Tim Cook became the CEO of Apple back in 2011. If we estimate his salary on annual terms than he earns $10.3 million per year but Unfortunately the man who was behind Jackless iPhone has to face trim in his salary. It is reported that his salary has been cut off to 15% for not achieving the desire targets. Clearly not a good year for the CEO of technology giant.
During 2016, Apple launched many new products into the market which includes a brand new iPhone, a traditional Head Phone Plug-in, also introduced wireless Airpods and a new MacBook Pro. Unfortunately, MacBook pro and earphones failed to gather customers and did not achieve recommended ratings for Consumer Report for the very first time in the history of product industry. According to reports, Cook has failed to meet its both sales and profit targets. The company stated that Apple’s sales have went down for 4 percent which is nearly $215.6 billion and the target actually given was of $223.6 billion. Moreover, Company’s operating income has down 0.5 percent from its original target. Company stated in the filling that:
“overall, our 2016 performance with respect to net sales and operating income was 7.7 percent and 15.7 percent 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 is in the tech industry for last 15 years and this is for the very first time in the history of Apple itself that this company has to face annual revenue decline. Not the salary of the CEO has trimmed off but also the sales of iPhone has declined in many different countries and this also happened first time since the launch of iPhone. There is also a reason behind this decline as China has stepped into the world of smartphones. China is manufacturing smartphones that are much more lower in prices than Apple’s iPhone. Now its time for Apple to think outside the bucket or else the time will soon come when Apple will not be leading as tech giant.