Tim Cook Poised to Receive Around $120 Million in Apple Stock as Tenure and Performance Award

[Scottsoapbox]

Proof that CEO compensation is focused on short-term rather than long-term profitability.

 

[thettareddast]

So there's no room to critique that his actions to date (and vision) result in his receiving accolades here in this thread and elsewhere primarily for having the vision to "make money off products people still want to buy" instead of "make great products people want to buy?"

A leader who makes great products so the money follows is always better than a leader who follows the money.

noone is being censored from expressing any opinion they want. as far as the board, fund managers, analysts, institutional investors, and other shareholders are concerned....hes doing his truest duty -- guiding the company towards profitability -- almost perfectly.

its just business. not emotion.
[doublepost=1534959954][/doublepost]

Proof that CEO compensation is focused on short-term rather than long-term profitability.

3 year evaluation not enough - you want a 10 year window?

 

[mrzz]

the best would be if he grabs the $ and leaves forever

 

[tridley68]

And its all about $$$ not producing a good product i phone 6 battery issues mac book keyboard issues coatings on mac book screens pealing for the money we pay as consumers we should get a decent product. just saying.

 

[thettareddast]

In a private company I couldn’t care less what th bosses make but in a publicly traded one? This is disgusting, where’s the shareholder outrage?

There’s simply no fair justification for that amount of money. Especially since so much of it was just coasting on the success made by someone else.

ask them. the shareholders dont seem to have a problem with it.

if you dont like it, vote with your wallet: dont buy their products; dont invest in the company

 

[calstanford]

Let's hope he will decide to not be greedy, say, hey that's enough money for life. Let's retire.

 

[I7guy]

And its all about $$$ not producing a good product i phone 6 battery issues mac book keyboard issues coatings on mac book screens pealing for the money we pay as consumers we should get a decent product. just saying.

By your benchmark Apple doesn’t produce a good product, by my benchmark they do. Remember when profits are first the company the puts profits first will sink like the titanic.

 

[9081094]

So in other words, Apple, a hardware company, is incentivised to keep pumping out quality products which consumers are willing to shell out a premium for?

Sounds good to me.

Apple is totally relying on it’s brandname and targeting the technological ignorant groups. Sure they make good phones etc. but when you know what’s on the market and for what price, you know you payed Apple tax to make them reach a trillion dollar company.

Apple stood out for delivering the best. Those days are gone. I would rather see they would heavily invest those billions in delivering the best products again it would justify the Apple tax today.

 

[8281]

Well deserved. Tim and Apple aren't perfect, but they are clearly dominating the tech industry. There isn't another company out there that can touch them.

Google and Amazon, in terms of valuation, are right behind Apple.

 

[yaxomoxay]

Proof that CEO compensation is focused on short-term rather than long-term profitability.

We’re talking about 7 years of constant humongous growth. 7 years in technology years is amazing.

 

[I7guy]

Apple is totally relying on it’s brandname and targeting the technological ignorant groups. Sure they make good phones etc. but when you know what’s on the market and for what price, you know you payed Apple tax to make them reach a trillion dollar company.

Apple stood out for delivering the best. Those days are gone. I would rather see they would heavily invest those billions in delivering the best products again it would justify the Apple tax today.

Apple is totaling technological illiterates? Cars have been around for 120 years and most people can’t fix a car if there is an issue, to use that analogy of something that ought to be familiar.

I know what is on the market and to me they deliver the best for my needs and I’m happy to pay the Apple tax.

 

[8281]

SO??? Thats the beauty of capitalism. You give WILLINGLY and you get a tax relief. Thats is absolutely 100% the way it should be in this world.

More donors are now giving to donor advised funds. These funds allow someone to “donate” and take the tax write off, but the money doesn’t have to be dispersed from that fund ever. A foundation must give away 5% of the fund annually. Critics point to these donor advised funds and say they are a clear way to avoid taxes, while not really helping anyone except the fund managers. Not saying that’s what Cook did, just don’t think that because an article says someone donated money it necessarily means it went to direct services for vulnerable people, research, etc.

 

[I7guy]

So there's no room to critique that his actions to date (and vision) result in his receiving accolades here in this thread and elsewhere primarily for having the vision to "make money off products people still want to buy" instead of "make great products people want to buy?"

A leader who makes great products so the money follows is always better than a leader who follows the money.

Critique away. You are one voice out of the 1 billion Apple customers.

 

[yaxomoxay]

Apple is totally relying on it’s brandname and targeting the technological ignorant groups. Sure they make good phones etc. but when you know what’s on the market and for what price, you know you payed Apple tax to make them reach a trillion dollar company.

Apple stood out for delivering the best. Those days are gone. I would rather see they would heavily invest those billions in delivering the best products again it would justify the Apple tax today.

So you’re basically saying tha Apple is the most valued company in human history because it targets technological ignorant groups? Really?

 

[pipis2010]

There's nothing wrong with being about money. that's the whole point of operating a for profit corporation.

But there are certain ways of doing it, that will irk people. When you prioritize profit above all else, in order to just make profit for profit sake, some customers will get frustrated if they start to see the product quality, or price no longer offering the same value it once did.

this is a precarious perch to be on. Risk alienating too much of your customer good will by focusing on profit first, and you risk hurting the very way you make money. The customer. Not make enough profit and you risk alienating the investors and those who control who runs the company. By having the executives directly compensated by stock, It puts a burden on the executive to pump up the stock price for their own net worth. Pumping up the stock price on it's own can be done at the cost of the customer.

To use the cliche example: Dell, when it went public overwent a similar problem where suddenly pumping up the stock price became #1 priority, by pumping up profit margins and numbers. This was done by cutting costs. Dell didn't have the brand loyalty that Apple has, and eventually the customers suffered and started leaving. Eventually Michael Dell bought back control of his company and changed the focus to ensure that product quality was first and foremost, and that profit was necesary but not the #1 motivator. It turned Dell around.

The question lies, is has this been happening or starting to happen at Apple? paying attention to rumblings over the last few years, there is a noticable dip in product quality. Growth has slowed dramatically in most sectors. iPhone sales, while fantastic, and have seen increased revenues due to higher ASP have not seen growth in volume. IN fact, they have been relatively flat, with 2018 iPhone sales overall being slightly less than 2017 sales. Mac sales are the lowest in volume since 2010. iPad sales have been overall declinging (with few exceptions over the last few years). There have been numerous lawsuits regarding faulty products. Scandals involving throttling. Failing keyboards. throttling devices, etc.

Yet Profit margins, and ASP have gone up. Stock holders are currently happy because that means more money in their pockets.

Am I saying this is going to happen? that Apple, is the next Dell? BBRY? or many other companies that have fallen to the same pratfalls of profiteering for profiteering sake? No. But study and pay attention to business and it's a pattern that has oft repeated itself.

How will Tim Cook and the executives avoid erosion of it's good will (Which is the accounting term for the value placed on future growth, which is the bulk of their 1trillion dollar valuation as their assets an OE aren't near 1T?).

again, i'm not applying any personal bias into this. I think this whole thing is fascinating from a business studies perspective. From an investment perspective, Tim Cook has been absolutely a homerun hitter. But, from a products standpoint, there are numerous questions that are hanging in the air, that could cause a reversal if they are left unadressed. Is it potentially worth it for Apple to drop those margins a few percentage points, make slightly less overall profit, But deliver better value? or, do they truly believe their audience and customer base is going to stick around long term? Because right now, growth of volume has already started to cease.

EXCELLENT analysis!! Couldn’t agree more with you!!

 

[9081094]

And its all about $$$ not producing a good product i phone 6 battery issues mac book keyboard issues coatings on mac book screens pealing for the money we pay as consumers we should get a decent product. just saying.

Exactly, Apple has become a follower relying on its brandname. There isn’t one Apple product today that really stands above the crowd except in price. If Apple grew its engineers and developers the same way the company grew and a little bit less focused on cash... we would have decent hardware and a better Siri, maps, services. Although all Apple products are premium priced, the hard- and software are mediocre and an embarrassment to the Apple it once was.

 

[yaxomoxay]

Exactly, Apple has become a follower relying on its brandname. There isn’t one Apple product today that really stands above the crowd except in price. If Apple grew its engineers and developers the same way the company grew and a little bit less focused on cash... we would have decent hardware and a better Siri, maps, services. Although all Apple products are premium priced, the hard- and software are mediocre and an embarrassment to the Apple it once was.

Fine, buy something else. I truly don’t see the issue.

 

[pipis2010]

You bring very interesting points to the table.
I think that no one can argue the financial aspect: Apple is doing more than fine.
The question you ask is very difficult to answer. The problem is that Apple is very different than anyone else, and it has “spoiled” us for many years. Obviously apart the financial aspect which is embedded in any company by definition, the soul of Apple is design&quality. I do agree with you that we’re seeing a reduced differentiation factor if we compare Apple’s product with its competitors. Microsoft is doing a wonderful job at reshaping itself, and Samsung’s phones might not be good for us but they’re certainly not clunky or horrible.
I believe that the problem lies in technology itself. Apple made technology cool. Timed with the advent of the internet, Apple’s product were the de facto standard of usability, design, and quality. Windows PC’s were clunky while iMacs were all colored and cool, just to say an example. Technology, and its prices, changed so fast that now Windows Surface laptops are not ugly, and also not expensive. They might not be as elegant as what Apple has to offer, but still they are not bad. The fact is that you can grow your design&quality up to a certain point, and the more competitors grow in that field, the worse your product is going to look because the differential factor is reduced.
People buy Apple, as the numbers show. Some of it is branding and customer’s loyalty, but those numbers also show a very high level of satisfaction. While some people will never switch brand, I am pretty sure that the vast majority is ready to switch to Microsoft/Samsung in a second if Apple messes up. I, for one, am very happy with my original 12” iPad Pro, and I am very happy with my iPhone X. Right now, I would not switch. Give me a sucky product, and I’ll switch to surface in a second because now Microsoft’s offer is much better (compared to Apple) than what it was 10 years ago in the Ballmer era.

Now, this is not to dismiss your point. Apple will have to find a differentiator factor sooner or later. It could be a new service, a new ecosystem, a new product, and so on. And yes, they have to deliver better OS’s. However, each time I use Windows (which has vastly improve) or a Samsung phone, I am reminded why I use Apple.

All of a sudden this article became interesting. I am reading some great detailed analyses here - well said!!

 

[9081094]

So you’re basically saying tha Apple is the most valued company in human history because it targets technological ignorant groups? Really?

Yep, that’s Apple today... trying to reinvent themselves as the Gucci and Prada from computerland. Only fools pay those prices for their ancient computer hardware. So you must be ignorant or too much cash on hands.

Too bad Huawei isn’t allowed in the USA. It will give Apple a well deserved run for its money with decent quality built products at a reasonable price. I hear you say they blatantly copy Apple... check the facts... it’s mostly the other way around and they’re pouring more money on R&D each quarter than Apple ever did.
[doublepost=1534962105][/doublepost]

Fine, buy something else. I truly don’t see the issue.

I’m slowly getting out of the eco trap. Thanks. Just bought an Huawei P20. Never been happier with speed and photo quality

 

[yaxomoxay]

Yes, they do offer different products & Services. However I would maintain that the iPhone is their prime product. Which other product comes near?. If that lost interest, their products division would be severely lessened. Yep, their Services survive - for a while - but as Apple really push integration, as their product wing crumbles, will people be so bothered with their services, now they stand nearly alone? Something to ponder - when you tie all your areas close together & everything works, there is strength. But when one important area begins to fail, weakness follows.
And remember Apple is now controlled by fickle investors, who only care about a return on their money, Most have not one iota of interest in the quality of product; If you can sell people a Gold Painted Turd for $1,000 a piece, they'll invest & praise you to the end of time. But the moment nobody wants one you won't even have time to hear the Door close behind them.

You’re indeed correct. The iPhone is the prime product, and I believe that the reason is simple. A smartphone is the prime product in the daily life of virtually everyone. I won’t go into the “phones are bad” rant mentioning all the cases in which phones are used and abused, but I think that’s impossible to argue against the case that there is no other tool that we as a society use as much, as often, and in as many situations as phones. Right now, they drive our lives, from work-related stuff, to “social” stuff (Facebook, snapchat), and even for less mainstream stuff like meditation (1GiantMind, Calm, etc). They’re even changing policing, public administration, and public safety!
A smartphone (which in reality is almost everything but a phone) is the collant of our activities.
I don’t know if Jobs envisioned that, but Cook certanly embraced it. All services right now HAVE to have smartphones (and derivates such as tablets and wearables) at their center. I am sure that sooner or later we will move away from smartphones, and maybe Apple is already working on the next thing, but I don’t think it’s going to happen fast.

The main difference, in my opinion, is that the newness of smartphones is gone, so now only gradual improvements and gradual growth are in sight. That’s actually smart, long-term investing. A short term investor would invest (=bet) heavily on the next big thing in order to cash as much money as quickly as possible.
[doublepost=1534962328][/doublepost]

Yep, that’s Apple today... trying to reinvent themselves as the Gucci and Prada from computerland. Only fools pay those prices for their ancient computer hardware. So you must be ignorant or too much cash on hands.

Too bad Huawei isn’t allowed in the USA. It will give Apple a well deserved run for its money with decent quality built products at a reasonable price. I hear you say they blatantly copy Apple... check the facts... it’s mostly the other way around and they’re pouring more money on R&D each quarter than Apple ever did.
[doublepost=1534962105][/doublepost]
I’m slowly getting out of the eco trap. Thanks. Just bought an Huawei P20. Never been happier with speed and photo quality

And if you’re happy, I am happy for you. I am not being sarcastic, good for you. Just don’t call ignorant people you disagree with only because they prefer different stuff.

 

[DNichter]

Google and Amazon, in terms of valuation, are right behind Apple.

I am talking about the tech products. None of Google's tech products are successful and Amazon is glorified re-seller that treats their employees terribly. I don't consider them a major tech player.

 

[Tozovac]

noone is being censored from expressing any opinion they want. as far as the board, fund managers, analysts, institutional investors, and other shareholders are concerned....hes doing his truest duty -- guiding the company towards profitability -- almost perfectly.

its just business. not emotion.

That's just it.

Apple today (IMHO) = focus on selling products and make $$ (focus on business first)
Apple before, that got me to switch from Windows = focus on products that people really want (focus on products that sell themselves, that then make money)

Subtle differences, but different. That's just my opinion.

Critique away. You are one voice out of the 1 billion Apple customers.

I wasn't talking about just me wanting to say something I felt I couldn't; I meant more that: critiques of Tim's focus seemingly on what sells vs. what people really want to buy (a subtle difference, that maybe which I'm not explaining too well) are deserved but not too commonly said...
[doublepost=1534962820][/doublepost]

And its all about $$$ not producing a good product i phone 6 battery issues mac book keyboard issues coatings on mac book screens pealing for the money we pay as consumers we should get a decent product. just saying.

Exactly. I can't be the only one who would buy an Apple product today somewhat begrudgingly, and mostly because it's still slightly better than Android/windows. That's a lot different than 5+ years ago when an Apple product was leaps and bounds better than the competition.

 

[9081094]

I am talking about the tech products. None of Google's tech products are successful and Amazon is glorified re-seller that treats their employees terribly. I don't consider them a major tech player.

Chromecast, chromebooks, google home... to name a few... all successful products.

 

[DNichter]

Chromecast, chromebooks, google home... to name a few... all successful products.

Fair points, forgot about those. Yes, they are successful in terms of market share, but Google doesn't make any money off them. Unless we include customer data/advertising that it pulls from each of them, but that is hard to distinguish. All in all, they don't bring in any significant revenue from any of those devices.

 

[apolloa]

In the Scully era, the mac was near 100 percent of their business and Apple wasn't the richest company and top brand on the planet. Now mobile devices like iPhone and iPad make up over 70 percent of their business. Times change, get used to it. Adapt or move along.

As the guy says below... people who shout move on, adapt, get used to it... often forget the multi billion dollar industry, and multi billion dollars of profit, That iOS apps generate and they all need a Mac to be made.
So to simply tell people who like Macs to get used to not having any and go away if they don’t like it, is being rather short sighted of the overall picture.
And then 13 or 14 others like your comment?
If apps could be made entirely on PCs you’d have a point, but as I understand they can’t and require Macs. So it’s a device Apple should pay particular attention to, considering all the apps on a device where as you claim, 70% of its business comes from, are made. I’m more then certain without any apps that 70% would dry up rather quick.

When 70% of a companies business is based on mobile devices that are built on operating & app software developed on Mac then it's not a good idea to erode that foundation with neglect.