Following a drop in revenue for the fiscal year that ended in September 2016, Apple execs missed out on some of their biggest bonuses.
The company had already tweaked compensation at the start of the year by awarding $20 million stock packages to all top execs, except CEO Tim Cook, in October 2015. But those packages are tied even more to performance and don’t start vesting until 2018.
Of course, no one here is headed to the poor house. But with the company experiencing its first annual revenue drop since at least 2003, the board obviously decided not to lower the bar, according to a securities filing today.
The filing reveals the compensation for the following top execs:
- Tim Cook Chief Executive Officer
- Luca Maestri Senior Vice President, Chief Financial Officer
- Angela Ahrendts Senior Vice President, Retail
- Eddy Cue Senior Vice President, Internet Software and Services
- Dan Riccio Senior Vice President, Hardware Engineering
- Bruce Sewell Senior Vice President, General Counsel and Secretary
In the filing, the company writes: “Our 2016 net sales of $215.6 billion and operating income of $60.0 billion were 96.4 percent and 99.5 percent of the respective target goals set by the Compensation Committee.”
This meant that Apple execs did not receive their maximum bonuses:
“As a result, the annual cash incentive payouts to our named executive officers were below target. 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 percent of target. The Compensation Committee determined that no downward adjustments would be made based on Apple’s or an individual’s performance and approved the payout for each named executive officer for 2016.”
Cook, however, did get an annual salary raise from $2 million to $3 million. The other execs got $1 million in salary.
As a result of those big stock packages, the total pay received by Apple execs this year appears much larger than it is in reality: