Why is Apple CEO Tim Cook getting a salary cut?

In this April 30, 2015, file photo, Apple CEO Tim Cook responds to a question during a news conference at IBM Watson headquarters, in New York. (AP)

Apple penalized CEO Tim Cook for the iPhone maker’s first sales slump in 15 years with a 15 percent pay cut.

Cook still made out well with a compensation package valued at $8.7 million for Apple’s fiscal year that ended last September. But the amount was down from nearly $10.3 million in the prior year.

The Cupertino, California, company cited in regulatory documents filed Friday downturns in Apple’s revenue and operating profit as the main reason for reducing the pay of Cook and other top executives.

Apple’s revenue dropped 8 percent $216 billion while its operating profit declined 16 percent to $60 billion, largely because it sold fewer iPhones for the first time since the device came out in 2007.

The company expected sales to rebound during the holiday season.

Last Update: Wednesday, 20 May 2020 KSA 09:53 - GMT 06:53