Apple Chief Executive Officer Tim Cook’s salary got slashed by 15% after the company registered a drop in its revenue collection and operating profit for the first time in 15 years. According to a regulatory filing made on Friday, Cook’s compensation package fell from $10.3 million (Rs 68.5 crore approximately) in 2015 to $8.7 million (Rs 57.8 crore approximately) this year.
The company said a drop in the revenue and operating profit were the main reasons for the slash. Apple’s revenue nosedived 8% to $216 billion (Rs 14,36,000 crore approximately) and its operating profit plummeted 16% to $60 billion (Rs 3.99 lakh crore approximately). Officials said the slump was primarily because the sale of its iPhones dropped. This is the first time since 2007 that the company sold fewer iPhones than the previous year.
Apart from Cook, many other top executives were also penalised with a pay cut. Company executives received about 89.5% of their targeted annual incentives, reported CNBC. “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,” said the company in its filing, according to The Guardian.
Although the iPhone proved to be a moneymaker for the company, analysts have found that buyers hold on to their device for a long time. The company’s latest product, the Apple watch, had moderate success.