I agree. Everyone talks how Apple can afford this, but that misses the point. It use to be a CEO would make 30-50 times the average salary of their employees. Apple an American company makes huge profits partly because they use semi-slave labor in a foreign country instead of building the products here. Despite having by far the most successful retail stores they pay their rank and file as little as possible. Apple is lobbying congress for a "tax holiday" to bring in all of their excess profits virtually tax free. This country enabled Apple and the rest of them to be what they are and greed has taken over.
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Apple Awards Tim Cook 1,000,000 Shares of Stock as CEO Bonus
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I agree. Everyone talks how Apple can afford this, but that misses the point. It use to be a CEO would make 30-50 times the average salary of their employees. Apple an American company makes huge profits partly because they use semi-slave labor in a foreign country instead of building the products here. Despite having by far the most successful retail stores they pay their rank and file as little as possible. Apple is lobbying congress for a "tax holiday" to bring in all of their excess profits virtually tax free. This country enabled Apple and the rest of them to be what they are and greed has taken over.
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Good thing it's not up to you. We can go back and forth on what is "deserved", but I'm on the side of economic freedom. You don't like it? Stop buying Apple's products. Since you won't do that, deal with the fact that Cook, over the course of the next ten years, is being paid a lot of money leading the world's most profitable technology company. Oh yeah, and now no one will be able to poach him.
By the way, ask some Apple shareholders if he's worth the minor dilution of each of their shares.
SirHaakon said:
Good thing it's not up to you. We can go back and forth on what is "deserved", but I'm on the side of economic freedom. You don't like it? Stop buying Apple's products. Since you won't do that, deal with the fact that Cook, over the course of the next ten years, is being paid a lot of money leading the world's most profitable technology company. Oh yeah, and now no one will be able to poach him.
By the way, ask some Apple shareholders if he's worth the minor dilution of each of their shares.
It's the Delta that counts
What people need to remember is that stock options are granted at a strike price. That is typically the price of the stock on the day the board granted the stock options, or higher, if you wish to be on the safe side with the Feds. So Tim Cook will be awarded 500,000 stocks in 2016. Assuming a strike price of $383/share and a stock price of $683/share he would have a profit of $300/share x 500,000 shares = $150,000,000 ./. 5 years = $30,000,000 per year, but not actually paid until year 5. Then the Feds and the perpetually almost bankrupt State of CA want to extract their pound of flesh. Who knows what the taxes will be five years from now, but higher sounds like a good guess. Take inflation into account and it is much less yet.
Now, Apple is a top performing company. The average stock option granted by a public ally traded company, and you ALWAYS only see the gross numbers, nets the recipient after taxes by the time they actually cash it in only 4% (FOUR PERCENT) of the gross numbers that are being bandied about. Many people get nothing due to the decline of a stock, some folks who work for top performing companies get paid a lot.
I am an Apple shareholder and have been for a while. I gladly see Tim Cook get this 1,000,000 in stock options granted. If you ever had the opportunity to see the impact, both positive and negative, that a CEO can have on a company, then that is dirt cheap for top talent.
Very happy with
What people need to remember is that stock options are granted at a strike price. That is typically the price of the stock on the day the board granted the stock options, or higher, if you wish to be on the safe side with the Feds. So Tim Cook will be awarded 500,000 stocks in 2016. Assuming a strike price of $383/share and a stock price of $683/share he would have a profit of $300/share x 500,000 shares = $150,000,000 ./. 5 years = $30,000,000 per year, but not actually paid until year 5. Then the Feds and the perpetually almost bankrupt State of CA want to extract their pound of flesh. Who knows what the taxes will be five years from now, but higher sounds like a good guess. Take inflation into account and it is much less yet.
Now, Apple is a top performing company. The average stock option granted by a public ally traded company, and you ALWAYS only see the gross numbers, nets the recipient after taxes by the time they actually cash it in only 4% (FOUR PERCENT) of the gross numbers that are being bandied about. Many people get nothing due to the decline of a stock, some folks who work for top performing companies get paid a lot.
I am an Apple shareholder and have been for a while. I gladly see Tim Cook get this 1,000,000 in stock options granted. If you ever had the opportunity to see the impact, both positive and negative, that a CEO can have on a company, then that is dirt cheap for top talent.
Very happy with
Sure. And the work of the thousands of other employees is worthless in comparison?
Basically, you're saying that the Pharaoh deserved the pyramid because he was Pharaoh...
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If we could only all be so lucky to receive a bonus like that.
If everybody would get a bonus like that, then a liter of milk would cost about ten thousand dollars. This is how your beloved capitalism works.
WOW that is (potentially) a looooooooot of money!
But who is to say that he won't do a Bill Gates and give it all away to charity in 10 years time. If he's making 60m a year, even allowing for the taxes he'll have to pay, he certainly won't "need" any more money.
BTW do his close friends get to call him TC (providing its with dignity!)
Go Top Cat...
But who is to say that he won't do a Bill Gates and give it all away to charity in 10 years time. If he's making 60m a year, even allowing for the taxes he'll have to pay, he certainly won't "need" any more money.
BTW do his close friends get to call him TC (providing its with dignity!)
Go Top Cat...
I could do a better job for half that.
If you have ever seen how little these guys do you would understand
If you have ever seen how little these guys do you would understand
Sure you could do a better job... The bonus is in the form of stock options not cash. He can't go out and spend the effective $383mil his stock is worth...
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Beloved capitalism?
You're saying you don't enjoy the same privileges everyone else here does? If you don't like capitalism then please, by all means, stop buying things and go live in some bunker and plot your revolution elsewhere.
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Beloved capitalism?
You're saying you don't enjoy the same privileges everyone else here does? If you don't like capitalism then please, by all means, stop buying things and go live in some bunker and plot your revolution elsewhere.
What happens these days is exactly the result of capitalism. Off course, people with more responsibilities, who had to study more etc. should earn more. But don't you think a salary range of $40.000 - $2 million each year is way way better than $200 - $400 million?
Remember, $2 million is a lot of money. Personally I cannot imagine anyone being much happier with $400 million than $2 m.
I think the American economy should be based on solidarity. It means loving people and caring for each other. Some people aren't born with many talents. Or they are born with disabilities, resulting in not being able to work their entire life. These people are born that way and can't help it.
American capitalism brought greediness to a whole new level. Companies offered people to loan all the way to sell their products. Many many american households have multiple creditcards. Many of these people probably will never get out of debts. Sure this is mostly been the decision of these consumers themselves, but advertising and capitalism like promises have drove them mad.
I apologize for my somewhat sloppy english..
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Why aren't you going into all the other points he made?
If you disagree with him, explain and if you agree, just post that (It's not bad to be wrong or right).
It's a substantial bonus, but surely the thing that matters most is where Apple will be after 10 years of Cook's tenure as CEO. If he takes Apple further forward, which considering Apple's remarkable success in recent years is no sure thing, I think few will complain.
For the next few years, & with Steve Jobs hopefully staying well enough to remain chairman for at least that duration, Apple will no doubt continue to reap the benefits of Steve's vision with presumably a number of products in the pipeline that are already at an advanced stage of development.
IMHO, for the next 2 to 3 years or so, Tim Cook can't do much wrong. His true test will come in the years after. Only later will his relative success, or otherwise, become apparent. FWIW, I'd back him to succeed, but that's not to say that I don't have at least a few doubts.
For the next few years, & with Steve Jobs hopefully staying well enough to remain chairman for at least that duration, Apple will no doubt continue to reap the benefits of Steve's vision with presumably a number of products in the pipeline that are already at an advanced stage of development.
IMHO, for the next 2 to 3 years or so, Tim Cook can't do much wrong. His true test will come in the years after. Only later will his relative success, or otherwise, become apparent. FWIW, I'd back him to succeed, but that's not to say that I don't have at least a few doubts.
What people need to remember is that stock options are granted at a strike price. That is typically the price of the stock on the day the board granted the stock options, or higher, if you wish to be on the safe side with the Feds. So Tim Cook will be awarded 500,000 stocks in 2016. Assuming a strike price of $383/share and a stock price of $683/share he would have a profit of $300/share x 500,000 shares = $150,000,000 ./. 5 years = $30,000,000 per year, but not actually paid until year 5. Then the Feds and the perpetually almost bankrupt State of CA want to extract their pound of flesh. Who knows what the taxes will be five years from now, but higher sounds like a good guess. Take inflation into account and it is much less yet.
Now, Apple is a top performing company. The average stock option granted by a public ally traded company, and you ALWAYS only see the gross numbers, nets the recipient after taxes by the time they actually cash it in only 4% (FOUR PERCENT) of the gross numbers that are being bandied about. Many people get nothing due to the decline of a stock, some folks who work for top performing companies get paid a lot.
I am an Apple shareholder and have been for a while. I gladly see Tim Cook get this 1,000,000 in stock options granted. If you ever had the opportunity to see the impact, both positive and negative, that a CEO can have on a company, then that is dirt cheap for top talent.
Very happy with
Re-read the article. He's not getting options or SARS. he is getting restricted shares. So even if he destroys value rather than creating it, he gets a ***** ton of money. Nothing wrong with restricted shares, but the amount is flat out silly. This is to buy the rest of his career.
The rub for me here is that Tim is talented, but its not yet known if he's the utterly irreplaceable talent that might justify buying out someone's career. That would have been the Steve-O. Its well documented that Tim brings to the table supply chain expertise, great management controls, etc. That's important; that adds value; but that isn't god-given raw talent and vision that might justify letting the board go nuts and do this.
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True. He's done great. But that's what his prior compensation plans were for. This isn't back pay..
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According to theregister these shares will be worth 15 billion dollars in 2021. Nice big number probably calculated to make everyone jealous. They missed to mention that according to their calculation the share price would go up to $15,000 per share
The way I see it is that Apple can do whatever they want, it's their money or the shareholders' or whatever. Mr Cook has done a great deal for the company and they'd like to keep it that way. Might be over the top a bit, but what do I know?
But one can also disagree with that. It's freedom of opinion, the thing that doesn't seem to exists on forums (any forum).
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Yes it's a lot of money, but my goodness he has a lot of responsibility.
Yes it's a lot of money, but my goodness he has a lot of responsibility.
There's probably a good reason they aren't CEOs. Not every engineer and designer is cut out to LEAD.
And what does a CEO do? The CEO must increase shareholder value. That's a big deal. The CEO brings it all together into one tight package that makes money. It's the most important role in the company. That is why they are the "Chief" Executive Officer. They are the first. It all works according to their expertise and vision.
Makes perfect sense. Especially in the context of the period, and given the Pharaoh's role, position, and what he represented.
Whether or not I buy Apple products doesn't change the fact that they've outsourced all of the labor to build those products to some 4th world slavehouse where people jump off the buildings to escape the crap conditions. What's that you say? It's cheaper to make the products there so your beloved shares will retain their price? Well how about this... you take some of that ridiculous $383 million and spread it among the people who really work their asses off to make Apple successful and keep the labor here in our country. Better conditions for the workers and better revenue for our economy. Heaven forbid Tim Cook has to give up his 9th yacht to do that.
Yes, as the CEO he should be paid more. But "more" and "a ludicrous amount" aren't the same thing.
Another greedy CEO? Very disappointed. $58,000,000/year + $400,000,000/10 year is too much. With the money Apple can build a factory in the US.
With the money Apple can build a factory in the US.
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people who need big money to do a good job usually dont do such a good job to begin with. that said, im not making this post to shoot down Cook (not at all). just stating the somewhat obvious.
personally, however, i find it a bit sick that the ones making the devices get jack **** and the ones up top share the billions. then again, im not american.
personally, however, i find it a bit sick that the ones making the devices get jack **** and the ones up top share the billions. then again, im not american.
Does he have more responsibility than the president? Cook is making a 100 times more than the president.
Kan-O-Z
In 1997 Apple eliminated all corporate philanthropy programs, and despite their current wealth haven't reinstated them.
But they are more than willing to pay their new CEO all this money.
But they are more than willing to pay their new CEO all this money.
That is irrelevant. The President is a public servant. Tim Cook helps a corporation make profit. If perceived worth mattered, good teachers would make millions and crappy CEOs would make $30K a year. This is capitalism, so it is a moot point.
If an engineer invents a new idea or concept at Apple, he/she will get a pat on the back...maybe a 10-20% salary increase...which means about $20k. If the idea is a breakthrough, Apple will get billions. CEO will go home with billions as well.
Just because the CEO is the leader of the company does not mean that he deserves 100000000X more than the engineer who invented the idea.
This closely resembles a dictatorship type government...where all the people under the dictator get jack ***** and the dictator gets it all. Where if you lived in a country and discovered gold, the government would give you a pat on the back and then go ahead and take it from you.
And I'll tell you what else. There are a lot more people that could fulfill the role of the CEO than what you may believe. Unfortunately there is a lot of luck that has to come your way to work your way up to that role. And once you're there, you've become a King/Pharoah/Dictator. It's not a super difficult role, more of a lucky one. Sure not everyone is cut out for it but that can be said of any job position...not just CEO.
CEOs are propped up on a pedestal as if they are the company and they single handedly did it all. Many CEOs don't really do that much. Jobs is an exception of course.
Kan-O-Z
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Which would be a great system if it could ever exist. Some of the most important and influential jobs that help our entire country and help shape our future are given such little compensation. If such a system could ever exist, our nation would be doing great. There would be no greedy fat cats on wall street that would have robbed America and crumbled those exact people that are the foundations of this country.
Given enough time without any control, capitalism will fail. It's just a matter of time. We are starting to see the beginnings of it.
Kan-O-Z
Does he deserve it?
"He" doesn't deserve it, perhaps. But the "position" certainly deserves it. He has unique experience, networking, skill, and knowledge he (and the company) developed working for 13 years in the top management of what is now the largest tech company in the US.
Just like the President, the "person" does not deserve thousands of security employees, a few jets and helicopters, a private train or three, and control of the strongest military on the planet. The "Office" of the President does.
That's the proper way to view this.
I bet if you asked him directly he would say he has enough money. He doesn't "need" more. He works in an environment of incentives where stockholder value is the prime directive.
Given his team's results so far, maybe he is underpaid?
Rocketman
"He" doesn't deserve it, perhaps. But the "position" certainly deserves it. He has unique experience, networking, skill, and knowledge he (and the company) developed working for 13 years in the top management of what is now the largest tech company in the US.
Just like the President, the "person" does not deserve thousands of security employees, a few jets and helicopters, a private train or three, and control of the strongest military on the planet. The "Office" of the President does.
That's the proper way to view this.
I bet if you asked him directly he would say he has enough money. He doesn't "need" more. He works in an environment of incentives where stockholder value is the prime directive.
Given his team's results so far, maybe he is underpaid?
Rocketman
most of Apple's success is due to SJ and a group of talented persons designing and creating amazing ideas and products
but a part of the success is also linked to the employees working their ass off sometimes 7 days a week to make customers happy
i wish that a small part of the benefits would be shared with them, instead of giving away almost 400 million bucks to just one guy...
but a part of the success is also linked to the employees working their ass off sometimes 7 days a week to make customers happy
i wish that a small part of the benefits would be shared with them, instead of giving away almost 400 million bucks to just one guy...