That is a rediculous amout of money that comes right out of the pockets of the shareholders.
Please explain how that took money out of my pocket. Looking at today's board, I made quite a bit on my Apple stock the past few days.
That is a rediculous amout of money that comes right out of the pockets of the shareholders.
It's CEO's like this in this country getting way overcompensated with millions and millions, that is crippling our ecomomy and country. There are so many more key people at Apple, that do a bang-up job daily, but will never be compensated a thousandth of what this guy is getting in one sha-bang.
I've always said, that whatever the CEO, COO, or CFO, or whomever is at the top of a corporation, if he gets a bonus of so many dollars, the lowest peon in the company should at least get a small % of what the CEO is awarded, as long as he/she is doing his/her job to the best of his/her ability as well. So if this top dog gets a $100 million bonus, the lowest peon on the totem pole at Apple should at least get a $500 bonus as well. Hell, maybe a $1000 bonus!
Overpaid CEO's and overpaid board of directors in this country are killing all of us!!
![]()
You all act like Steve interviewed every single American for the job and picked Cook. Steve just happened upon Cook like he could have countless other people. If Cook took a sick day on the day he was supposed to meet Steve, and Steve picked someone else to be his right hand man years ago, I bet Apple would still be as great as it is today.
That is true. It is also true that we had teachers 40 years ago and CEOs of companies that made millions in profits as well. 40 years ago the CEO's compensation wasn't nearly as many multiples of the teachers compensation as it is now. Things have changed, lots of people don't think that this is for the better.
I'm well aware of the corporate governance at issue here. First, shareholders don't "implicitly approve" the board decisions. Rather, generally speaking, shareholders delegate their power to control the day to day operations, except for those matters expressly reserved under the governance documents (i.e. articles of incorporation/bylaws/etc).
Clearly the management team has executed over the previous years, but this stock grant isn't supposed to reflect prior performance. It is for his service as CEO--and as a CEO, he hasn't done anything yet. Sure, he MAY end up earning this grant (as I believe he earned those grants that vest soon), but he is unproven at the helm as CEO. He should have reveived OPTIONS with a strike price at the current stock price. His compensation should be tied to performance of the stock, especially if no dividends are made.
There is a major problem in the corporate world. Board members are elected by the institutional shareholders (not the small unit owners) who all "swim in the same pool". It's an old boys/girls club and they all appoint each other to various boards, set enormous, ever-rising compensation levels and they win regardless of whether the company succeeds. Meanwhile the incomes of those they set for those working for them are all under downward pressure, benefits are reduced, jobs outsourced, etc. In 1978, the average CEO to average employee pay was 35 to 1. Now? 475 to 1. Sorry, I'm all for rewarding success and am pro-capitalist, but greed has taken over.
Tim Cook can talk the talk, but he is also walking the walk.
This is fine ... Cook and others deserve compensation for doing a great job.
But Tim ... how about tapping some of that $80 billion in cash hord you have and give some back to shareholders who have supported the effort?
Disclaimer: I own some (a little) Apple stock.
Keep in mind this isn't cash they've paid him like a paycheck. This is being incented by giving him greater ownership in the company. He only does good if the stock does good (thus making the owners money)
The company has done SO good that it is a ridiculous amount of money. If the stock had gone back to it's $78/share levels around one of SJ's medical leaves, it would be worth a lot less money (and incidentally less than it's cash and cash equivalents)
Keep in mind this 'bonus' is dependent on the stock being high.
Albert Pujols contract was approved today. Lot's of complaining about that as well - but Pujols will have earned a similar amount as Tim Cook for their preceding 10 and next 10 years of work.
I'm not sure why people are oblivious about watching a movie or a sporting event when stars there can be earning more every year than a guy running a company that adds so much value to this country.
I watch movies and sports too, but I'm not delusional.
There use to be a time when there was not such a disconnect between the average employee salary of a company and their execs. These salaries are obscene on their face. Yes Apple is doing great and he probably has been a positive part of that. Yet the rank and file at Apple are not also sharing in the largess. The worse part of all of this though is that this income which will come in the form of a capital gain will only be taxed at 15% total no FICA, far less than what many hard working middle class pay as a percentage in taxes.
I'm also not sure what the strike prices on the options will be - but Apple wasn't in the dumps in the mid 2000s, so he's making less than 100M. Considering the strike price of the 1M future options would be near 400, unless Apple goes gangbusters, he's going to make far less than 400M on those.
I watch movies and sports too, but I'm not delusional.
My guess is Cook will make something in the 300M ballpark (no pun intended) for his last 2 decades at Apple when the 1M options fully vest.
You show the Apple board of directors that you're Apple CEO material by A.) being CEO of another company (e.g., the other 499 CEOs of Fortune 500 companies), or B.) working your way up the ranks to end up being one of the top five executives in the company.
Why don't you go occupy their reserved parking spaces.
These weren't options with strike prices, this is a grant of 200,000 newly issued shares of apple that he got back in 2008. If you want to think of them as options, then think of them with a price of zero. This summer he was given one million shares. He will no doubt be given a grant of additional shares before those have all vested in 2021. He was also given many shares of stock prior to the grant of a million this summer. So your estimate of $300 million in compensation is way too low for many reasons.