Apple CEO Tim Cook and other top executives at the company were paid less in 2016 for missing performance targets, Apple disclosed on Friday.
The company’s top executives took home a combined 89.5% of their potential cash incentive payouts for the year. Cook specifically received $8.75 million in total compensation, which is a 15% decrease from the $10.3 million he was paid in 2015.
“Overall, our 2016 performance with respect to net sales and operating income was 7.7% and 15.7% below our record-breaking 2015 levels; however, 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,” Apple said in a regulatory filing with the SEC on Friday.
iPhone sales, which make up the bulk of Apple’s revenue, declined each quarter in 2016 on a year-over-year basis. That slowed growth culminated in the company reporting its first annual revenue decline in 15 years last quarter.
Cook reached his five-year mark as Apple’s CEO in August 2016, unlocking 1.26 million shares of Apple stock worth around $135 million. He sold about $36 million of his stock at the time and still has 3.5 million shares that are set to vest over the next five years, depending on performance.
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