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

[apolloa]

A utterly disgusting portrayal of complete arrogant wealth! That means they must earn more then the average wages of their store staff for a year, every half a day if that!

I find it very unsettling the massive huge gap between the elitist super rich and the normal people in this capitalist world. Children literally dying in third world countries whilst corrupt governments and charities pocket all the money donated to them, and CEOs are paid millions every year.

Truly one f***** up world this can be.

 

[Black Magic]

Yah, I was surprised by that. The rest are making 2.5x what he's making (other than the $137 million he unlocked in 2015). We see him in the media so much, but rarely the others. What do they do, just show up for weekly meetings, and that warrants 22 million a year? (just kidding, I'm sure they do a ton, but jeez, that's a lot of dough!)
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I'm confident (hopeful?) that Apple's new Spaceship Campus is the reason things have been in a lull lately. Once they get cooking in their new home, we should see some amazing output of products and services.... I hope.

Honestly, I think they should revisit the TV. I believe they could easily challenge Samsung in the Smart TV sector. Also, I would like to see them branch off into the HomeKit Accessories market (specifically security cameras).

 

[Attirex]

There's something here that Steve Jobs wouldn't have done?

 

[Carnegie]

Why would his compensation be less than Cue and Riccio's? He's certainly not less important than those two.

I can't say for sure, but I suspect that Mr. Federighi's compensation (in 2016) wasn't substantially less than theirs. But if it was, I can't say why Apple thought that should be the case.

We could be talking about a pretty small difference. It could, e.g., be that Apple's contributions to Mr. Federighi's 401(k) plan were just a little less than its contributions to Mr. Cue's and Mr. Riccio's. That was the case for Mr. Maestro and it resulted in his total compensation being about $4,000 less. Had he not been the CFO, but had the same compensation, his total compensation would not have been reported even though the only difference between his and those other executive officers' compensation was that small amount. It could even be something as small as the life insurance premiums that Apple paid for Mr. Federighi being a little lower than those of Mr. Cue and Mr. Riccio because he is younger.

We don't know whether Mr. Federighi's total compensation was $2 million less than the others or $200 less, we only know that it was something less. That's what determines whose total compensation gets reported.

All 9 of the executive officers (not including Mr. Cook) received the same RSU grant back in October - the same number of RSUs granted under the same terms. And it is those grants which account for the great bulk of their respective reported (or in some case unreported) total compensation. It wouldn't surprise me if they are all being paid the same base salary and non-equity incentive compensation as well. Even if they aren't, their total compensation would still be in the same ballpark.

 

[naeS1Sean]

Honestly, I can imagine the bills. I can't relate at all but when you are someone like Eddie with a few kids and a feverish love of Ferrari, there are many ways to spend that kind of money. I believe the numbers are pre-tax but these guys likely have corporate CPAs that make sure they optimize contributions as much as possible.

Also remember that Jony is no longer a VP so doesn't have to reveal his salary but I'd assume it's around here anyway.

I could easily spend 22 million a year. Can think of a lot of ways to spend that kind of money.

Me too. I have expensive taste...lol

 

[8281]

If you read the whole article, it looks like Tim gets paid a lot less than other executives at Apple. So many angry people in here just posting negativity anytime his name comes up. He does not need to tie his salary so much to incentives, and I bet his 3 million base is significantly lower than other, much less successful CEO's.

When you're making that much do you really care? He also owns millions in stock.

 

[PowerGala]

Al Gore ?

What on earth does he bring to the table ?

He protects Apple from ManBearPig.

 

[George Dawes]

1. Make Scott Forestall CEO
2. Fire Jony & Tim

Sorted

 

[Starfyre]

Is Tim's pay much lower than other execs because he elected to take lower pay than other executives?
For someone who all the blame and flaming targets, it seems like the other Apple execs are having it easy despite not meeting performance goals :/

 

[AppleMiko]

Bunch of cry babies. Let your money talk and stop buying Apple products if it's such a terrible company, with terrible roadmap, and terrible innovation, and terrible bah blah blah... You still visit this, and likely many other, Apple news websites daily, for what? For some hope that the perfect product you dream of is going to be unveiled through some leak? Ok.

Tim made lots of money, Apple Execs made lots of money, shareholders are making lots of money, developers are making lots of money, so what!? Spend less time complaining and go figure out a way to disrupt Apple and make some of these profits for yourself, and then YOU give it all away like you expect these people to do.

 

[Negan Lannister]

Aww, "poor" bean counter. Maybe we should feel sorry for him similar to Russ Hanneman in HBO's Silicon Valley not being a "billionaire" and having car doors that didn''t open upwards. Then gifts himself another McLaren when he becomes part of that three commas club again because he isn't some a**hole. But then let's remember Steve Jobs making $1 annually and not give a rat's arse about Tim's finances if he only made $1.5M less last year while other people are struggling to find employment or breaking their backs in their job to make ends meet.

I miss Steve Jobs because it was never about the money for him. He just wanted to leave a dent into the universe.

True...but for the amount of products Apple creates (3 laptops, 3 desktops, some accessories, and an iPad/iPhone/iPod line), I don't see his job being particularly difficult IN THAT he requires this amount of compensation. So, overall, Apple has a very small computer line, a very small accessories line, and a mishmosh phone/tablet/music player line.

Apple has been so uninspiring to me the past few years...it's just new iPhones and iPods every year with, yawn, new colors, 1/12th of an inch smaller, and a new iOS...yawn again. Apple has become a 1-trick pony (iOS). If Samsung's new phones hadn't exploded a few months ago, 2016 would have been a LOT worse for Apple.

2017 is going to be quite difficult for Apple...the latest Macs have nothing but lackluster reviews at best...no sign of Mac desktops...iPads seem to out of ideas...iPhones have been #2 since at least Q1 2016 to Samsung. My guess is that Tim's last year could be 2017.

Spot on and I kinda hope so and Tim just retires because Apple needs a new leader with fresh new ideas. Then again, it is very hard to follow up the greatest CEO ever. Anybody else could have followed Steve and do a worse job. That's like trying to follow up Michael Jordan. I won't totally blame Tim because I doubt the other Apple CEO who wasn't Steve Jobs didn't do any better which includes John Sculley who succeeded SJ and Gil Amelio who preceded SJ's second run.

 

[AppleMiko]

Aww, "poor" bean counter. Maybe we should feel sorry for him similar to Russ Hanneman in HBO's Silicon Valley not being a "billionaire" and having car doors that didn''t open upwards. Then gifts himself another McLaren when he becomes part of that three commas club again because he isn't some a**hole. But then let's remember Steve Jobs making $1 annually and not give a rat's arse about Tim's finances if he only made $1.5M less last year while other people are struggling to find employment or breaking their backs in their job to make ends meet.

I miss Steve Jobs because it was never about the money for him. He just wanted to leave a dent into the universe.

Where does this article say anything about Tim caring that he made less than he did last year? I don't think anyone should feel sorry for him, because he likely doesn't feel sorry for himself. It's just readers like you who interpret this in some cynical way vs just reading a NEWS article and moving on.

 

[trainwrecka]

I would think Jony and Phil actually got paid more than Tim. Phil is easily my favorite of the Apple faces that grace the stage.

 

[Left0verture]

don't worry he has plenty of money in the form of stock that he has gotten or is to come in the future. I don't think he is the right leader for Apple though. I am wondering why Steve suggested him to lead Apple

Wasn't John Sculley also Steve's idea?

 

[SSDGUY]

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.

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 2016o Apple CEO Tim Cook: $8,747,719
o Apple CFO Luca Maestri: $22,803,569
o Apple retail chief Angela Ahrendts: $22,902,892
o Apple services chief Eddy Cue: $22,807,544
o Apple hardware engineering chief Dan Riccio: $22,807,544
o Apple general counsel Bruce Sewell: $22,807,544The 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.

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

I don't know if this has everything to do with failed forecasts, but I've never gotten the sense that Cook has anywhere near the crazy/ruthless/brilliant innovative drive that Jobs embodied. He seems to be more of a figure head, while Ives is busy making everything pretty and thin, but not as powerful as it should be, and certainly not groundbreaking. Those days appear to be gone.

 

[ge0rgieb]

What are your bills like when you make that much? Anyone here know?

Heh...

Answer: "What's a bill?"

 

[0958400]

I am wondering why Steve suggested him to lead Apple

I guess because Steve needed someone who agreed with Steve's lead. That does not make Tim a leader, though. Sigh. He's good at numbers, but he's just not a Steve. And Ivy seems to have gone to some place where no one will ever find him.
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As we learned from the reemergence of Microsoft is that the only fix for stagnation is to replace old thinking. The Ballmer crew was replaced and now Microsoft has surpassed Apple. For Apple to be competitive again Cook, Schiller, Cue, etc. need to be replaced. If not, another company will eventually occupy the space ship building.

I agree with you. I hate to admit it, but Microsoft has managed to impress me with the the boss. I would love to see Forstall back in business, he might have been a pain... but so was Steve at times.

 

[navaira]

A utterly disgusting portrayal of complete arrogant wealth! That means they must earn more then the average wages of their store staff for a year, every half a day if that!

I would love to know how those five people's yearly earnings compare to yearly earnings of all non-top-management employees of Foxconn.

 

[bladerunner2000]

Time for change..... clean house Apple board. Get back to innovation

Drain the swamp!

 

[MH01]

Eddy cue..... How do you do it champ?

 

[9081094]

is the iPhone 7 the best iphone? Yes. It is. Is there some giant compelling reason to upgrade from 6 to 7? no, there really isn't.

You forgot to mention: is there any compelling reason for an Android user to switch to IPhone? I keep hearing Tim telling that the number jumping ship from Android to iPhone were never that high... keeps me wondering why Apple is selling less and every quarter losing more market share to Android.

 

[C DM]

I don't care about what didn't happen or what would have happened. I care about what is happening and what is happening has nothing to do with him. It has been set in motion long before that.

I don't think that can be said. You might certainly think that's the case, but there's nothing to show that what's happening has nothing to do with him and would be happening as it is or even better without him. Since that can't be shown, it's a moot point.
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Thanks for the complete non-answer.



That’s a reasonable explanation. Although, I would expect a signing bonus to be much larger than a paltry $95,000.

Tim has a pretty nice stock option package. $378MM, awarded in 2011. Half vested in 2016, the othe half to be vested in 2021.

But at this level, it’s not about the salary and bonuses. It’s not about the money at all. When you have this much, you have all that you “need.” It’s about the game. The game of running the company.

An answer that shows the originally implied conclusion isn't a given by any means.

 

[DesterWallaboo]

Microsoft's Surface Pro and Apple's almost neglect of their Mac line has almost gotten me to the point of jumping ship on the Mac. And this is coming from a 26 year Mac user.

 

[Johnny907]

Awww poor Timmy. 2017 isn't going to be that much better at the rate it's going so far :-(

 

[timshundo]

Hurry fill in the performance gaps with every dongle, accessory, and service our users could ever need!

What happened to $1 salary with stock price as incentive? Can they bring that back? As I recall it worked pretty well...