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Sat, Nov 21, 2009 - 09:36 AM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

Five reasons why Apple paid off Tony Fadell
Thursday, November 06, 2008 - 04:03 PM EST

"Apple Senior Vice President Tony Fadell, the [so-called] father of the iPod and one of the driving forces behind the iPhone, could receive a payout valued at nearly $9 million (a $300,000 salary and 77,500 shares valued at $8.4 million) for acting as a senior advisor to Apple CEO Steve Jobs," Steven Burke writes for CRN.

"The payout is part of a complicated settlement agreement that prevents Fadell from suing Apple or soliciting Apple employees for one year after he leaves the company," Burke writes. "The agreement, which was disclosed in an Apple Securities and Exchange Commission filing, ties Fadell to Apple until March 24, 2010."

Burke gives five reasons Apple agreed to the big payout to Fadell:

1. It Prevents Fadell From Bringing An iPod Killer To Market In Near Term
2. It Prevents A Messy, Drawn Out, Bitter Legal Battle
3. The Payout Keeps Fadell From Poaching Apple Developers
4. It Keeps Fadell Pushing Big Product Development Advances At Apple
5. It Keeps Steve Jobs At The Center Of The Apple Universe

Full article, complete with rampant speculation, here.

MacDailyNews Take: Maybe Tony found himself on the wrong elevator at the wrong time with the wrong answer. Or maybe he really does just want to devote more time to his young family.

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Nov 06, 08 - 04:06 pm Comment from: fan

tony fadell is so hot!

Nov 06, 08 - 04:13 pm Comment from: MikeR

What did he do that displeased Apple?

Nov 06, 08 - 04:19 pm Comment from: Wandering joe

What did he do that displeased Apple?
went to Mikey Dell and offered his help, maybe....

naaaah

Nov 06, 08 - 04:25 pm Comment from: Scott in Japan

I don't understand. From previous articles it soundedblike Fadell left in good terms and would continue with Apple in a limited role. Now this article makes it sound as if there is bad blood or at least distrust among the two parties. What gives?

Nov 06, 08 - 04:30 pm Comment from: Balcony View

I think this is the legal way for Apple to bring the IBM dude onboard in a capacity that does not violate his non-compete with IBM while keeping Fadell in the Apple camp.

Nov 06, 08 - 04:35 pm Comment from: Mac Tramp

It's the execution of best practices and from the metrics, #4 is propitious; any of Fadell's ideas would be welcome and what better way to ensure his continued success than for Apple to leave the door open.

Silence is golden.

Nov 06, 08 - 04:59 pm Comment from: Tony Fadell

Alright guys, I can't stand the speculation here, so I have to come clean.

I was recently involved in an accident at Apple while touring the facilities we're using to produce the next iPods; we will be using the same "brick" manufacturing process as with the new MacBooks and MacBook Pros. However, an unexpected explosion has lodged shrapnel in my chest near my heart that cannot be surgically removed, but only held away from it by a powerful electromagnet. In order to power this, I in my personal lab have developed a new power source, the arc reactor, in which produces more power cleanly than anyone thought possible before this. However, I am angered by all the injustice in the world, and thus have decided to take the fight to the enemy personally by building a titanium/palladium power suit and flying around battling the forces of evil, all utilizing my new found power source.

This will take so much of my time that I cannot remain at Apple as a full time employee, and thus have resigned thus far. My wife and I have gone into hiding to protect us from reprisal. This is not about betraying Apple, thus I freely signed non-compete contracts extending forwards, though in order to pay for my excursions I got some money out of Apple first.

I hope this clears up what's going on and puts the rest these speculations about some sort of scandal.

Sincerely,

Tony Fadell

Nov 06, 08 - 05:06 pm Comment from: nobodi

Maybe, just maybe, Fadell is worth $9M to Apple.

Nov 06, 08 - 05:07 pm Comment from: Duh!

He left on good standing, the lawyers ae just covering their bases. With his wife leaving also, it would give any lawyer a wedgie from the possible implications.

Nov 06, 08 - 05:18 pm Comment from: R2

God bless you, Tony Fadell. God bless you and Godspeed in your travels.

Nov 06, 08 - 05:42 pm Comment from: SixnaHalfFeet

I think we are seeing how Apple deals with important people leaving the company as compared to the way IBM deals with the same issue.

Steve may be tough, but at least he sweetens the situation with a carrot instead of a lawsuit.

Nov 06, 08 - 05:43 pm Comment from: Jeremy

Total make-believe click-whore article. There is no reason to think that Tony left under anything other than good terms.

Nov 06, 08 - 06:16 pm Comment from: Bigdog

I'll take a $9 Million payout any day!! Or just give me the $300,000 a year--I'd even be happy with that!!!!

Nov 06, 08 - 06:33 pm Comment from: paranoid

Perhaps Tony and his wife have left to spend with their young family OF MORMONS?

Nov 06, 08 - 07:20 pm Comment from: Ken

Sometimes you don't appreciate spending time with your young kids until you spend it with your grandkids.

The couple are in a financial position where they can spend more time with their kids and take time to "smell the roses". I sure wish I was in that position when my kids were young!

Nov 06, 08 - 08:11 pm Comment from: Al

If I was that young with that much money and a hot young wife, I would take $9,000,000 and quit too.

Nov 06, 08 - 08:22 pm Comment from: John C. Randolph

He hasn't even left, for crying out loud! He's still reporting to Steve Jobs, he's still getting a sizable salary and stock options that vest over several years.

The guy's not leaving Apple, he's just cutting back to have some time to enjoy with his kids while they're young.

-jcr

Nov 06, 08 - 08:26 pm Comment from: neomonkey

The kids are probably cringing at this. I know I wanted to spend as much time as possible away from my parents. Kids relate to their friends, not their parents.

Nov 06, 08 - 08:43 pm Comment from: rotten ronnie

What did he do that displeased Apple?

He used that banned iPhone fart app on Steve Jobs.

No? smile

Nov 06, 08 - 11:12 pm Comment from: Jeff

All this is a way for him to leave and for Apple to keep any knowledge he has of future products from getting into the hands of Apples competitors.

Advisor to Steve Jobs means he has to advise Steve of his every move and if he should talk to or take a job with a competitor in any capacity he can say good buy to all that free money.

Nov 07, 08 - 03:16 am Comment from: maclover

ROFLMA "Maybe Tony found himself on the wrong elevator at the wrong time with the wrong answer"

Fantastic!!

Nov 07, 08 - 05:19 am Comment from: MacSheikh

@ Tony Fadell

You almost got me there.

Everyone knows a Titanium/IRON power suit is way better & stronger than a titanium/palladium one.

Nice try though. Lol! :-D

Nov 07, 08 - 05:32 am Comment from: Tony Fadell

Good grief ... all I said was 'we should put firewire back on the ipod'

It was only a suggestion Steve!!!

Nov 07, 08 - 06:51 am Comment from: phinias

Fiddle Fadell

Nov 07, 08 - 10:29 am Comment from: RePlay

Or maybe,

InFadell? smile

Nay. He's gotta be a good guy.

Nov 08, 08 - 09:01 am Comment from: BGuy

I think the reason for the swap is pretty clear. Apple really wanted Papermaster in Fadell's spot. Fadell is a good guy, so Apple didn't want to punish him. Ergo, the elaborate plan to be good to Fadell while replacing him with Papermaster.

"Want to spend more time with my family" is always a fake, generic answer.

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