Apple Boosts Pay of CEO Tim Cook

Tim Cook

A year after delivering an unusual pay cut, Apple Inc. gave Chief Executive Tim Cook and other top executives a big boost in compensation for fiscal-year 2017 as the company exceeded annual sales and profit goals, according to a security filing on Wednesday.

The Wall Street Journal is reporting Cook’s total compensation for the fiscal year, which ended in September, jumped 47%—to $12.8 million—the largest bump among the five executives listed in Apple’s annual proxy filing. Mr. Cook’s pay increase was driven by his cash bonus, which was hinged on exceeding the revenue and profit targets set by the board.

Apple’s sales improved in fiscal 2017 on strong demand for newer devices, including the iPhone 7, the MacBook Pro and the iPad Pro. The company also benefited from another year of more than 20% sales growth from its services business, which includes iTunes, Apple Music, Apple Pay and App Store sales.

Apple’s slump in 2016 took a bite out of the total compensation of Mr. Cook and the rest of the executive team. His compensation fell 15%—all in reduced cash bonus—as Apple failed to meet financial goals because of a sharp decline in iPhone sales and a major downturn in the company’s China business.

The rare miss of its own internal sales targets amplified the pressure Mr. Cook faced in 2017. Apple responded by improving sales results in China and releasing a trio of new iPhones—the iPhone X, 8 and 8 Plus—that investors bet would spur another cycle of record sales of the company’s most important product line. Its stock price increased 37% during Apple’s latest fiscal year.