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

[adamjackson]

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

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.

 

[Fall Under Cerulean Kites]

Is there a performance-based reason Angela Ahrendts amde $95,348 more than her male counterparts, other than Apple trying to remove the “glass ceiling” and even out the compensation averages?

 

[cgtyoder]

That headline is incoherent!

Fixed now - thanks to the owners for the quick turnaround!

 

[Count Blah]

With disillusioned/ignored/ abandoned long time Mac(computer) users advising their family/friends to look elsewhere for their computer needs, I am not surprised that they missed their targets.

Couple that with removing the headphone jack, dust collecting on all the Desktop lineups, thin/thin/thin at the expense of functionality, etc... And you have your answer.

 

[Rogifan]

Craig Federighi is the only executive officer who has never had his salary and stock grants disclosed in an SEC filing. I wonder why? I'm not sure if who they choose to disclose is based on importance but I'd certainly rank him above Dan Riccio. What does Riccio actually do? Jeff Williams owns Apple Watch and Johny Srouji owns all of Apple's silicon. What is Riccio's responsibility besides not updating the Mac Pro and Mac mini?

 

[maflynn]

Because it's a bad metric to use.

No it isn't. If a company is making gobs of money and it because the worlds more valuable under his purview, how can you justify his removal?

 

[shk718]

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

Let's not forget that Apple is kicking butt in chip design. Their latest, the W1, has completely changed the wireless headphone industry.

I think there is a flip side to lower sales - can we say that the iPhone 6 (designed under Cook's watch) was so well designed that more people decided they didn't need to upgrade? Is this a bad thing? From a consumer point of view do we really need to upgrade every year or every 2 years?

I for one think the iPhone 7 plus jet black is amazing, also designed under Cook's watch. This is the best iPhone I've ever had.

Mac OS is still by far my favorite OS - the continuity features are fantastic. I think when Intel gives Apple the chips it wants the new Macbooks will be fantastic.

Apple pay is solid - never had a problem with it - and it's expanding.

Home kit is terrific - I'm very happy they required security chips in all devises interfacing with it.

 

[Vorkeyjones]

And that's despite the Samsung Note 7 disaster.

 

[rizzo41999]

Bloomberg is saying something different;

https://www.bloomberg.com/news/arti...see-pay-drop-in-2016-as-ceo-reaps-145-million

(Stock options)

 

[MrX8503]

Overall I think Tim Cook is doing an ok job. Funny how people expect him to be Steve Jobs and if he's anything less, then he's doing "terrible". Apple isn't going to find another Steve Jobs.

Is there a performance-based reason Angela Ahrendts amde $95,348 more than her male counterparts, other than Apple trying to remove the “glass ceiling” and even out the compensation averages?

I think she got some kind of bonus when they bought her out from Burberry. What I don't get is why the other execs get paid so much more than Tim Cook. Does Tim Cook get paid in stocks?

 

[Vege-Taco]

What the heck do you do with $8.7 million in one year, let alone over $22 million? Yikes!

 

[rixax]

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

Cool, Can you list at least half of them?

 

[TigerWoodsIV]

I'm curious why all these other execs earn around 2.5 times what he does.

 

[MacFinnley]

Everybody is talking about Tim, but look how much Eddy Cue got. Over 22 mio.? Man, he's the first guy I'd fire if I were Tim Cook lul.

 

[C DM]

Because it's a bad metric to use. All Apple products are in limbo under him. Where is that passion for good products and experience? I only see obsession with thinness and making of unreasonable sacrifices in products.

But that isn't the main metric that is used as far as CEO effectiveness and success are looked at from a business/investor point of view.

 

[TigerWoodsIV]

Cool, Can you list at least half of them?

It's really easy to spend that much. Start a rare car collection, buy mansions, buy yachts, buy planes. Or just ask Mike Tyson, I'm sure he'll give you some pointers.

 

[Abazigal]

What does he actually do? He doesn't spur product updates unless it is a phone.

Seems like he has done a whole lot.

The iPhone installed base has grown by 500M users.
The iPad installed base has grown by 175M users.
The Mac installed base has grown by 50M users.
Apple introduced Apple Watch, the company's first wearable product. Approximately 18M Apple Watches, a device positioned as an iPhone accessory, have been sold to date.
Apple is earning more than $6B per year of revenue through app sales via the App Store.
Apple successfully made the difficult jump from a paid music download model to streaming and is approaching 20M paying Apple Music subscribers.
Apple continues to push forward with Apple TV. The company is approaching 10M units sold since the device was updated in 2015.
Apple continues to develop key services including Apple Pay, Messages, and Maps.

His salary is not that all unreasonable when you consider how much he has helped Apple earn.

 

[Dan DeWilde]

Given 40 years or so of research stating that monetary compensation is NOT a motivator for cognitive tasks, why are executive compensation packages loaded with financial incentives?

https://www.ted.com/talks/dan_pink_on_motivation/transcript?language=en

 

[robotica]

Bloomburg is saying something different;

https://www.bloomberg.com/news/arti...see-pay-drop-in-2016-as-ceo-reaps-145-million

(Stock options)

The real story here

 

[Paul Dawkins]

No it isn't. If a company is making gobs of money and it because the worlds more valuable under his purview, how can you justify his removal?

Yes it is. There is a tipping point he will soon reach.

Apple is making money now not because they have great products, but because of brand recognition and everything that comes with it. They should be making money because they have greatest products.


And I stopped having that feeling about Apple long time ago.

 

[jadot]

It's an obscene amount of money. I'm struggling to keep my head above water and even with a pay cut Mr Cook could get me out of debt with about 10 minutes of his day.

I'm not saying that people should or shouldn't be paid whatever they're worth. I'm just tired because I don't get to sleep at night worrying about how I'm going to feed my kids, yet in the grand scheme of things I have a roof over my head, and a safe western lifestyle. Everything's relative.

 

[C DM]

Is there a performance-based reason Angela Ahrendts amde $95,348 more than her male counterparts, other than Apple trying to remove the “glass ceiling” and even out the compensation averages?

All kinds of potential/probable reasons that don't have anything to do with gender or anything related to it.

 

[Dan DeWilde]

Seems like he has done a whole lot.

The iPhone installed base has grown by 500M users.
The iPad installed base has grown by 175M users.
The Mac installed base has grown by 50M users.
Apple introduced Apple Watch, the company's first wearable product. Approximately 18M Apple Watches, a device positioned as an iPhone accessory, have been sold to date.
Apple is earning more than $6B per year of revenue through app sales via the App Store.
Apple successfully made the difficult jump from a paid music download model to streaming and is approaching 20M paying Apple Music subscribers.
Apple continues to push forward with Apple TV. The company is approaching 10M units sold since the device was updated in 2015.
Apple continues to develop key services including Apple Pay, Messages, and Maps.

His salary is not that all unreasonable when you consider how much he has helped Apple earn.

Question: Were these product updates already somewhere in the pipeline when he took the reigns? Would Apple have performed BETTER under the leadership of someone else? How has he DIRECTLY influenced all of the above? How is the company situated for the long-term?

 

[elmaco]

"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

 

[Paul Dawkins]

Seems like he has done a whole lot.

The iPhone installed base has grown by 500M users.
The iPad installed base has grown by 175M users.
The Mac installed base has grown by 50M users.
Apple introduced Apple Watch, the company's first wearable product. Approximately 18M Apple Watches, a device positioned as an iPhone accessory, have been sold to date.
Apple is earning more than $6B per year of revenue through app sales via the App Store.
Apple successfully made the difficult jump from a paid music download model to streaming and is approaching 20M paying Apple Music subscribers.
Apple continues to push forward with Apple TV. The company is approaching 10M units sold since the device was updated in 2015.
Apple continues to develop key services including Apple Pay, Messages, and Maps.

His salary is not that all unreasonable when you consider how much he has helped Apple earn.

But he didn't do any of that. He just gets to take the credit because he is a ceo.