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Tim Cook to Receive $750 Million Worth of Apple's Stock This Week
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What with exactly? Tim retiring or the car happening in the next decade? Or both?
If you think Tim Cook is paid too much, and has amassed too much wealth, take a look at his contemporaries. CEOs of Amazon, Facebook, Google, Microsoft, Tesla who are making the CEO of Apple look poor by comparison. (And none of those other companies are creating shareholder value like Apple does.)
Are you kidding me right now? It was just a random example to illustrate the use of that phrase. I wasn't comparing the queen of England to Tim Cook or anyone else. Seems like you totally missed my point. Replace "queen of England" with anyone who is considered famous or important and the point is the same.
They are all paid too much. My parents owned a bar for years. They were the shareholders. Would they have allowed their managers and other managers from other bars on a “board of directors” made up of their buddies to meet up and decide what their own pay would be?
Not in a million years. That would be insane. The owners should determine what the managers make. Not the other way around. Yet this is the exact same behavior that’s legal for public corporations.
It’s insanity and it must come to an end. The solution is simple. All income, no matter how it’s derived is subject to the same tax brackets, revert those brackets to what they were in the late 90’s but with one exception. All income over 10 million a year is subject to a 99.99% tax rate.
Do that tomorrow and watch the middle class start growing again because that would either force the C-level executives to figure out where to invest that money in goods, services or employee pay or pay massive amounts in taxes the government can use for programs that help the middle class, working class and the poor instead of putting it in their own pockets.
There are only so many homes, cars, planes and boats one can own. Most of that money just sits in investment accounts effectively taking it out of the economy beyond that. That’s BS. We fought a war to reject unelected monarchies and fiefdoms with unearned wealth based on who they descended from.
How is that any different from the system we have now? There are still monarchies and fiefdoms based entirely on birth and not merit. We just don’t give them titles over here. Give me a break. Enough is enough, unless your a CEO apparently.
Consumers buy products they value, for whatever reason. Investors buy Apple stock based on perceived future value Of that stock. As long as that trend continues, those holding shares benefit. As long as the buying trend continues, how you value what Apple does is not relevant.
We all vote with our dollars. By buying the product you are buying into the companies ethics, compensation structure.
Shareholders have all the power. They can force that change. They choose to line their own pockets instead.
The problem is the subjectivity is out of the equation by comparing specs. That subjectivity enables BMW to sell a $120,000 M5, which at it's heart is just a car to move people from one place to another. You can buy the same people mover for under $20,000. If one gets down to the heart of the specs that all a car does is "move people."
In this case Apple produces a product that subjectively people buy in droves and why Tim Cook gets the bonuses he does. Whether or not one subjectively thinks there are better specced phones at a lower cost.
I can say it with a straight face.
He is paid $14.7m. He gets a bonus for 10 years of leadership. How about 10x his salary, 1x for each year, at $147m.
Would you say he would be underpaid and didn’t get what he deserved if he got $147m in stock instead? With a straight face?
So if $147m is totally fair, why is the other $600m necessary?
It’s not. It’s excessive. And it showed poor judgment on the Board’s part 10 years back to not peg his bonus to years in service and salary, instead of to some arbitrary number if shares which dilute the shareholder basis when issued.
At Apple we are a team. That is until today, when f you I want my shares and no I'm not sharing them.
Absolutely. They all have so much money they can single handedly shape the direction of cities, states and nations with their wealth. They are the new Kings, Emperors, Feudal Lords, etc.
Man, some of you have very odd concepts and theories regarding compensation. It's a highly subjective thing, but you are treating it as if there's some set rules. He gets paid what they think he's worth. That's it!
I am done discussing this. Everyone's denying it of course, but it all boils down to jealousy/envy, plain and simple. You can try to rationalize your objection and make it sound noble or pious all you want, but I'm not buying it.
👋
Is it though?
Is he actually working 10-50x harder than the average employee (based on his 14.7m 2020 salary, not including the stock which is just obscene)?
I'm not trying to single apple out here, but executive wages across the board are way, way beyond reasonable when you consider that there are people employed at the same companies likely struggling to pay modest bills related to survival.
When confronted with an opposing argument you can’t actually refute, you resort to ad hominem attacks and leave.
Is that the Eric Cartman school of debate?
Compared with the quality of conditions for the people he exploits to make his products, this is pretty distasteful to say the least.
Nice way to rub people’s noses in it. Lots just had 18 months of hell, at least a 20% pay cut with furlough and he’s rewarded for robbing people, with millions of stock that he could no doubt sell on day 1. The iPhone 13 will likely be getting a price increase to pay for it. Anybody who thinks that Tim Cook is anything but greedy needs a sanity check. Prices going up, restrictions going up, Cooks wealth going up, discontent with Apple going up, people awakening to what a greedy company, Apple is, going up.
Ironic that he is the CEO of the world's richest company (according to Global Finance https://www.gfmag.com/global-data/economic-data/largest-companies) but yet he comes no where close to being one of the worlds top richest billionaires (he comes in 2263 on the list, according to Forbes https://www.forbes.com/billionaires/ )
Even Steve Jobs widow is richer than Tim Cook due to the Apple stock that Steve left her and the family in his will (she is 94 on the list according to Forbes)
Even Steve Jobs widow is richer than Tim Cook due to the Apple stock that Steve left her and the family in his will (she is 94 on the list according to Forbes)
I don’t understand what’s the controversy here. He did is Job well for Apple and got some shares for it. I think this the way to do it.
$750M in shares … a lot of collateral that can used next time he asks for loan
$750M in shares … a lot of collateral that can used next time he asks for loan
$14.7M is a lot of $$. Unfortunately, like in sports, CEO compensation is based on comparable salaries. And TC's base salary is comparably low. Especially considering the current size and scope of Apple.
Recognize, Lebron James is earning $39+M/year. Teddy Bridgewater is making over $11M. Patrick Mahomes is making $45M. Is PM working that much harder that TB? or are they getting paid for the results they have had. With the growth that Apple has seen since TC took over as CEO, he is arguably underpaid.
He’s creating a lot more value than the average employee. Else, by your logic, the janitor should be paid more based on the sheer number of hours put in.
Neil Cybart wrote an article on this back in 2017, and I feel it’s still quite relevant today.
Above Avalon: Grading Tim Cook
It's not easy describing Tim Cook's role within Apple. Yes, he is CEO serving at the discretion of Apple's board of directors. However, there is much more than this going on behind the scenes and Cook's formal title. Apple isn't run like an average company and shouldn't be judged as one. This impact
www.aboveavalon.com
He has also increased Apple’s market capitalisation by far more than any other company out there to my knowledge.
And I think this is what his pay package reflects. Tim Cook has spent the last 10 years building up Apple’s culture, and this will play a crucial role in how Apple navigates the next 10 years.
It wasn’t a perfectly smooth ride, but I am glad it was Tim Cook at the helm.
<SARCASM> That board was so incompetent, AAPL shares were at $13-14 at the time of issue and are at $145 today, how dare they only deliver 1100% earnings.</SARCASM>
5 million shares for 10 years of service cost "the shareholder" 65 million dollars. Having created The hit to the shareholder is at the issue price not the sell price. The shares are "effectively" purchased at time of issue and held in trust.
Apples Market Cap in 2011 was 377 Billion, today it is at 2.44 Trillion. Tell me again how this incompetent board grew the companies worth by TWO TRILLION and whether their bet on Tim Cook was Excessive.