Apple CEO Tim Cook is taking a pay cut after the iPhone maker wasn't able to meet the project revenue and profit goals for the year 2016, according to a report from CNBC.
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Before you get too worried, he isn't going to live out on the streets anytime soon.
Cook's annual salary actually went up by $1 million. He received $8.75 million in total compensation for 2016, according to an SEC filing that was posted earlier today. While this seems like a lot, it is actually down from his 2015 haul of $10.28 million.
The reason for the change is because company executives receive about 89.5% of their target annual incentives.
Part of this is due to the fact that the annual sales of Apple products are down 4%, or $215.6 billion. It had a targeted performance of $223.6 billion. The operating income was down 0.5% from its target of $60 billion, per the filing.
"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," Apple said in the filing. "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."