I don't think the government needs to limit CEO pay (assuming that's what you're referring to), and I think that an individual should try get the best deal he or she can, but from a business standpoint it just doesn't make sense to give someone $400 million over ten years just for coming to work each day. I don't think you can make the argument that Tim Cook (or almost any other CEO) is such a unique talent as to merit 400x more than an engineer. And that's not a class warfare statement - it's made solely from the perspective of making good use of company resources. I'm not an Apple shareholder, but if I was then given the opportunity I would vote against this deal.
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Apple Awards Tim Cook 1,000,000 Shares of Stock as CEO Bonus
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I don't think the government needs to limit CEO pay (assuming that's what you're referring to), and I think that an individual should try get the best deal he or she can, but from a business standpoint it just doesn't make sense to give someone $400 million over ten years just for coming to work each day. I don't think you can make the argument that Tim Cook (or almost any other CEO) is such a unique talent as to merit 400x more than an engineer. And that's not a class warfare statement - it's made solely from the perspective of making good use of company resources. I'm not an Apple shareholder, but if I was then given the opportunity I would vote against this deal.
Exactly.. but theres the trick. If he doesnt do a good job and apple stock goes down, so does what he gets. Its an incentive to work as hard as he can to up the price of apple stock.
/they really should split the stock sometime soon.
That's exactly what it is. He just became CEO and was given an enormous amount of shares. I understand it's not guaranteed, he has to stay with the company, and blah blah blah.
And if things continue to go right, he will get more shares. And more shares. And more shares.No, it's contingent. It is a motivation on a personal level to keep Apple stock high or higher. It is contingent on continued employment. Further, based on today's cost it works out to about $38.3 million per year for the 10 years covered. His salary was already $59m as acting CEO and that will likely not change. Kinda small for the largest cap company in the US and the fastest growing large cap on the stock market.
If he resigns or is fired before those dates arrive he does not get it. If the stock price drops for whatever reason, even a second recession caused by political intrusion in the economy and money, he makes less than expected.
To come out ahead everything has to go right, which is precisely why they gave that to him under those terms.
For those who want "1%", I take it to mean free as in gift, beer, with no labor or risk.Ummmm, no thanks.
Rocketman
On top of his salary.
Note the payouts - 500,000 in 5 years, another 500,000 in 10 years. Apple knows that Cook is a very talented CEO and, while he certainly does not have Steve's genius, he knows how Steve thinks and is one of the few that will honor his ethos and demand "We do it how Steve would have done it."
Also, for Apple, $380M over 10 years is a drop in the bucket. Lest we be reminded that last quarter their PROFIT was $7.31B. That's a profit of $81M a day, meaning that by the time we hit next Tuesday, Apple will have made enough profit to literally stroke a check to Cook for $380M.
Watching him on stage in the past, he comes across like cardboard.
Once Jobs is dead, Apple will follow.
Once Jobs is dead, Apple will follow.
Outstanding
I think this incentive just shows the faith Apple has in Mr.Cook and his abilities. I agree in this move wholeheartedly. He's clearly proven himself worthy, it's high time he receives recognition. Lord knows plenty of people in the industry are making disproportionate incomes, I believe he deserves/has earned it.
I think this incentive just shows the faith Apple has in Mr.Cook and his abilities. I agree in this move wholeheartedly. He's clearly proven himself worthy, it's high time he receives recognition. Lord knows plenty of people in the industry are making disproportionate incomes, I believe he deserves/has earned it.
When you are compensated in stock it is directly tied to performance. If the market likes what you are doing the value of your compensation goes up. If it does not you don't get paid as much. Cook is worth $383 million more on paper today than he was yesterday though his actual compensation may be significantly greater by the time he is able to cash out if the price of a share of Apple appreciates over the next decade or it might be way less if he makes poor decisions and Apple's stock price declines. Restricting the stock to not be sold for 10 years and also as conditional to employment keeps him from being lured away by a competitor or deciding he has had enough and retiring before a new generation of leadership is in place.
If what you should make is based off of your knowledge and education how is it that all those athletes make so much money? I hate to say it but you kinda sound like someone who has never really done a real hard day of work. Work is work and is completely equatable weather it's done with the mind or the hands. A police officer probably just as hard as Tim will this year and keep safe, hell a few will even die keeping people safe but they're not doing as much as him right? Because they're not really using their heads. Linemen are the same working hard to keep your lights on and some while die while on the job this year, keeping your lights on. But they're not really working either since they're not using their heads. If these people that weren't using their heads picking up trash finally realized that they weren't really working because they're "dumb", I'm sure you would be complain about the stench.
The net present value on $380m in RSU's discounting using the rate of return of the DJIA is about $227 million or $22.7m per year (a bit less because each years discount is different than the next by way of reverse compounding). But more or less this is about a quarter of apples daily profit... Which Cook has had a direct hand in for several years.
The premium is insurance not only against departure to a competitor but it's also to incent him to act on long term objectives rather than short term greed. This is good for Apple, its employees, shareholders and customers.
And it's conditional on both his stay and the long term health of the business. If he fails, he doesn't collect nearly as much. It's as smart a move for Apple as securing $5 billion in warrants for BOA with a guaranteed, fixed dividend was good for Berkshire Hathaway.
What other company would have the means to offer Cook such a deal to stick around? Because of the effect of long term planning and execution on product and brand strategy, cook staying around for ten years is worth exponentially more than the sum of ten CEOs for a year each.
The premium is insurance not only against departure to a competitor but it's also to incent him to act on long term objectives rather than short term greed. This is good for Apple, its employees, shareholders and customers.
And it's conditional on both his stay and the long term health of the business. If he fails, he doesn't collect nearly as much. It's as smart a move for Apple as securing $5 billion in warrants for BOA with a guaranteed, fixed dividend was good for Berkshire Hathaway.
What other company would have the means to offer Cook such a deal to stick around? Because of the effect of long term planning and execution on product and brand strategy, cook staying around for ten years is worth exponentially more than the sum of ten CEOs for a year each.
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My open hand is ready for some of that!
And $58 Million in 2010?
I could pay for my daughter's upcoming wedding with a small fraction of that amount.
My open hand is ready.
And $58 Million in 2010?
I could pay for my daughter's upcoming wedding with a small fraction of that amount.
My open hand is ready.
And Steve was nicely compensated in other areas to make up for his lack of salary that it didn't make much difference to how much he was worth.
I think Cook being given 300 million dollars of shares should be compensation enough really.
Well if you bought 1000 shares in 85... you'd now have...ready for this
$383,000
$2 a share in 85
The interesting bit is you could have got a great deal still in 2005 - $8!
You resemble your photo in that you have not proofed what you have written.
Why don't you try again - or we shall dismiss your comments as drivel.
