Apple Tops Innovative Company List

[MacRumors]

http://www.macrumors.com/images/macrumorsthreadlogo.gif (http://www.macrumors.com)

Businessweek compiled (http://www.businessweek.com/innovate/di_special/20070503mostinnovat.htm?chan=innovation_innovation+%2B+design_top+stories) their 2007 list of the 50 most innovative companies.

Apple leads the pack (http://bwnt.businessweek.com/interactive_reports/most_innovative/index.asp?chan=innovation_special+report+--+2007+most+innovative+companies_2007+most+innovative+companies) for the third year in a row.

As our first-place innovator for the third year in a row, Apple reigns again. The iPod creator is a master of superb product, store, and experience design. Now that it's invading the living room and the cell-phone market, will it continue the winning streak?

The list was compiled based on volunteer surveys sent to executives of the 1,500 largest global corporations.

Meanwhile, it was recently revealed (http://www.forbes.com/lists/2007/12/lead_07ceos_CEO-Compensation_CompTotDisp.html) by Forbes that despite an official $1/year salary, Apple's Steve Jobs is the highest compensated CEO in America this year at $646 million.

[kwood]

I wish my official salary was $1 a year but still racked in $646 million a year;)

[ejbenjamin]

...and worth every penny.

[JeffTL]

What, of course, that one needs to remember is that Jobs is paid almost entirely in AAPL shares -- a fine way of improving on the principal-agent problem.

[amac4me]

No surprise here ... Apple is leading the way :D

[PlaceofDis]

not surprising at all but good to hear certainly.
hopefully leopard will keep 'em on the top next year. :p

[joachim]

What, of course, that one needs to remember is that Jobs is paid almost entirely in AAPL shares -- a fine way of improving on the principal-agent problem.

Wow, so that's how he makes the money but still signs for a $1/year salary? That is just incredible.

[RRK]

Money and innovation, I can't think of any other lists that Steve would like to top more. :cool:

[p0intblank]

Very nice! Good for Apple. :D

But who the hell would vote this negative? Come on, people...

[cr2sh]

For those of you playing along at home... that's $73,000 per hour, working 24 hours per day.

Or if he's working 10 hour days, that's $177,000 per hour.

I am a freaking loser.

[drumforfun19]

Wow, so that's how he makes the money but still signs for a $1/year salary? That is just incredible.

I can just picture Steve living in his office. taking showers there and everything. The janitors are like "yeah, good night steve." and he just crawls under his desk and goes to sleep because he only makes 1 dollar a year?

... or in reality he can't figure out how to spend all of his money.

[yzp]

great :apple: !

I should really get parts of :apple:...

[dukebound85]

why is nintendo soooooo low (39) when companies like Boeing, Dell and other are ahead. Not saying they arent but nintendo is something special in terms of innovative

[PlaceofDis]

why is nintendo soooooo low (39) when companies like Boeing, Dell and other are ahead. Not saying they arent but nintendo is something special in terms of innovative

while nintendo is a huge innovator in the gaming field, i belive this is intended as overall impact. and well gaming is a pretty niche market, but thats changing right now.

[bigandy]

Meanwhile, it was recently revealed (http://www.forbes.com/lists/2007/12/lead_07ceos_CEO-Compensation_CompTotDisp.html) by Forbes that despite an official $1/year salary, Apple's Steve Jobs is the highest compensated CEO in America this year at $646 million.

oooh, two records :rolleyes:

[iGav]

Hmmmm... Apple's not exactly the Skunk Works™ though really is it? :p

And the Civic maker is 12th. 12th. :rolleyes:

[BlakTornado]

But who the hell would vote this negative? Come on, people...

Me because Microsoft came 5th!

Just kidding.

[MeneL001]

Hey, as an electronics company I don't see anyone else coming up with great ideas for new products. There are other good products around but none like Apple brand.

[Swarmlord]

A well deserved ranking!

[jk8311]

His 5-year salary is slightly more at $650m - so though he was paid $646m last year, he was paid no more than $4m total for the four years prior.

Granted, his 5-year pay still tops the chart, but on average, $130m/year isn't bad for a CEO who has returned 1500% for his shareholders and contributed so much to tech innovation at the same time.

[Maccus Aurelius]

Very nice. Too bad many will maintain that the Reality Distortion Field is what accounts for its high status, and in truth sells us sub par products. Boy, give me a $1 a year salary...I'll use it to buy gum, and chew it vigorously on the way to the bank.

[PostTribber]

we'll worry about the salary cap AFTER I GET MY SANTA ROSA IMAC!!

[drumforfun19]

we'll worry about the salary cap AFTER I GET MY SANTA ROSA IMAC!!

YES, that's what I'm talkin about!

[Maccus Aurelius]

Didn't you hear? They's scrapping Santa Rosa for the upcoming AMD Superfly64 chip, which is being scrapped to make way for the upcoming Intel Prometheus Quad.

[superdork]

I wouldn't call a company that has released one hardware product for purchase so far this year innovative.
See here. (http://www.zenofit.com/?p=12)

[Peace]

This doesn't surprise me.I do have a dumb question though.

HOW does a CEO sell restricted stock and come out clean ?
It's obvious Jobs can't live on $1 a year.

[lazyrighteye]

$1/year = 8 cents/month = 0.3 cents/day = 0.007 cents/hour!

I'm starting a "Save Steve" campaign.
Who's with me?

Oh... wait...

[PostTribber]

Didn't you hear? They's scrapping Santa Rosa for the upcoming AMD Superfly64 chip, which is being scrapped to make way for the upcoming Intel Prometheus Quad.

obviously you've been at these posts longer than I.

[Abstract]

The rankings are crazy. How did Nintendo rank so low for coming out with something so revolutionary in the home video game market?

Same with Merck and their cervical cancer drugs. They ranked nearly 50th, while companies who just stayed on course with everyone else ranked in single digits.


This ranking is just full of boundless stupidity.

[Corrosive vinyl]

HOW does a CEO sell restricted stock and come out clean ?
It's obvious Jobs can't live on $1 a year.

Pixar!!!

[PlaceofDis]

Pixar!!!

well... Disney now. :p

[Rot'nApple]

...and worth every penny.

As long as Apple's stock is performing well.

As a shareholder, received my proxy to vote for Board of Directors, stuff like that. There was a selection, get this, to consider a shareholder proposal if properly presented at the meeting!:D

That can conjure up a few things.

Anyway, a synopsis of a couple of shareholder proposals were "Option Dating Policy" you know, the stuff of news of late regarding backdating options crud... the proposal was a way of preventing it from happening again.

or

"Pay for Performance Standard" - which contained in the proposal words like defined financial performance criteria that can be benchmarked... and long term compensation should utilize defined financial and/or stock price performance... You know instead of like that Home Depot CEO that ran that company's stock price in the ground and left the company still expecting his millions!

Of course, Apple management deemed these as unworthy and how dare you even consider such a thing mentality and the directors recommended a vote "against" them.

I have no problem with anyone in the corporate world making as outrageous a salary as any of your "A-List" Hollywood actors/actresses. I would like to see both areas (entertainment world and business world) become compensated utilizing defined financial and/or stock price performance. Afterall people, it's our money! It's not the risk that is involved. My Apple stock can tank today, that I know. I just would hate to loose out while the ones in control of the company steer it aground and bail with a fortune. Same for movies, if you and your date go out for a show and with tickets, popcorn, candy, drink, you can spend a small fortune as compared to the millions the main "actors" and director and producers are getting. Whcih is fine when the product they are producing lives up to it's word of being entertaining! But why should they be compensated so highly if the movie is lame and does not meet up to it's standards of being entertaining. - ie. the "bizarre and clumsily plotted, "Gigli" is a mess. As for its stars, Ben Affleck and Jennifer Lopez lack chemistry." (http://www.rottentomatoes.com/m/gigli/about.php#consensus) IF I went to see that, I should have been given a full refund if I asked!

[egdiroh]

I wouldn't call a company that has released one hardware product for purchase so far this year innovative.
See here. (http://www.zenofit.com/?p=12)

That comment is neglecting the octo-core macs. But You also have to remember that the Delayed OS actually will delay the hardware. Apple
seldom adds support for new hardware to anything but the current OS, so
all the hardware that was scheduled for a post 10.5 release will be delayed until after 10.5 or by the time it takes to port the drivers and app support.
So I imagine that we'll be seeing a very busy end of the year from apple.

[Cinch]

...and worth every penny.


As a small investor, I find this very troubling. My porxy vote counts very little if at all, and the board of directors lack independent so far as I can tell. A CEO back in the days makes ~5 to 10 times an average employee makes, now it is well above 100X. This trend is very troubling and Apple is leading the way.

Cinch

[karlfranz]

...and worth every penny.

Amen.

[RRK]

well... Disney now. :p

Yeh, isn't he majority owner at Disney?

[IJ Reilly]

If you read into the article, it becomes obvious that Steve Jobs did not receive any stock grants from Apple last year, or any pay beyond the $1 in salary, and that 100% of his "compensation" is appreciation of the value of stock he already holds. So as far as Apple stockholders are concerned, Jobs was paid far less than the advertised $646 million. In fact he was paid nothing.

[BiikeMike]

Honestly, What the heck do you do with over $600 million? I mean, you would have to try REALLY hard to spend that much money. REALLY hard. Like, REALLY.

[theheadguy]

I wouldn't call a company that has released one hardware product for purchase so far this year innovative.
See here. (http://www.zenofit.com/?p=12)
Agreed. The iPhone hasn't been released or even touched by reviewers hands. Plus, the Apple TV wasn't the first attempt to do this. Years behind Windows Media Center, Apple TV debuted in the living room. Granted, Apple TV is a much better product (unless you want features like DVR recording or FM radio, which it completely lacks). But coming out with a better product is not innovative, it's business. So, using this logic, if Apple TV is trumped next year by WMC, then Microsoft is the most innovative? Hogwash.

Let's be realistic people, the iPod was invented years ago now. Time for new "innovation" like that, because THAT was remarkable.

For $177,000 per hour show us something amazing Steve, and not just as shareholders but as fans of :apple: .

[Maxiseller]

I wonder how many schools you can build in 3rd World countries with 600m?

I'm not usually one for the re-distribution of wealth per se (we have enough of that here in particular!) but 600m? Gosh...that could provide a lot of people will water.

I often wonder how much I'd give away if I was worth that. I think, quite a lot.

[dontmatter]

No matter how you look at it, 646 million a year is absolutely absurd. ABSURD.

[IJ Reilly]

No matter how you look at it, 646 million a year is absolutely absurd. ABSURD.

One more time for the cheap seats: Steve Jobs did not earn $646 million last year. While we're at it, we might as well figure out how much his Disney stock holdings appreciated last year and call that his salary for serving on the board of directors.

[Multimedia]

Apple's Steve Jobs is the highest compensated CEO in America this year at $646 million....and worth every penny.Ditto. You beat me to exactly what I planned to write ejb. :)

[lazyrighteye]

IMO, no one human is wort that much money.

[RRK]

No matter how you look at it, 646 million a year is absolutely absurd. ABSURD.

Absolutely, this amount of money cannot possible be given to one citizen. It is sure to upset the lower class and could lead to revolt! This type of elitist behavior should be discouraged. I propose we nationalize his holdings.;) ;)

[SPUY767]

Simple fact is, Steve deserves every red cent of the money that he makes. Ford's CEO makes 28 million a quarter, how well is ford off financially? Steve took a company that was on the brink of oblivion, and through determination and brilliant leadership, made it one of the finest tech companies in the world. I wouldn't care if that were being paid in cash.

[theheadguy]

IMO, no one human is wort that much money.
Oh, but he's not human. He's Steve.

Just read the posts above. :rolleyes:

[Counter]

Isn't there a minimum wage in the US? How does Steve get around this?

[dartzorichalcos]

Apple has always been an innovative company and will continue to be innovative.

[Rocketman]

I wish my official salary was $1 a year but still racked in $646 million a year;)

The federal and state governments get almost as much of that as he does and they performed no work.

Rocketman

[yzp]

Meanwhile, it was recently revealed (http://www.forbes.com/lists/2007/12/lead_07ceos_CEO-Compensation_CompTotDisp.html) by Forbes that despite an official $1/year salary, Apple's Steve Jobs is the highest compensated CEO in America this year at $646 million.



I don t care about that... His company's products, :apple: products, work great!

[zap2]

I wouldn't call a company that has released one hardware product for purchase so far this year innovative.
See here. (http://www.zenofit.com/?p=12)

Mac Pro
AppleTV
iPod Shuffkes in Color
New Airport extreme base stations


All released this year!!


Not to mention Apple's a hardware/software company, so ignoring software as an area for innovation would be stupid, and ignoring more stuff Apple has worked on.


Also I'm never going to trust a source that doesn't know its iPhone not Iphone!

[mrrory]

Honestly, What the heck do you do with over $600 million? I mean, you would have to try REALLY hard to spend that much money. REALLY hard. Like, REALLY.

I could do it. Spending it year in and year out might be a little harder. But if someone dropped $600m into my account, I could make it disappear pretty quickly.

Who wants a mac? :D

[Rocketman]

If you read into the article, it becomes obvious that Steve Jobs did not receive any stock grants from Apple last year, or any pay beyond the $1 in salary, and that 100% of his "compensation" is appreciation of the value of stock he already holds. So as far as Apple stockholders are concerned, Jobs was paid far less than the advertised $646 million. In fact he was paid nothing.

What was the direct source for that?

It seems to me a stock appreciation is taxed at cap gains rates of 15% vs income tax rates of 55% net. That incentives not only more income as a magnitude, but more shifted to stock vs bonus, and also makes a diversity of recipients practical and desireable.

That's good for Americans.

If the iPhone were to "outsell expectations", one would EXPECT a stock split and maybe even a one time dividend ala Microsoft. What would Apple have to pay IN CASH to outdo Microsoft's dividend on a per share basis?

Rocketman

[Analog Kid]

Honestly, What the heck do you do with over $600 million? I mean, you would have to try REALLY hard to spend that much money. REALLY hard. Like, REALLY.
What's a really big Xserve cluster go for these days?
I often wonder how much I'd give away if I was worth that. I think, quite a lot.
With two companies and a family, I suspect he has trouble finding time to figure out where to give it away to... Why do you think Gates just spun it all into one big donation to a foundation charged with figuring out where to give it away to? For most of these people, I think the donations are suggested by their tax accountants.
The federal and state governments get almost as much of that as he does and they performed no work.

Rocketman
Sorry? You walking to work across the fields? Living someplace with out police or fire protection? Skip school? Live outside the US military umbrella?

You may not like how all of your tax dollars are spent, but it's not like the government is some ancient king counting his gold coin. Currently the government is doing more work than they're being paid for while we promise our kids will pay them back later...

[spotlight07]

But why should they be compensated so highly if the movie is lame and does not meet up to it's standards of being entertaining. - ie. the "bizarre and clumsily plotted, "Gigli" is a mess. As for its stars, Ben Affleck and Jennifer Lopez lack chemistry." (http://www.rottentomatoes.com/m/gigli/about.php#consensus) IF I went to see that, I should have been given a full refund if I asked!

Reminds me of Little Rascals "Pay As You Exit" :D

Back on topic though, no amount of money could thank Jobs for the turnaround job he did for Apple, IMHO.

[IJ Reilly]

What was the direct source for that?

The tables here (http://www.forbes.com/lists/2007/12/lead_07ceos_Steven-P-Jobs_HEDB.html), which are a bit confusing, but by my reading indicate that his compensation is in gains from exercising vested stock options. Apple also pays the costs for operating his bizjet, which may also be included in this figure as "perks," but it's difficult to be certain.

[Rocketman]

Mac Pro
AppleTV
iPod Shuffles in Color
New Airport extreme base stations
All released this year!!


iPhone consumes considerable software, hardware, marketing and FULFILLMENT resources (labor, goods, real estate, capital).

[Rocketman]

Sorry? You walking to work across the fields? Living someplace with out police or fire protection? Skip school? Live outside the US military umbrella?

You may not like how all of your tax dollars are spent, but it's not like the government is some ancient king counting his gold coin. Currently the government is doing more work than they're being paid for while we promise our kids will pay them back later...

The gas tax (a separate tax from the income tax and capital gains taxes Steve pays) pays for roads.

Let's say they are performing some work. They are doing less work for more money and at a large societal cost due to BOTH cost overruns and budget overruns, than even the worst civilian work provider. Privatize everything. In the mean time 1/2-2/3 of the budget is actually squandered, so I designate a significant portion of what Apple and Jobs pays in to the Federal and State governments for tax on income as "no work".

No I am not just whining either. I know how to fix it.

Rocketman

[D*I*S_Frontman]

Keep in mind that this is "virtual" money he has earned. If Steve cashed out all of his stocks, he might get that today--and then pay the most wicked capital gains tax bill you've ever seen.

Then again, if the market took a massive "digger", Steve could lose a couple hundred million overnight. I, for one, think that this is a fantastic way to compensate CEOs and CFOs. Pay 'em in company stock. If they make stupid decisions that negatively impact the company's standing, they eat some of the loss themselves. Rip some holes in the silk of those "golden parachutes."

But, then again, if a CEOs administration takes a company into incredible new markets and results in huge growth and stockholder earnings, then the CEO should see a proportional reward for his/her visionary leadership.

$1 million in stock options could mean $100 million a year in compensation, or $1 million--depending on what happens to the value of the company, which is precisely what a CEO is responsible for. Sounds like a great feedback loop to me.

I wish all major Fortune 500 companies operated this way. If boards had the guts to negotiate contracts like the one between Apple and Jobs, we'd hear no more complaining about "excessive CEO compensation" from shareholders or the public at large.

[Westside guy]

This list is whack.

I can see why Apple and Google are on there - but most of those companies are just there because they're big companies. I doubt most of the people surveyed really thought about their answers. The actual article talks about "sustained innovation" - what has Microsoft done that's truly innovative in the past, say, decade? Boeing has fallen to second-place behind Airbus largely because they don't know how to innovate. DaimlerChrysler's only "innovation" is how they're trying to sell off Chrysler to stem the financial hemorrhage. Ikea was innovative... 20 years ago. Dell's getting credit for exactly one idea - its business model was innovative when it started up; but it hasn't exactly kept the trend going, and is definitely more of a follower than a leader nowadays.

[Cult Follower]

I guess this was no real suprise but congrats to apple anyway. No other company even comes close.

[twoodcc]

I wish my official salary was $1 a year but still racked in $646 million a year;)


yeah, me too!

but this goods news....and hopefully Apple will continue to be at the top of this list

[Rot'nApple]

Isn't there a minimum wage in the US? How does Steve get around this?

To answer your question, Steve is salaried not an hourly employer. His contract as CEO so designates his salary along with stock options and grants and other perks (like the private jet to zoom about to Special Apple Store Grand Openings, I guess, although not very environmentally friendly of Steve, considering he brought on Al "inconvenient truth" Gore to be on the Board of Directors at Apple! Don't even get me started with Al and his BS...

But that is my take on the answer to your question...

Now if Steve didn't have all those other perks and stock grants to embellish his $1/year pay and he was designated as hourly then he might fall under the minimum wage law requirements... But I feel the minimum wage is the government's feeble attempt to tell employers what to do! Before anybody get's their feathers in a huff, answer me this...

Everytime politics talk about raising the minimum wage because as it stands now it is a non livable wage and is why it should be increased, ever notice that the amount suggested, even by those pro for an increase, do not offer a livable wage increase! 5.15 to 7.25 over the next two years, full effect in 2009... Who amongst us can live off 7.25 or $13,920 a year? (7.25/hr x 8 hrs = 58.00 x 5 = 290.00 a week x 4 wks in a month = 1160.00 x 12 months in a year = 13,920 without any taxes taken out)

Definitely wouldn't be able to buy NEW Apple products, maybe refurbs?!:D

And why 7.25? Why not 10.00/hr? Why not 20.00/hr? Well you can't have 10.00 or 20.00 an hour they say! If the purpose is to create the lowest mandate an employer can pay an employee and have it be a livable wage, WHY NOT?! It's all rubbish disguised as an attempt to help the little people. HA!

[MikeTheC]

Well, Steve Jobs may be "leading the way" in terms of the dollar figure of CEO compensation, but at least unlike Bob Nardelli he actually did something to justify it.

[drumforfun19]

Simple fact is, Steve deserves every red cent of the money that he makes. Ford's CEO makes 28 million a quarter, how well is ford off financially? Steve took a company that was on the brink of oblivion, and through determination and brilliant leadership, made it one of the finest tech companies in the world. I wouldn't care if that were being paid in cash.

I'm pretty sure this guy is steve jobs and he joined the mac forum to talk himself up. next you know he's going to say "I think steve should get a raise."

but seriously, that would be funny if all steve jobs did all day was read through the mac forums like "do they like me? They think I get paid too much!?!?"

[Counter]

I think Steve should get paid a lot more. My contributions to Apple's bottom line don't seem insignificant enough yet.

[Dustman]

yay apple! boo microsoft!