Apple has been the ‘it’ brand for smartphones ever since the company launched its first iPhone in 2007. However, sales for their over a decade long flagship hardware — the iPhone — seem to be dipping. The company recently saw the biggest decline in iPhone sales in over 3 years. And believe it or not, Tim Cook might be more affected with this decline than most of us suspect him to be.
Due to the sharp drop in Apple’s weakening financial performance, CEO Tim Cook’s annual pay dropped to $11.6 million in 2019 as opposed to $15.7 million in 2018. Cook is paid $3 million as base salary every year and the rest comes from bonuses and other compensations, most of it dependent on the company’s performance in that particular year. In 2019, the company exceeded its sales target by a measly 26 percent which resulted in a $7.7 million incentive bonus. Compare that to the $12 million in 2018 due to a staggering 100% growth in sales target, and the numbers seem dwarfed.
Cook’s pay in 2019 also included another $885,000 worth of benefits, most of which were for security and use of a private jet.
The company also bestowed Cook with $113 million in shares as compensation for his long term relationship with the company as its head. This means that even with Apple’s weakening finances, Cook still took a hefty $125 million home in 2019.
Apple reported net sales of $260.2 billion and an operating cost of $63.9 billion in 2019.
The company is trying to reduce its dependence on iPhones by introducing new avenues for generating revenue. Earlier in 2019, Apple introduced its titanium Apple card in coalition with Goldman Sachs. The card faced severe backlash due to suspicions of differentiating with its female clientele.