Reduction was approximately $ 1.5 million. The company's annual sales stood at US $ 215.6 billion, 3.7% below the target of US $ 223.6 billion
Faced with its most recent balance sheet, Apple has shown that it has failed to meet its financial goals for the year 2016. As a direct reaction, the CEO's salary, Tim Cook, also fell. The company's profits for the year to September 24 fell 14% over the previous year. As a result, Cook's total compensation fell 15% – despite a 50% increase in his base salary. But of course, nothing that would cause Tim Cook to worry or even save money, given that even so he made $ 8,747,719 a year. However, he and his fellow executives lost a few million each due to Apple's poor performance.
Cook's compensation consists of a base salary and an annual incentive that can be worth four times the base salary if the company's earnings and earnings exceed the established maximum targets, as Apple did in 2015, when Cook received $ 10.28 million, including $ 280,000 of "other" compensation. In 2016, the incentive was only 1.79 times its base salary, according to documents that Apple delivered to the Securities and Exchange Commission on Friday. Fortunately for Cook, this $ 1 million increase given earlier in the year also gets the multiplier: without it, he would have made less than $ 5 million in total.
Apple also provided details of the compensation sheet of five other executives in its SEC filing. In the case, they all won more than Cook.
The five were CFO Luca Maestri, senior vice president of retail Angela Ahrendts, Eddy Cue, executive for software and internet services, Dan Riccio, hardware engineering executive, and general counsel Bruce Sewell.
Each had a base salary of $ 1 million, the same as last year, an annual incentive of $ 1.79 million and shares of $ 20 million. This puts the total compensation for each of the top five executives at around $ 22.8 million, down from $ 25 million the previous year.
Cook did not receive any additional share premium in 2016 – but he is still profiting from the award he received in 2011 when he became CEO. In August 2016, the first 1.26 million of these stock units were worth $ 136 million.
And there's more to come: another 2.1 million units that have not yet been invested will give Cook another $ 237 million (at his current price) when they do.
Of course, these compensation numbers are all tentative: They still require shareholder approval, something the board is recommending. It is also proposing that shareholders continue to approve executive compensation each year, not every two or three years, as they can do.