Apple CEO, Tim Cook takes 15% pay cut for missing sales target

The iPhone maker cut Cook's pay by 15% last year to $8.7 million, according to a filing released on Friday. Apple specifically cited the company's failure to meet its performance goals for both sales and profits. Shrinking iPhone sales last year caused Apple to suffer its first annual revenue decline in 15 years. Now Apple's board is holding its CEO and other leaders accountable for the stumbles. While Cook's salary rose to $3 million from $2 million last year, his cash bonus took a hit. Apple awarded Cook and other executives 89.5% of their target, instead of the maximum amount like in recent years. Last year, Cook completed five years as CEO and nearly 1.3 million of his previously restricted Apple shares vested. The shares were worth about $136 million.
Apple's rare sales slump is directly linked to the loss of momentum for the iPhone, which generates the majority of the tech icon's sales. Sales of iPhones have declined in each of the past three quarters, slipping to 45.5 million in the September quarter. The problem is that Apple has faced steep competition from Samsung and other smartphone makes and the newest iPhones haven't featured enough upgrades to lure customers.