Apple CEO gets 15% pay cut following first sales slump in 15 years
CALIFORNIA: Tim Cook, the Chief Executive Officer of Apple was ‘penalized’ by his company for the iPhone maker’s first sales slump in 15 years with a 15 percent pay cut.
In a statement, the company said that the CEO still did extremely well, with a compensation package valued at $8.7 million for Apple’s fiscal year that ended Sept. 24.
“But the amount was down from nearly $10.3 million in the prior year,” it said.
Explaining the reason for Cook’s pay cut, the California-based company cited a downturn in Apple’s revenue and operating profit as the main reason it cut the pay of its head and other top executives.
According to initial calculations, Apple’s revenue dropped 8 percent to $216 billion, while its operating profit declined 16 percent to $60 billion.
“That was mainly because fewer iPhones were sold for the first time since the device came out in 2007,” the company said in the statement.
The iPhone triggered a revolution in mobile computing and became Apple’s biggest moneymaker, even as a wide range of device makers released competing products primarily running on Google’s free Android software.