO Tim Cook is personally feeling the blow. According to a new regulatory filing, Cook was paid $8.74 million in 2016, compared to the $10 million he made in 2015. While Cook’s base salary rose by $1 million from the previous year, his annual cash bonus was slashed after the company missed its operating income target and reported a 4% decline in revenue.
“Overall, our 2016 performance with respect to net sales and operating income was 7.7% and 15.7% below our record-breaking 2015 levels,” Apple said in the filing. “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.”
Cook was actually the lowest-paid member of Apple’s executive team this year. CFO Luca Maestri and retail chief Angela Ahrendts each earned more than $22 million in total compensation, as did hardware engineering chief Dan Riccio, internet software and services chief Eddy Cue, and general counsel Bruce Sewell.
But pity the CEO not. Earlier this year, Cook netted himself an extra $135 million from Apple by converting more than 1 million restricted stock units to common shares.