Apple CEO Tim Cook's 2016 compensation declined after the iPhone maker missed its revenue and profit goals for the year.
He received $8.75 million in total compensation for the year, down from the $10.28 million he received in 2015, according to an SEC filing posted on Friday.
Company executives received about 89.5 percent of their targeted annual incentives.
The company said its annual sales were down nearly 4 percent, or $215.6 billion, from its target of $223.6 billion, and its operating income was down 0.5 percent from its target at $60 billion, according to the filing.
"Overall, our 2016 performance with respect to net sales and operating income was 7.7 percent and 15.7 percent below our record-breaking 2015 levels," Apple said in the filing.
"However, 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."
|© Apple Inc. CEO Tim Cook speaks on stage at the company's World Wide Developers Conference in San Fransisco|
Tim Cook's pay slides following down year for Apple
Apple CEO Tim Cook and other top executives saw their 2016 pay drop after the tech giant finished the year with lower revenue off weaker sales of its flagship iPhone.
According to a filing with the Securities and Exchange Commission, Cook received $8.75 million in total compensation, which includes a $3 million base salary. In 2015, Cook earned more than $10 million.
Other top execs including Eddy Cue, who runs Internet software and services at Apple, and retail chief Angela Ahrendts, also saw declines in compensation for 2016.
The filing says execs received 89.5% of cash incentives for the year, during which Apple reported its first decline in annual sales since 2001. Operating income also sunk from $71.2 billion in 2015 to $60 billion last year.
Shares of Apple are up nearly 1% in Friday trading. For 2016, Apple shares climbed 11%.
The dip in revenue is tied to sales of the iPhone, down from previous years. During the fourth quarter, Apple sold 45.5 million iPhones, a 5% drop from the same time last year.
Meanwhile, a report from Nikkei Asian Review says Apple will cut production of the iPhone during its 2017 first quarter.
This year could provide the iPhone and Apple with a sales rebound. It marks the 10th anniversary of the device, and rumors suggest Apple has big plans for the next iPhone, which should launch in the fall.
Apple cut Tim Cook’s total pay 15 percent last year as it missed its sales and earnings goals
Apple CEO Tim Cook saw his overall pay drop last year as the iPhone maker fell short of its goals with regard to both sales and profits.
Cook received $8.7 million in total pay, compared to nearly $10.3 million the prior year, according to documents filed Friday with the Securities and Exchange Commission.
“Apple was below its target performance goals for both net sales and operating income, resulting in a payout of each named executive officer’s annual cash incentive at 89.5 percent of target,” Apple said in its annual proxy statement.
Cook’s base salary increased from $2 million to $3 million, while his bonus dropped.
For the fiscal year, Apple earned $45.7 billion on $215.6 billion in revenue, compared with earnings of $53.4 billion on $233.7 billion in revenue in the prior year.
Nonetheless, the top six employees listed in the proxy took home more than $100 million in collective pay. That group is made up of Cook, CFO Luca Maestri, retail chief Angela Ahrendts, iTunes and services head Eddy Cue, top lawyer Bruce Sewell and hardware engineering lead Dan Riccio.