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

[ckhris1613]

More CEO greed

 

[Substance90]

Apple is the most valuable company in the world yet Tim Cook isn’t even a billionaire?

WTF, why would he be a billionaire? He's an employee of the most valuable company in the world, not THE owner.

 

[apolloa]

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.

Pretty much everything you said. They didn’t need to start the X from 1000 pounds, but they did and thanks to that they kick started a price increase across the market, whilst making record profits from fewer sales, they do not need to directly convert $1 to £1 but they do, it all means profit profit profit.
As for quality, we’ll Face ID from what I’ve read and seen in so so so many places just is not as good as Touch ID. That’s not a quality product, that’s a waste of 1000 pounds! Sure you can get Face ID two but surprise surprise that will means giving more money to Apple for another phone...

A good example of how sales affect value can easily be seen with Microsoft and Sony.
When the Sony PlayStation 3 sales were lagging a fair bit behind the Microsoft Xbox 360, Sony offered fantastic games every month to its users paying for it’s PlayStation Network service over Xbox Live subscribers.
Now flip to the current PlayStation 4 and Xbox One and the complete reverse has happened, Sony gives cheap indie games with the odd big title for free every month, whilst Microsoft gives amazing value and big games for free every month to its subscribers.

It’s a good example of when a company is sitting pretty, they hold back on the value and concentrate on the profits. And that to me seems to be Apple currently?

 

[notabadname]

And yet the Mac is in its worst shape probably since the Scully era.

Yeah, that’s right! Disregard that the Fastest Mac EVER was released as an iMac, and that the MacPro is confirmed to be on it’s way. And that the Fastest Laptops Mac has ever made JUST got released. Silly facts get in the way of hyperbole every time. Yes, the Mac is definitively in its death throes.

 

[yaxomoxay]

They didn’t need to start the X from 1000 pounds

This is based on what?

 

[cpfoto2005]

Suddenly those 23.000 shares doesn't look like much, when he just received 560.000 more. I wonder what he needs all those shares for, instead of just donating them.

I'm sure there are people living in poverty who wonder the same thing about your wealth, whatever form it may take.

 

[MarkB786]

As much as Apple products have fallen out of my personal favor, their business model works and I love owning their stock.

 

[netdoc66]

Can you redo this with 2 Infinity Gauntlets to replace the hands?

I like how the low contrast between the shirt and background makes it looks like you're supposed to chroma-key them out.

 

[jonnyb098]

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.

Has it occurred to you that Apple might be working on a way to make iOS apps using iOS? So actually my comments and the many who liked it realize that crying about the Mac is getting old and Apple seems to know exactly what they’re doing, hence my comments in the first place. The overall sentiment is embrace change and the future not get stuck in the past. If Apple did that they wouldn’t be where they are today. Just because something doesn’t make sense today doesn’t mean it won’t make sense in a year or two.....or 5.

 

[cpfoto2005]

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.

The shareholders' outrage is being drowned out by all the money that they are making.

 

[apolloa]

Has it occurred to you that Apple might be working on a way to make iOS apps using iOS? So actually my comments and the many who liked it realize that crying about the Mac is getting old and Apple seems to know exactly what they’re doing, hence my comments in the first place. The overall sentiment is embrace change and the future not get stuck in the past. If Apple did that they wouldn’t be where they are today. Just because something doesn’t make sense today doesn’t mean it won’t make sense in a year or two.....or 5.

No, because firstly you cannot make iOS apps on iOS, and secondly, I doubt very very very much people will want to change computers, full size keyboards, mice and monitors for an iPad with its keyboard.... and no mouse.
Your comment is based in assumption, mine was based in fact. You seem to lack the foresight to see the facts as they are, telling Mac Users they are getting old crying over the Mac, then attempting to predict it’ll all be different in five years, that’s making things up to support your comment, ignoring the reality of the present does not excuse being wrong with your comment, or those who liked it.

 

[cpfoto2005]

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.

I'm actually quite happy being a technological ignoramus.

 

[Peperino]

Quite funny that Apple rewards Tim Crook,

Since Apple's entire computer line up is a complete joke.
Products upgrade cycles are ridiculous.
Innovation has been dead for many years now.
In the last 10 years many products have been failure after failure (Mac Pro, Macbook (2016 w/ touchbar, etc).
iTunes GUI is cumbersome and worse than ever.

Yet no one is being fired... (Edy Cue, Phil Schiller, ).

 

[DNichter]

Quite funny that Apple rewards Tim Crook,

Since Apple's entire computer line up is a complete joke.
Products upgrade cycles are ridiculous.
Innovation has been dead for many years now.
In the last 10 years many products have been failure after failure (Mac Pro, Macbook (2016 w/ touchbar, etc).
iTunes GUI is cumbersome and worse than ever.

Yet no one is being fired... (Edy Cue, Phil Schiller, ).

They are selling more products and making more money than ever before. Customer satisfaction is very high. Just because they are moving on from products you value, doesn't mean they are failing. They are actually doing really well as a company.

 

[citysnaps]

Quite funny that Apple rewards Tim Crook,

Since Apple's entire computer line up is a complete joke.
Products upgrade cycles are ridiculous.
Innovation has been dead for many years now.
In the last 10 years many products have been failure after failure (Mac Pro, Macbook (2016 w/ touchbar, etc).
iTunes GUI is cumbersome and worse than ever.

Yet no one is being fired... (Edy Cue, Phil Schiller, ).

Yet...Several hundred million people, many repeat customers, willingly open their wallets and purchase outstanding Apple products at premium prices. Year after year after year.

Hat-tip to Mr. Cook leading Apple and its 120,000+ employees! He's doing a fantastic job!

 

[Spizike9]

I love the picture for this article.

I was thinking the same thing!

 

[jonnyb098]

No, because firstly you cannot make iOS apps on iOS, and secondly, I doubt very very very much people will want to change computers, full size keyboards, mice and monitors for an iPad with its keyboard.... and no mouse.
Your comment is based in assumption, mine was based in fact. You seem to lack the foresight to see the facts as they are, telling Mac Users they are getting old crying over the Mac, then attempting to predict it’ll all be different in five years, that’s making things up to support your comment, ignoring the reality of the present does not excuse being wrong with your comment, or those who liked it.

Really? Wanna play the facts game? The fact of the matter Apple sells more iPads every quarter than macs. So yes people are opting to use iPads over macs meaning your “doubt very very very much” remark is nullified by actual real world sales. Go look up apple’s quarterly revenue results. Since iPads are much cheaper than macs means it’s actually multiple times the amount of Mac sales per unit. We get it you’re angry over the Mac but trying to fight facts with emotion doesn’t get you anywhere. Of course I can’t predict apple’s future but I’m sure as hell not implying they stay complacent as you are. Agree to disagree on that matter. But as far as sales per unit the iPad it beating the hell out of the Mac.

 

[andreiru]

Not at all with the company and how i've been treated the past year.

 

[SuperCachetes]

Came here to see jealous wanna-be socialists, bitter whiners who think Apple product "X" is crappy/forgotten/too expensive, and holier-than-thou dissenters who classify millions of consumers as undiscerning fools for pushing Apple's growth under Cook.

Was not disappointed. :/

P.S. I'm a shareholder, and consumer. Nice work, Tim.

 

[apolloa]

Really? Wanna play the facts game? The fact of the matter Apple sells more iPads every quarter than macs. So yes people are opting to use iPads over macs meaning your “doubt very very very much” remark is nullified by actual real world sales. Go look up apple’s quarterly revenue results. Since iPads are much cheaper than macs means it’s actually multiple times the amount of Mac sales per unit. We get it you’re angry over the Mac but trying to fight facts with emotion doesn’t get you anywhere. Of course I can’t predict apple’s future but I’m sure as hell not implying they stay complacent as you are. Agree to disagree on that matter. But as far as sales per unit the iPad it beating the hell out of the Mac.

I’m not angry over the Mac, I just dislike people who moan and complain about those who are. Especially when they do not know the ‘facts’. iOS apps need Macs, that’s a fact today and will continue to be so for the foreseeable future, maybe one day Apple will make iOS be as powerful as OSX and allow it to make iOS apps, but that’s nothing more then assumptions and guessing.
All your comment does is provide further evidence of exactly why Apple needs to improve and update its Mac range, for all those app developers.
And that’s another reason why Cook isn’t worth all those stocks IMO.

 

[netdoc66]

I don’t want to edit a movie or work on a intricate music production on an iPad. iOS is a toy operating system. I want the professional tools I built my career with. If Apple has a hard time understanding these tools are still needed by the professionals who’ve made careers with them they are truly lost as a company. If they don’t value the professional product line, they should stop playing like they do and drop support altogether.

 

[Jim Lahey]

Congratulations to Tim Cook. The guy deserves it

 

[Baymowe335]

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

No they aren't. Not on any scale that matters.
[doublepost=1534973123][/doublepost]

Quite funny that Apple rewards Tim Crook,

Since Apple's entire computer line up is a complete joke.
Products upgrade cycles are ridiculous.
Innovation has been dead for many years now.
In the last 10 years many products have been failure after failure (Mac Pro, Macbook (2016 w/ touchbar, etc).
iTunes GUI is cumbersome and worse than ever.

Yet no one is being fired... (Edy Cue, Phil Schiller, ).

Hmm, do you ever look at the facts or do you just speak in generalities? Cook has quadrupled the AAPL's share price and market cap, doubled revenue and profit, and sells 3X the iPhones during the Jobs era.

Fact is, computers (Laptops and Desktops) are secondard compared to mobile computing (iPads, iPhone, Watch, and the services that go with them).

Apple is still doing just fine in the Laptop/Desktop game. They are just small drivers of a $1T company. They still make fantastic Laptops and sell 3-4M per quarter like clockwork. When the hardware refresh numbers are out, they'll be back to record sales there too.

 

[MacBebe]

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.

Add me to the "technological ignorant group" LOL

 

[iMi]

I personally think these type of short-term compensation packages are bad for society and for business long-term. Plus, it's outrageous for one employee to receive $120 million bonus. Just one person. This is what's wrong with our country.