Tim Cook's Pay Was $1.5 Million Less in 2016 as Apple Missed its Own Performance Targets

Apple's annual shareholders meeting will be held on February 28 at 9:00 a.m. Pacific Time in the Town Hall building at its Infinite Loop headquarters in Cupertino, California, according to an SEC document filed electronically today. Admission is open to all shareholders of record on a first come, first served basis.

tim_cook_hands_raised
A primary item of business on the agenda is to elect the Board of Directors to serve until the next annual meeting of shareholders in 2018, with Apple nominating the same eight individuals currently serving on its board: Tim Cook, Al Gore, Bob Iger, James Bell, Andrea Jung, Art Levinson, Ron Sugar, and Sue Wagner.

The filing reveals Apple CEO Tim Cook made $8.7 million in 2016, down from $10.28 million in 2015 and $9.2 million in 2014. Cook's earnings included a base salary of $3 million, non-equity incentives of $5.37 million, and other compensation of nearly $378,000. Other named executives netted nearly $23 million apiece.

Apple Executive Compensation in 2016

• Apple CEO Tim Cook: $8,747,719
• Apple CFO Luca Maestri: $22,803,569
• Apple retail chief Angela Ahrendts: $22,902,892
• Apple services chief Eddy Cue: $22,807,544
• Apple hardware engineering chief Dan Riccio: $22,807,544
• Apple general counsel Bruce Sewell: $22,807,544

The filing did not disclose compensation for other key Apple executives such as design chief Jony Ive, operating chief Jeff Williams, software engineering chief Craig Federighi, and marketing chief Phil Schiller.

Apple noted it did not meet its target performance goals for both net sales and operating income in 2016, resulting in the senior executives receiving only 89.5% of their cash incentives. In 2015, the executives received 100% of their cash incentives as Apple met its performance goals for sales in that year.

Update: While Cook earned roughly $1.5 million less from his base salary and non-equity incentives in 2016, it was also the year in which he reached five years as CEO and unlocked nearly $137 million in previously-awarded stock bonuses tied to both his tenure and Apple's performance under his leadership. Accordingly, Cook earned roughly $145 million last year, his biggest payout yet as head of the company.

Tags: Tim Cook, SEC

Top Rated Comments

otternonsense Avatar
53 months ago
I've grown weary of this smug, pontificating buffoon. I hope this salary is the last he'll get, and Apple will promptly change management.
Score: 106 Votes (Like | Disagree)
whsbuss Avatar
53 months ago
Time for change..... clean house Apple board. Get back to innovation
Score: 47 Votes (Like | Disagree)
LordQ Avatar
53 months ago
He might not be the best CEO for Apple and he's definitelynot Steve, but his strong stance on protecting our privacy is what I like about him.
Score: 44 Votes (Like | Disagree)
Lesser Evets Avatar
53 months ago
What does he actually do? He doesn't spur product updates unless it is a phone.
Score: 40 Votes (Like | Disagree)
bluespark Avatar
53 months ago

They've been incredibly profitable under his leadership, why would they fire a successful CEO who has increased profits, marketshare?

I may not be a fan of him, but using the metrics that business people use to measure success/failure. He's been an unabashed success.

He essentially has solved the "big company" problem for Apple, which in a nutshell is that large companies can't achieve the same growth as smaller companies, all else being equal. Thus, and especially in the tech sector, companies that grow very quickly as Apple did often plummet after that. So Cook should get credit for restructuring Apple and its finances to sustain the business legacy that Jobs left. He also brings tremendous supply-chain expertise (a huge thing for Apple, which routinely must acquire components in insanely high numbers, from all corners of the world, in near secrecy and extremely quickly) and has pushed into emerging and difficult markets very successfully. And it's not insignificant that Apple under his leadership has championed data secrecy and human rights in ways that have made a difference. All of this supports your point that Cook has been successful in many ways related to Apple's business.

But is that enough? I would argue that for Apple, it is not. First and most importantly, Apple's legacy is one of innovation, technically and culturally. Although Cook's Apple has innovated to a certain extent with the Apple Watch and the AirPods, none of this is "disruptive" in the way that Jobs achieved multiple times. Worse, Apple is squandering obvious advantages nearly everywhere one looks. Given how many people viewed the MacBook Air as a near-perfect consumer laptop, it's rather astonishing how Apple failed to realize many of that product's strengths when it created the MacBook. The same is true of the MacBook Pro line: the new computers are quite nice in many ways but they simply failed to deliver what the target audience wanted and expected to see. Software like Aperture (Apple's best software product ever, in my opinion), which could have served as a foundation for making Apple a truly dominant imaging/photography platform (including for consumers), was clumsily abandoned. Long-awaited products like the Apple TV were released with glaring issues, many of which ignored real-world concerns and some remain to this day. I of course could go on.

In addition, Apple's product lines are becoming increasingly confused and confusing -- one of the issues that nearly destroyed Apple just before Jobs returned. Who are the computers in Apple's laptop line targeted toward? It's increasingly unclear. What standards is Apple pushing? Lightning, one might have thought after the iPhone 7, only to see the laptops include a headphone jack and appear to advance other ports. Also, contrary to much popular mythology, Jobs was a proponent of industry-standard technology (particularly ports) where Apple's "invented here" offerings didn't offer a clear advantage. It was Jobs' Apple, after all, that championed USB as the replacement for several legacy ports when Apple released the original iMac. Cook could have done the same thing by using USB-C instead of Lightning on the iPhone, and this would have eased much of the headphone jack concern (because any new headphones people had to buy would at least rely on what Apple was advancing as an industry standard, available to all). Jobs also priced Apple's products fairly -- there were many instances in which the market was favorably impressed by a product priced lower than expected (the original iPad was the best example of this) and even where an "Apple Tax" existed, users understood why they were paying more. Not so now. And those things that Jobs didn't do well -- the cloud, for example -- have fared no better under Cook.

In my view, Cook probably was the right person for the job when he was hired. Apple needed someone who knew how to balance stability with structural change while positioning Apple for a sustained "big company" future. Cook did that. Now, what Apple needs is quite different: it needs a restoration of its "startup" ethos and it needs excitement. And it needs these things quickly: a widespread defection from a significant part of the "ecosystem" is now possible and would be extremely damaging. I believe Apple should celebrate what Cook has accomplished and respectfully show him the door.
Score: 31 Votes (Like | Disagree)
elmaco Avatar
53 months ago
"Apple noted it did not meet its target performance goals for both net sales and operating income in 2016,"

Jobs from 1995:

"They didn't have a clue about how to do it and they didn't take any time to find out because that's not what they cared about. They cared about making a lot of money. So they had this wonderful thing that a lot of brilliant people made called the Macintosh and they got very greedy. And instead of following the original trajectory of the original vision -- which was to make this thing an appliance, to get this out there to as many people as possible -- they went for profits and they made outlandish profits for about four years. Apple was one of the most profitable companies in America for about four years.

What that cost them was the future. What they should have been doing was making reasonable profits and going for market share, which was what we always tried to do.

Macintosh would have had a 33% market share right now, maybe even higher, maybe it would have even been Microsoft, but we'll never know. Now it's got a single-digit market share and falling. There's no way to ever get that moment in time back. The Macintosh will die in another few years and it's really sad."
39:30
Score: 26 Votes (Like | Disagree)

Top Stories

iphone 5s black slate

Images of Unreleased iPhone 5s in Black and Slate Shared Online

Sunday January 17, 2021 9:47 am PST by
Twitter user @DongleBookPro has today shared images of a prototype iPhone 5s in an unreleased Black and Slate color. The iPhone 5s was launched in September 2013. The device featured Touch ID, a 64-bit processor, and a True Tone LED flash for the first time. Other new features included a five-element lens with an f/2.2 aperture, a 15 percent larger camera sensor, Burst Mode, and Slo-Mo...
iP12 charge airpods feature 2

Hidden iPhone 12 Hardware Feature Could Still be Unlocked

Thursday January 14, 2021 2:51 am PST by
All iPhone 12 and iPhone 12 Pro models purportedly have a hidden reverse wireless charging feature, according to an FCC filing. The feature has not yet been activated, but could yet be unlocked for an upcoming Apple accessory. The FCC filing suggests that iPhone 12 models contain the hardware for Wireless Power Transfer (WPT) to accessories: In addition to being able to be charged by a...
Top Stories 43 Feature

Top Stories: MacBook Pro, iMac, Mac Pro, and iPhone Rumors, Best of CES 2021

Saturday January 16, 2021 6:00 am PST by
This week was sure a busy one in the Apple world, with a flurry of announcements out of CES early in the week followed by a rash of Mac- and iPhone-related rumors later in the week. The new rumors this week included details on updated MacBook Pro, iMac, and Mac Pro models, as well as a few other tidbits, so make sure to read on below to get caught up! Kuo: New MacBook Pro Models to...
foldable iPhone concept feature

Apple Testing In-Display Fingerprint Sensor for iPhone 13, Foldable iPhone Also in the Works

Friday January 15, 2021 1:46 pm PST by
Apple has started "early work" on an iPhone that has a foldable display, according to a new report from Bloomberg's Mark Gurman. Though testing of a foldable iPhone has begun, Apple has not committed to releasing a device that has a foldable display. Development has not yet expanded beyond a display and Apple does not have full foldable iPhone prototypes in its labs. Like foldable...
16inchmacbookpromain

Kuo: New MacBook Pro Models to Feature Flat-Edged Design, MagSafe, No Touch Bar and More Ports

Thursday January 14, 2021 9:32 pm PST by
Apple is working on two new MacBook Pro models that will feature significant design changes, well-respected Apple analyst Ming-Chi Kuo said today in a note to investors that was obtained by MacRumors. According to Kuo, Apple is developing two models in 14 and 16-inch size options. The new MacBook Pro machines will feature a flat-edged design, which Kuo describes as "similar to the iPhone 12" ...
macbook pro flexgate

Apple Extends 13-Inch MacBook Pro Backlight Repair Program

Sunday January 17, 2021 10:31 am PST by
Apple this week extended its worldwide 13-inch MacBook Pro Display Backlight Service Program, authorizing coverage for eligible notebooks for up to five years after the original purchase date or up to three years after the start date of the program, whichever is longer. The previous cutoff was four years after the original purchase date. Apple launched the program on May 21, 2019 after...
iphone x camera close

iOS 14.4 Will Introduce Warning on iPhones With Non-Genuine Cameras

Thursday January 14, 2021 8:07 am PST by
In the second beta of iOS 14.4 seeded to developers and public testers this week, MacRumors contributor Steve Moser has discovered code indicating that Apple will be introducing a new warning on iPhones that have had their camera repaired or replaced with aftermarket components rather than genuine Apple components. "Unable to verify this iPhone has a genuine Apple camera," the message will...
Apple TV Ray Light 2 Triad

Apple Extends Free Apple TV+ Trials Until July

Friday January 15, 2021 10:50 am PST by
Apple is once again planning to extend its free Apple TV+ trial subscriptions, this time until July. When Apple TV+ launched in November 2019, Apple offered free Apple TV+ subscriptions to those who purchased a new Apple device in or after September 2019. Those free subscriptions were set to expire in November 2020, but in October 2020, Apple announced that it was extending free trials...
mac pro mini feature

Apple Working on Two New Mac Pro Desktops, One of Which Will Be Reminiscent of Power Mac G4 Cube

Friday January 15, 2021 10:23 am PST by
Apple is developing two versions of the Mac Pro to succeed the Mac Pro that was first released in December 2019, according to a new report from Bloomberg. The first updated Mac Pro is a direct successor to the current Mac Pro and it will use the same design. It may also be equipped with Intel processors rather than Apple silicon chips, and it could be one of the sole machines in the Mac...
macbook pro magsafe

MagSafe is Coming Back to the Mac: A Look Back at Apple's Original Magnetic Charging Technology

Friday January 15, 2021 12:16 pm PST by
Surprise late night rumors last night provided us with our first in-depth look at what we can expect from the new MacBook Pro models that are coming in 2021, and there are some significant changes in the works. Along with additional ports, a new flat-edged design, and the removal of the Touch Bar, Apple's updated MacBook Pro machines will readopt MagSafe. MagSafe in the 2021 MacBook Pro...