Everyone steps into the new year with hope and optimism lighting the way for the 365 days ahead. Apple, however, has stepped into a pile of crap made up of the losses they sustained last year. And their way of cleaning out their stables is by cutting salaries of topmost executives, including Tim Cook, CEO of the enterprise. That’s right,
That’s right, folks. Tim Cook was punished for being a bad boy and not making the company enough money! And you thought you were having a bad day at work.
For the first time in 15 years, Apple is seeing a decline in its revenue – a 7.7 percent decrement in sales, to be precise – which has caused the operating income to fall to 15.7 percent.
Apple provides increments based on overall performance (in terms of revenue) and missed targets mean a pay cut for everyone. However, the compensation committee (in Apple) decides the way the pay cut will be implemented.
This time, the highest paid officials came under the axe. This decision might have left the other employees unaffected for now, but any further drop in revenue will be influencing almost everyone associated with the organisation.
The sales targets are set by the compensation committee and the target was slightly missed this year with net sales as $215.6 billion and operating amount as $60 billion. So, although Cook’s base salary has increased from $2 million to $3 million, his total payout this year was only $8.7 million as compared to the $10.3 million last year.
What has caused this loss of revenue? The 2016 MacBook Pro model, with and without touch ID (13 inches and 15 inches), has put a dent in the company’s earnings. This is probably the first time that a product by Apple was not accepted with open arms by the public.
To reach the set targets, in terms of revenue and image re-vamp, Apple really must come up with groundbreaking technical enhancements for its upcoming releases, be it the MacBook, iPhone, iPad or even the Apple watch. With expectations of that being true, let’s see what the new year brings for Apple.