Apple CEO Tim Cook pays compensation for iPhone failure

Tim Cook’s incentives were cut by 15% owing to fall in sales.

Apple CEO Tim Cook and other top executives of the country faced a cut in their salaries. This step was taken because of the failure of the company to make profits and didn’t meet the sales target.

Tim Cook’s salary for the previous year, 2015 was $10.3 million pa, this year it was cut down to $ 8.7 million. Though the base salary increased from $ 2 million to $ 3 million, the incentives dropped. The company in a report revealed, “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.”

Though the fourth quarter profits for 2016 were better than expected, it’s sales continued to drop for the first three-quarters. Also, the sale of Mac’s and Apple watches has dropped comparatively from the previous year. Though there has been a drop, the top six employees earned more than $100 million when put together. The top six employees include Tim Cook, CFO Luca Maestri, Retails Chief Angela Ahrendts, iTunes head Eddy Cue, legal head Bruce Sewekk and hardware Engineer Dan Riccio.

Apple expects the sales to increase by this month end on the account of Holidays and also the launch of new range of Macbook.