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Apple CEO Tim Cook’s pay declines after weaker 2016 performance

It appears that 2016 was a bad year for Tim Cook, too.

The Apple CEO compensation for the year took a hit, according to a recent regulatory filing, after the iPhone maker missed its revenue and profit goals for the year.

Although Cook's annual salary went up by $1 million, he received $8.75 million in total compensation for the year, according to an SEC filing posted on Friday. That was down from the $10.28 million he received in 2015. Company executives received about 89.5 percent of their targeted annual incentives.

During the year, Apple rolled out a new suite of products, including a new iPhone that all but made the traditional headphone plug-in obsolete. Toward that end, the company unveiled its new wireless Airpods, as well as a new MacBook Pro. Yet the earphones and the laptop had a mixed reception, as Consumer Reports failed to give the MacBook its seal of approval—an ignominious first for the company.

The company said its annual sales were down nearly 4 percent, or $215.6 billion, from its target of $223.6 billion, and its operating income was down 0.5 percent from its target at $60 billion, according to the filing.

"Overall, our 2016 performance with respect to net sales and operating income was 7.7 percent and 15.7 percent below our record-breaking 2015 levels," Apple said in the filing. "However, the 2016 payouts to our named executive officers were significantly less than the annual cash incentive payouts for 2015, reflecting strong pay-for-performance alignment."

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