Tim Cook Takes Massive Pay Cut…. That’s Not Good News

The news is out that Tim Cook who is the CEO of Apple is going to be taking a massive pay cut. How massive. According to the company’s proxy statement, Cook earned just under $100 million. But according to Bloomberg, he’ll be taking a roughly 40% pay cut this year based on “balanced shareholder feedback, Apple’s exceptional performance and a recommendation from Mr. Cook”.

That’s not good news.

The thing is that this might be a hint of things to come when Apple announces their earnings for the September to December quarter, which typically is the time of year that they print money. Given that they had huge issues with getting iPhones out the door during that quarter, and the global economy is not in a good place, Apple and Cook may be getting ahead of what is likely to be a bad earnings release. Or even worse, layoff announcements. Imagine if Apple laid off a ton of people and Cook was still making $100 million a year. The optics of that would suck. And keep in mind that Apple has suffered from bad optics over riots in their Chinese iPhone factories. So this company is likely hyper sensitive to how its being perceived at the moment.

While I am not a financial analyst, I’m going to suggest that you might want to buckle up as this is going to be a bumpy ride.

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