“Apple Computer Inc. Chief Executive Steven Jobs took a $1 salary in 2003, as he has since 1998, and received $74.75 million in restricted stock in exchange for his outstanding stock options in March 2003,” Reuters reports. “The Cupertino, California company did not pay Jobs, who is also a co-founder of the company, any new stock options or cash bonus in 2003. No other executive received stock options in 2003, Apple said.”
“Jobs began taking a $1 salary one year after he returned to Apple in 1997, aiming to turn around the company he helped found. But over the years, other compensation for Jobs has been criticized, such as stock options and a $90 million jet,” Reuters reports. “The grant of restricted stock, which Jobs received in exchange for cancellation of 27.5 million stock options, vests three years from the date of the grant. The move, which Apple disclosed a year ago, was part of the company’s effort to reduce the percentage of issued stock options as a total of options and shares outstanding.”
Full article here.
He’s worth all they pay him!
I think he should have only taken $.99
$75 million in stocks FAR outweighs his $1 salary. Why not take a $74,499,999 salary and $1 in a split stock? No offense to king jobs, but his perks are WAY to high. If I remember correctly his $90 million plane was followed by articles in various publications claiming that it was one of the biggest executive perks in recent history.
jeff:
these types of compensation are commonplace for CEO’s and other officers…Jobs adds more value to the company than $100 million a year. As far as I’m concerned Apple is getting him cheap. Your beef might be with the industry as a whole, but as long as Jobs is adding value he’s worth it.
Hey, Steve Jobs has turned Apple around…through innovation, good products, and excellent leadership. Their stock is rising – they’re a debt free company – and Apple has what – 4 or 5 billion in the bank? Out of all the overcompensated executives out there…at least Steve’s doing things right.
The amount of Jobs’ compensation or any other employee’s compensation for that matter shouldn’t be judged by the raw dollar amount but rather the ratio of value added / compensation. Would it be fair if your employer were making billions directly from your work and all they offered you was a $10,000 bonus. No. You would be livid. Why is it so wrong for CEO’s to recieve millions when their companies are earning hundreds of millions. If the share holders have a problem with it then the share holders should take control of the situation and find a CEO that works for less. Remember that you get what you pay for. Share holder apathy is the biggest problem in corporate America and not CEO salaries as some would like you to believe. Shares holders have a fiduciary responsibility to themselves as well as the fiduciary responsibility that executives have to shareholders. If you don’t like how much your employees are getting paid then I ask, why did you agree to pay them that in the first place?
Wait wait… So let me get this straight. Jobs only gets paid $1 a year?? (in addition to stocks and etc) I wonder if he has to worry about filing for taxes and stuff?
Well, at least we know why the iPod isn’t any cheaper… they need to keep up profits to pay off the chief.
re: b “I think he should only have taken $.99”
HA HA HA HA
that’s great. i agree too.
thanks,
The plane is leased, not an outright purchase.
Can Apple pay him with an iTMS download?
Back when Apple was in a death spiral, every qualified CEO candidate wanted a HUGE golden parachute, (they wanted to get paid to fail!) Steve took the job for $1 a year. He would only make money if he pulled off a miracle, that deserves compensation. If the stock holders want a cheeper CEO (Apple has had three in the recent past) I think Michael Eisner will soon be available.
I believe he deserves those ‘perks’ also. Just checked Apple’s stock at CNN. Right now, Apple’s stock is doing better than Microsoft ($27.64 to $25.52). I don’t when Apple’s stock did better than Microsoft’s.
Jeff thinks Steve Jobs is overpaid. Hmmm. I wonder how much Bill Gates “earned” last year. Is he overpaid, too?
rockjohnson, I see nothing wrong with CEO’s getting millions if their companies are making hundreds of millions — it’s good for there to be some relationship between the value someone brings to a company and their pay. That said, I think the same needs to be true for *everyone* in the company. If the company’s doing well, *everyone* involved should be rewarded.
Without knowing the inner workings of Apple, I would hope that’s true of them, at least as much as it is of other companies.
The market is will to pay relatively more for Apple’s stock than Microsofts with a 75 P/E ratio as oppossed to Microsoft’s P/E of 31. However Microsoft stock still outperforms Apple’s stock by almost a 2:1 ratio. Microsoft returns .816/share and Apple returns .371/share. Now to really compare how BIG Msft is as compared to AAPL. Microsoft has almost 11Billion shares outstanding while Apple has a little less than 370Million.
As a proud AAPL shareholder, I have to say that Apple has a long, long, long way to go in order to be compared to Microsoft in terms of shareholder value.
“The plane is leased, not an outright purchase.”
It’s also used for company business, not just for Steve’s personal pleasure flights. On the surface it sounds like a lavish gift but I’ll bet it’s worth every penny to the company.
I think that 1 infinite lane should have one golden toilet for King Jobs to control his company from his o’mighty thrown. All Hail King Jobs!! Also hey Steve umm can I borrow a “Buck” I need a Pepsi and a chance to win a iTunes song I’m so parched.
Steve was head of a team that saved Apple. I wonder how much Jonathan Ive got last year in restricted stock. Or Fred Anderson.
I agree that $75 Mil in stock is more than any one person should ever get, but then again, what other option does Apple have? Jobs can name his own price because without him, the company would go down the tubes.
Chris White:
Yes, you bet Jobs pays taxes – he has to have an income from something, and that something is most likely sale of the stock he’s given. He has to pay capital gains on that.
Just because the price of Apple’s shares is higher than the price of Microsoft’s shares, that doesn’t mean that Apple is somehow doing better than Microsoft. Stock price means nothing by itself. If that were the only measure, Berkshire Hathaway (Warren Buffett) would be doing extremely well with a share price of $91,900 as of today’s close. But as it turns out, Berkshire is worth less than half of what Microsoft is worth. MSFT’s market capitalization (stock price multiplied by shares outstanding, which is the total value of all shares combined) is in excess of $270 billion. Berkshire’s is $118 billion. Apple’s is $10 billion.
Dave H – Jonathon Ive is reputed to earn around �1,000,000 a year. Don’t know about options, and it could be $ – but it’s safe to say he can pay his council tax bill…….
Larry, Rock Johnson:
Thanks for the info. I agree that this doesn’t give the overall picture, just thought it was interesting. Wasn’t it about a year ago, Apple’s stocks < $17.
It is totally good that the CEO believes to his company. We = Stockholders made hundreds of millions this week alone. We will make more with Steve Jobs. Apple will be Great again in stock wise.
>> Right now, Apple’s stock is doing better than Microsoft ($27.64 to $25.52).
Heavens to Betsy, this is about the most ignorant thing I’ve seen all day. Just because Apple’s stock price is higher doesn’t mean it’s “doing better”. Otherwise, Microsoft could fix this with a stock split. You can’t simply compare stock prices to determine who is winning. Comparing the company’s valuations (stock price x shares outstanding) is far more useful.