Tim Cook takes pay cut after Apple misses 2016 revenue targets

Apple’s 2016 was a year marred by falling iPhone sales, and executives are now paying a price.

In a regulatory filing released Friday, Apple disclosed 2016 net sales of $215.6 billion, 3.6 percent short of its target of $223.68 billion. The tech giant’s operating income of $60 billion also fell short of targets by .5 percent.

As a result, Tim Cook and a number of other Apple executives received 89.5 percent of their incentive-based pay, as opposed to 2015 when executives maxed out their potential cash bonuses.

The SEC report lists the earnings of six executives in addition to Cook, including CFO Luca Maestri, Retail SVP Angela Ahrendts, Internet Software and Services SVP Eddy Cue, Hardware Engineering SVP Dan Riccio, and General Counsel Bruce Sewell.

Cook has a base salary of $3 million and the rest of the named executives have a base pay is $1 million. If Apple meets net sales and operating income goals, each executive has the potential to earn up to four times their base salary. Cook ended up earning $8.75 million in total compensation for 2016, down from $10.28 million the year prior. The other executives saw total compensation drop by more than $2 million.

Apple faced declining revenue throughout 2016 as a result of shrinking iPhone sales and the long, slow death of the iPad. The iPhone slump caused the most damage, as sales of the device account for 63 percent of the Apple’s annual revenue.