Jobs draws $1 paycheck again

Discussion in 'Current Events' started by slowtreme, Mar 11, 2004.

  1. macrumors 6502

    May 27, 2003
    Tampa FL

    Apple Computer Chief Executive Steven Jobs took a $1 salary in 2003, as he has since 1998, and received $74.75 million in restricted stock in exchange for his outstanding stock options in March 2003.

    So that's Seventy Four Million seven hundred fifty thousand and ONE dollars, for a year of work? And Apple only has 5% of the Computer market?
  2. macrumors 601


    Feb 17, 2002
    So long, and thanks for all the fish!
    If Apple stock craps the heck out, does Steve not get more than his dollar?

    I guess that shows a level of faith in your company and it's products.
  3. Administrator


    Staff Member

    Feb 5, 2004
    New Zealand
  4. macrumors 6502


    Oct 23, 2001
    That$ what I call confidence!

    Wow.. It's good for company moral I think and it's pretty cool that Steve ties his earnings to the company's performance like that. It reminds me very strongly of our new governor in California... In fact, Schwartzenegger doesn't even draw $1 salary--he refused all of it because he feels himself wealthy enough and in fact has spend millions of his own money to campaign for the position, and millions since on lobbying for the budget-balancing laws the fat legistlators in Sacramento have been unwilling to pass... (because it hurts their fat little entitlements!)... how's that for a philanthropist?
  5. Moderator emeritus

    Mr. Anderson

    Nov 1, 2001
    So do they give the $1 all in one check or does he get payed part of it every 2 weeks? And how do they take taxes out on that?

  6. macrumors 6502

    Oct 24, 2001

    Please don't compare schwarzenegger to Steve Jobs. It makes me sick.
  7. macrumors 65816

    Savage Henry

    Feb 20, 2004
    in a one horse, two house, three pub town.
    Damn straight.

    And on a side note, if I was told I could do what I want and how I wanted it, I'd sacrifice all my income bar a dollar just to get it.

    Of course I'd need a few billion in the bank just to make it through til next rent day....:)
  8. macrumors P6


    Oct 20, 2002
    Everyone has so much admiration for Steve Jobs because he ties all of his income to the productivity of the company. It's hardly worth cutting a check for a $1.00, then he's lucky if he gets 50 cents. I would love to have his income form stocks.
  9. macrumors 6502a


    Nov 19, 2003
    Yeah that & he doesn't like same-sex marriages. I guess his moral highground is so high that law prevails over people loving each other...that and he wants to run for president...god help us.

    Good for Stevey!
  10. macrumors 68020


    Jul 16, 2002
    Salt Lake City, UT
    You're telling me that he's the worst governor ever because he doesn't believe in same sex marriage? You're right though, people who don't think like you should never be able to make decisions.

    As for Steve Jobs, I like his style. It's not about him, it's about the company (well sorta, I mean he is rich). Let's make it another good year for Apple and for Steve.

  11. macrumors 604


    Jul 4, 2001
    1 Block away from NYC.

    Sure he takes $1 a year...

    But with Stock options he isn't going broke ANY time soon.

    Stock options... that lear jet.
  12. macrumors regular

    Feb 18, 2003
    Ontario-> Louisiana-> Colorado-> Ontario
    I think it's a Gulfstream 5. Quite a bit more expensive than most Lear models. Sorry for being picky.
  13. macrumors 6502a

    Jan 25, 2004
    oh man having morals against an abomination unto the lord really makes him unfit to be a governer
  14. thread starter macrumors 6502

    May 27, 2003
    Tampa FL
    Correct me if I'm wrong. I'm no fancy executive type, but, isn't Stock Options the option to purchased heavily discounted stock?

    So even when provided the chance to buy $74 mill is stocks, it's pretty hard to do with $1.00, unless his options are that he can buy that 74 mill with just one dollar, and sell back at full once vested.
  15. macrumors 68030


    Jan 31, 2003
    Chi Town
    ok, we're really not going to get into this here. A different thread, a different time guys.

    But before we drop Arnie as a topic from this thread about Steve Jobs, let me just say to those who are afraid that he's going to run for President:

    You, see, there's a little thing called the Constitution that prevents that. He was not born in the US.

    As for Steve, glad to see he's holding himself accountable by way of his paycheck.
  16. macrumors 6502

    Mar 1, 2004
    Call options give you the right to purchase stock at a specified "strike price". For example, if the "strike price" is $10, and Apple stock was $25 you would exercise the option for a $15 profit. If Apple stock was under $10 then you wouldn't exercise.

    Options are designed to be a performance incentive for executives so they get rewarded if the companies stock price achieves a target. In my experience, most companies actually set the hurdle too low.
  17. macrumors 68040


    Sep 13, 2003
    Its not so much where you are as when you are.
    Ideally they are set at either at the current value or current value + margin. Before the dot com bubble they typically were set like that. Then again before the bubble a PE ratio of 25 was considered bad.
  18. thread starter macrumors 6502

    May 27, 2003
    Tampa FL
    So I'm not sure I understand.

    Did Jobs get handed $74 mil in stock, or handed a reduced price stock that he can sell later when/if it hits $74 mil, or the option to purchase stock to sell when/if it hits $74 mil?
  19. macrumors newbie

    Mar 15, 2004
    If you are judging Steve Jobs only on Base Salary and Stock Options, then he absorbs more annual income than Bill Gates. Bill Gates' annual salary per their company annual report is $865K for this year. The difference is, Bill doesn't have any stock options per SEC documentation.

    Please note that the comparison here is excluding any ownership of company stock which obviously contributes greatly to their income.

    So, in conclusion, if you calculate the % of compensation to the respective company's net income, this is what you get:

    Steve Jobs receives the equivalent of 108% of Apple's net income in Salary and Options


    Bill Gates only receives the equivalent of about 0.05% of Microsoft's net income in Salary and Options

    edit: After looking at Michael Dell's figures, here's what I came up with:

    Michael Dell receives the eqivalent of 13% of his company's net income in Salary and Options (assuming he exercises 100% of his exercisable options)
  20. macrumors 6502

    Mar 1, 2004
    Setting them at the current price isn't exactly much of a performance hurdle! Thats what I mean about companies setting them too low. Ideally they should be set at some sort of premium. Execs would then be rewarded for getting the share price up. The whole point of options is to align senior managers and shareholders interests (shareholders want the stock price to rise).
  21. macrumors 68000


    Jun 4, 2002
    Ottawa, ON
    He can sell the options for a profit similar to what he could've made by buying the options at the strike price and selling at the market price. Of course, this stock is newly issued and it dilutes the value of all the other apple shareholders. Thanks Mr. Jobs!

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