Apple’s executive team get pay cuts after missing 2016 sales targets

Modern Apple is highly dependent on the success of the iPhone as a luxury product.

Fortunately for the tech giant, sales and profits stemming from the iPhone have dwarfed every other technology product for the last several years. However, at a certain point, it becomes impossible for sales to continue to grow at such a rapid pace. For the first time in years, Apple’s executive team will feel financial effects of missing performance and sales targets, according to an SEC filing from the company this week.

One widely shared piece of information from the report pertains to the total pay of CEO Tim Cook. Cook’s total pay dropped by 15 percent compared to last year, even though his base salary increased. What did decrease were the performance bonuses given to Cook and the rest of the executive team, because while the company still made money hand over fist, profits shrank compared to last year.

Compared to the rest of the Apple executive team, Cook actually earns the smallest salary, though most of his earnings come from bonuses and company stock holdings. While iPhone sales have slowed, the company’s stock ended last year up 10 percent. Apple’s financial situation in the wake of the release of the iPhone 7 through the holiday season will become clear when the company reports its quarterly earnings at the end of January.

[source]CNN[/source]