“It sounds noble. A top executive takes a $1 salary, opting to base his pay on the performance of the company’s stock, and thus the company itself,” Michael Brush writes for MSN Money. “At a time when the average CEO makes about $10 million a year, the $1 salary makes for good public relations. But dig into the pay packages and you’ll find a different story. As a rule, CEOs on the dollar menu have some of the richest pay packages around.”
“Steve Jobs has a golden touch, having founded Apple and having played a big role in the development of Pixar. But he collects just $1 a year as Apple chairman and CEO and gets nothing for doing both jobs at Pixar. Even so, he’s well-compensated for his time,” Brush writes. “In 2003, Jobs convinced Apple to exchange the options he held on 15 million Apple shares for 10 million restricted shares of Apple stock. Both numbers are adjusted for stock splits. Options only pay off if a stock rises beyond a pre-set target price, and Jobs options were below their ‘strike’ price. In essence, he received a smaller number of real shares in exchange for a larger batch of potential shares. Restricted shares are not registered with the Securities and Exchange Commission, and, typically, there are restrictions on when the shares may be sold. As it turns out, though, he would have made more money holding onto the options because of how well Apple’s shares have performed.”
“When the swap was made, the company said Jobs wanted to eliminate the ‘overhang’ of unexercised options that might depress Apple’s stock price. Apple said the move also freed up options that could be used to compensate other employees. It wasn’t the first creative pay maneuver at Apple for Jobs, who returned to the company in 1997. In 1999, Apple gave Jobs his own Gulfstream jet plus compensation for related expenses like taxes. Total value of the package: $90 million,” Brush writes. “Jobs has done even better at Pixar despite the lack of any formal pay there, too. In lieu of pay, Jobs owns 60 million shares, or 50.6% of the company. He originally paid $10 million for that stake and later injected $50 million of his own money into the company, according to BusinessWeek. With Walt Disney’s deal to buy Pixar, that slug of stock was worth more than $3.4 billion.”
Full article here.
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Come to think of it, it’s probably about time to trade in that antique jet for a 21st Century version. (And it had better come with a built-in iPod dock!)
This is nothing new, lots of people set themselves up in such a way to avoid paying taxes.
It’s just you poor working class peons that take up the slack.
But isn’t that always the case?
The Fed gives low prime rate to banks, they lend money on the cheap, it creates a real estate boom, housing prices and rents skyrocket, food and basics go up to cover the increased rents.
But they don’t increase the minimum wage or wages in general to compensate
Yep I made a ton in real estate in the last few years, but some fscker is busting their ass another 20 years to pay for their house.
Ain’t life grand?
So what is his take then? The article sounds like it is going to bash Jobs on is compensation but then proves that he gave up money in the Apple stock change. Pixar he has made out very well, but that is due to his ownership of the company not due to anything morally wrong.
Is this intended to be digging up dirt? I see no dirt.
http://www.michaelklouda.com
Being noble has nothing to do with it. It’s called being smart, and Steve obviously is.
and therefore made LESS money, while helping the company by avoiding overhang.
So that TOO is selfless.
As for the jet… how much of that jet money does Steve see? None. How much does he use it for personal travel? Some. But I don’t think he has huge blocks of free time, somehow. So it’s an on-the-job type of perk.
All of this is ancient news anyway. Yes, Steve Jobs IS making money. Just like Apple shareholders. Just like Bill Gates. Just like Halliburton in Iraq. Just like all of us.
it’s just symbol that CEO looks like working hard without high pay. but Steve own more than 50% of Apple stock, and 7% of Disney Corp. so he doesn’t need salary as you know. plus, I dislike steve’s social contribution unlikely bill gates. he is just greedy businessman when it comes to thst point. I hope that he will donate money, establish certain foundation to help poverty, AIDS, children around the world. if he will do, more lot of people will be interested in him, and Apple.
Folks, look again at who’s written the “article”. It’s MSN Money. Enough said.
MW: forms. The line to bash MS “journalism” forms here.
Let the Steve bashing begin.
Both companies would not exist now without Steve’s intervention.
No mater what Steve has made from his investment and/or management of the 2 companies, the shareholders of those companies are far better off for his work than he is.
Everybody wins here.
“but Steve own more than 50% of Apple stock”
edward, where the heck did you get that idea from?!?!? I’m pretty sure that’s WRONG.
Ok if that’s all he gets – double it.
edward — You don’t understand charitable giving or foundation building. Very few at that level of wealth give for altruistic reasons, probably least of all Bill “I’ll do whatever I want” Gates.
The fact that Jobs keeps his giving private impresses me to no end. That’s the way it SHOULD be. He doesn’t trumpet his own benevolence. He just runs two companies that create wealth for untold numbers of people by making great products and contributing in innumerable ways to the world economy.
Yaah, you’re right — he’s a scumbag.
NOT!
My boss at a small family-owned company did the $1 salary thing, too. She always would say I made more than she did, which was b.s. in reality, as she was the VP, her husband was the president, and her son was the GM. Somehow I think all that made up for her paltry salary.
But dig into the pay packages and you’ll find a different story
—
Everyone knows this. If you think SJ makes $1 a year you’re a freakin lunatic
He rightly deserves his compensation, whatever it is. He has brought Apple back from near collapse. And he did it his way. You go Steve.
I thank you, and my G5 iMac thanks you too!
Angelus520,
When that boss said to you that you made more than she did, you should have told her “Yeah, but I’ll bet you spend more than I do.”
“The fact that Jobs keeps his giving private impresses me to no end”
A little too much adoration there. There are legit reasons to keep it private, but why should you be so impressed?
Bill makes many of his public – it goads other wealthy to contribute, too.
“Michael Brush writes for MSN Money”… Exactly!!! Mikie Brush writes for meager food bill and he is jealous!! Anyway, I wonder if Steve gets a pay check of 8.333 cents every month or 4.1666 cents every two weeks.
zupchuck — Bullsh!t.
No “other wealthy” are “goaded” to contribute to anything. And while we’re at it, “contribute”? Contribute to what? If by contribute you mean “give to charity”, then fine. But I stand by my statement: If you think the fact that Bill Gates gives a relatively small percentage of his money away to “charitable” causes somehow burdens other wealthy people with guilt and convinces them to give too, I’ve got some land in the Everglades I’d like you to “contribute” to.
And even if it did convince a person or two to give — SO WHAT? First of all, many, many charities are a waste of money and shouldn’t be given to. Second, many people with the amount of wealth we’re discussing give to charitable causes through their trusts and other tax-saving shelters; many of them have their accountants and money managers set-up the giving and they don’t even know who they’re really giving to. Third, true charity comes from within, and doesn’t need a press release accompanying it.
I’ll take Jobs’ private, more humble giving over Gates’ public giving any day and twice on Sunday.
If one is goaded into contributing, then that’s not charity at all, is it? Rather, it’s . . . well . . . keeping up with the Gateses.
Did anyone even read the entire article? Sure, it mentions Apple, but also Google, Capital One and Kinder Financial. I wouldn’t consider the last two MS competitors now, would you?
It’s certainly an interesting read, and I don’t think he passed judgment on anyone himself. Rather, it was more “here’s what their pay packages are, make your own call.”
But no, people like “PT Barnum” immediately smell a bash at Jobs and Apple. Whatever.
Remember he came on the apple computer when it’s market cap was 2 billion, and he was trying to get his friend larry ellison to buy it. Not Apple is over 65 billion in market cap. He deserves more then any CEO I know if he can improve a market cap of a company like that.
If larry ellison had bought apple and if everything went the same as it is now, he would be by far the richest person on earth.
I work everyday with Steve, but his last name isn’t Jobs. I’m not sure where people came up with that crazy sh!t
“I dislike steve’s social contribution”
How do you know what his social contribution is? Why is it your business? And why should SJ (or anyone else) care about your opinions on how others spend their money?
“unlike bill gates. he is just greedy businessman when it comes to this point.”
You do not know this….and it’s none of your business how he or anyone else spends their money.
“I hope that he will donate money, establish certain foundation to help poverty, AIDS, children around the world.”
I don’t. That would be a complete waste of money. There are TONS of foundations already doing this, it would be far more effective to donate to them (which he may already do). To create a new foundation would be self-congradulatory, and most of the money would go to running the foundation.
“if he will do, more lot of people will be interested in him, and Apple.”
No they won’t. They will be more interested if he continues to release good products….and advertises.