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CEO Tim Cook takes $4 mn pay cut as Apple's 2019 performance dwindles

His 2019 bonus, which is tied to Apple's performance, tallied $7.7 mn, and was calculated based on Apple exceeding its sales target by only 28%; the incentive was $12 mn in 2018

PTI/AFP  |  San Francisco 

Tim Cook, Chief Executive Officer, Apple
Tim Cook, Chief Executive Officer, Apple

Apple chief saw his annual pay slip to $11.6 million in 2019 after the company registered a weaker financial performance compared with the previous year, according to documents filed Friday.

Cook, who took home $15.7 million in 2018, is paid a base salary of $3 million, in addition to a bonus and various compensations.

His 2019 incentive bonus, which is tied to Apple's performance, tallied about $7.7 million, and was calculated based on the fact that Apple exceeded its sales target by only 28 per cent.

That compared with $12 million in 2018, based on the company exceeding its sales target by 100 percent, the filing with the Securities and Exchange Commission said.

Cook's 2019 pay was also reported to include another $885,000 worth of benefits, most of which were for security and use of a private jet.

"For security and efficiency reasons, the board requires Mr. Cook to use private aircraft for all business and personal travel," the filing said.

Apart from his salary, Cook also saw more than $113 million worth of Apple shares become vested as part of his long-term compensation as head of the firm, according to the filing.

As iPhone sales have weakened, Apple has been shifting to earnings from digital content and services sold to the legions of fans of its devices.

Apple reported net sales of $260.2 billion and operating income of $63.9 billion for 2019, it said in the filing.

First Published: Sat, January 04 2020. 12:11 IST
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