Apple Inc. (NASDAQ:AAPL) CEO Tim Cook didn’t make as much last year as he did in 2015.
The Apple Inc. CEO earned $8.75 million from the company for the 2016 year. This is made up of a $3 million salary, 5.37 million from non-equity incentive plan compensation and other forms of compensations.
During the 2015 year, Apple Inc. paid Tim Cook $10.28 million for his services. This included a $2 million salary, $8 million in non-equity incentive plan compensation and some from other forms of compensation.
While Tim Cook’s salary at Apple Inc. did increase by $1 million in 2016, he didn’t earn as much non-equity incentive plan compensation. This is because AAPL pays its executives this compensation based on the company’s performance for the year.
“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% of target,” Apple Inc. said in a filing with the U.S. Securities and Exchange Commission.
This is a change from the last couple of years, which has seen Apple Inc. pay its executives the full 100% of their annual cash incentives. This is most likely due to sales of the iPhone 7 this year. The iPhone line is AAPL’s main source of revenue, but sales were down in 2016.
Tim Cook isn’t going to be strapped for cash just because he didn’t earn the maximum pay possible in 2016. The Apple Inc. CEO also has vested stock that was awarded to him this year. 1.26 million shares of his stock vested this year, which holds a total value $136 million.
AAPL stock was up slightly as of Friday morning.
