Apple CEO Tim Cook's pay slumps along with iPhone sales
Apple will release its quarterly results that include the holidays later this month.
Penalizing the CEO for its first sale slump in 15 years, Apple deducted Tim Cook's pay by 15 per cent.
Despite this, Cook did extremely well with a compensation package valued at $8.7 million for Apple's fiscal year that ended September 24, according to a regulatory filing made Friday. But the amount was down from nearly $10.3 million in the prior year.
According to the reports, the company cited a downturn in Apple's revenue and operating profit as the main reason it cut the pay of Cook and its other top executives.
It is to be noted that Apple's revenue dropped 8 per cent to $216 billion, while its operating profit declined 16 per cent to $60 billion. Most of this was attributed to the less sale of its iPhones for the first time since the device came out in 2007.
Furthermore, this was the first time that Apple's annual revenue decreased since 2001, which was just before the company's late co-founder and CEO Steve Jobs unveiled the iPod. That digital music player set the stage for the iPhone and iPad.
Apple's regulatory filing revealed that the company was bracing for a sales drop last year, although not quite as steep as what occurred, reports said. The compensation committee for Apple's board of directors had established a revenue goal of $224 billion for last year, which would have been a 4 percent decline from the previous year.
The company expected sales to rebound during the holiday shopping season on hopes that consumers would be snapping up its latest iPhones, the 7 and 7 Plus. Apple will release its quarterly results that include the holidays later this month.