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Eddy Cue Receives Another 100,000 Shares of Apple Stock
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Well 60 million is only .00075% of the 80 billion they have in cash. Seems like a decent analogy as far as ratio's go.
It's not a reward, it's for retention.
- How much could these guys earn elsewhere? They're all talented enough to run startups, IPO, and make this sort of money elsewhere.
- How screwed would Apple be if they left?
Actually wouldn't it buy stability for at least 5 years since only 25% of the stock is vested in two years? I would think these execs would want to vest much more than 25% of their stock bonus.
Five years of stability is not bad. Question is what happens after that? Hopefully Apple is grooming future leaders in case these execs leave after five years.
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Eventually these guys are gonna leave. That's a fact. Apple has to make sure that they're always hiring quality talent and grooming future leaders to take the SVP positions so it stays innovative, creative and relevant.
I don't think Apple would collapse overnight. Surely in a world of 7 billion people there has got to be a few other smart people out there....
There are other people, but these are the people who have been soaking up Steve's wisdom for the last few years.
- How long do you think it takes to get up to speed in a job like that?
- How much do you think Apple's stock price would drop if it lost a couple of divisional heads?
It's not a lot of money to spend from a corporate-governence point of view.
And these "other smart people" only deserve what 50k/year? 100k? 1 Mil? 5 Mil? 30 Mil? Where is the line?
I'd consider paying a little more attention in math class next time. Try 0.075%. That's 100x more.
But anyway, that's beside the point. We're talking about stock options here - not taking a % of their cash reserves.
I never claimed to be a mathematician but 60,000,000 / 80,000,000,000 = 0.00075. Right, I am fairly confident there?
I'm pretty sure we are discussing $$$. So yeah, what else ya got? I never claimed to be a mathematician but 60,000,000 / 80,000,000,000 = 0.00075. Right, I am fairly confident there?
Hmmm, well, how about the fact that 1/10 = 0.1.... does that mean that 1 = 0.1% of 10?
You have to multiply by 100 to get a %.
I never claimed to be a mathematician but 60,000,000 / 80,000,000,000 = 0.00075. Right, I am fairly confident there?
From wikipedia.....
In mathematics, a percentage is a way of expressing a number as a fraction of 100 (per centum meaning per hundred in Latin). It is often denoted using the percent sign, %, or the abbreviation pct[citation needed]. For example, 45% (read as forty-five percent) is equal to 45/100, or 0.45.
This is a great post.
I think it's more of a good sign though. Cook recognizes the talent he has around him and he is giving them incentive to stay. Like you said, this buys stability for Apple which can only be a good thing.
Interesting that Ive didn't receive anything.
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But still nothing compared to their cash/equivalent stockpile.
Ok, I guess you got me there, sorry.
It's late for me... I guess Apple splurged and spent an appalling .075 of their profit. Still, just a few "ears of corn".
Or you can be like "Sol Trujillo". He was Telstra CEO for a few years. And during that time and I quote wikipedia:
And when he left he was given a roughly 20 million I think golden handshake.
He did a terrible job and was given 20 million. The rest of us to a terrible job and we get fired with nothing. Proof the world is not fair.
So they gave him another 100,000 shares to keep him until 2016 however according to the article he already had stock option to keep him until 2015 so these new 100,000 shares only really keeps him for an extra year...hmmm why not wait until closer to 2015 to offer him more...
Shame that apple want more socially responsible and has just gone along the well worn path of corporate greed - top employees paying themselves huge pay packets. The world doesnt need greater disparity in pay - hence demonstrations around the world rejecting the continued concentration of wealth into fewer hands.
I am very disappointed
I am very disappointed
Welcome to The Great Corporatocracy called America. Here's capitalism in all its unfettered glory.
At least in this case, give it a pass because it's Apple. For now. At least they're actually a case study in how to run a business, which is arefreshing departure from most of the antics we see going on these days. Apple actually adds value to the market.
Let Eddy have his shares this time around. Hey, call it good timing.
Its the engineers that design the products, not these men. And its the chinese workers that make them.
I'm not a socialist by any means - but the farmer harvested the field, they are very close to the "product".
How can those executives have "earned it". Many of the good decisions could have been made by lots of other people, people not serendipitous enough to have landed a CxO job. To the contrary, poor decisions don't lead to the executive forfeiting his life, half the time they even get a golden parachute (c.f. Leo Apotheker) - at least the Japanese execs sometimes have the grace to commit suicide*, rather than revel in the undeserved gains.
The executive's job: Find the right middle managers
Middle manages: Hire the right engineers, choose the right EMS contractor
Engineers: design the right things
EMS contracts: hire the right workers that complain the least
Workers: screw together your iDevice
Of course it's more complicated than that, but an executive's job is just not really *that* taxing. Sure it's long days. So is engineering. Now an engineer can't do a COO job, nor vice versa, at least not without training, but to believe that one is worth 1000x (literally) more than the other?
Look at the scientists and engineers that came up with the inventions that we rely upon. Few are renumerated at anywhere near the level than even a clueless executive is.
But that's the way the culture is. Who needs more than a few million dollars per year? Once you've got a house, car, and a flatscreen? Greed.
I just quit my senior engineering job because I wanted to find out what else there is to do in the world. Now, a 100k a year was pretty comfortable. Maybe if I had kids I could well use 200-300k, but more than a million? 10 million? I'd only want the money to prevent me from looking like a schmuck when out with my CxO buddies.
*tragic though this is for everyone concerned, but nevertheless part of the moral hazard condition that would justify such high bonuses.
^^^^ good post.
The other issue with calling $40M a "few ears of corn" is that while it is easy to make it out to be a trivial amount by comparing it to the total cash reserves of the company, there are other ways of comparing that figure that show it to be anything but a trivial sum. For example, it is 800x more than the average American combined family annual income (according to Wolfram Alpha 2007 figures) - in other words, that "golden handcuffs" bonus would be enough to feed, house, clothe, educate, transport and provide all the other essentials (along with a few luxuries) for an average American family for a period of 800 years. This figure goes beyond mind boggling when we start to consider how many people it would help for the duration of their lives if they happened to be one of the 660 million people in this world who live on less than $2 a day, or one of the 5.6 Billion people in the world living on <$10 a day.
I understand that this is how the corporate world works, but when put into that perspective, it kinda feels like an insult to a massive % of the earth's population to refer to such an enormous sum in such a casual manner. $40 million should not be "a few ears of corn" in anybody's books imo - it should be rightly acknowledged as the very very significant sum that it is, regardless of what % of a company's value it represents.
The other issue with calling $40M a "few ears of corn" is that while it is easy to make it out to be a trivial amount by comparing it to the total cash reserves of the company, there are other ways of comparing that figure that show it to be anything but a trivial sum. For example, it is 800x more than the average American combined family annual income (according to Wolfram Alpha 2007 figures) - in other words, that "golden handcuffs" bonus would be enough to feed, house, clothe, educate, transport and provide all the other essentials (along with a few luxuries) for an average American family for a period of 800 years. This figure goes beyond mind boggling when we start to consider how many people it would help for the duration of their lives if they happened to be one of the 660 million people in this world who live on less than $2 a day, or one of the 5.6 Billion people in the world living on <$10 a day.
I understand that this is how the corporate world works, but when put into that perspective, it kinda feels like an insult to a massive % of the earth's population to refer to such an enormous sum in such a casual manner. $40 million should not be "a few ears of corn" in anybody's books imo - it should be rightly acknowledged as the very very significant sum that it is, regardless of what % of a company's value it represents.
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