In her article in the New York Post today, “Jobs Oinks Way to Top of Hogs List,” Lauren Barack writes, “Steve Jobs has made a pig of himself. Apple’s CEO earned $78.1 million in restricted stock options last year, even as shareholders saw their stock plummet 34.6 percent. CEOs of technology companies earned six of the top 10 spots as the biggest hogs in corporate America – an honor bestowed in the latest Fortune magazine upon those whose firms fell more sharply than the S&P last year and who nonetheless scored more than $22 million in compensation.”
Full article here.
From Fidelity Investments:
“A Restricted Stock Award is a grant of stock by an employer to an employee in which the employee’s rights to the shares are limited until the shares “vest” and cease to be subject to the restrictions. Typically, the employee may not sell or transfer the shares of stock until they vest ? frequently a defined period of time ? and forfeits the stock if the employee’s employment terminates before the stock vests. There is a growing trend within corporate America to reward and motivate employees using Restricted Stock Awards.”
http://personal.fidelity.com/products/stockoptions/rstockawards.shtml Web page.
This means while Steve was awarded all these stock options, there are certain factors that must be met, before he actually owns them. Plus there is no way one can sell that amount of stock. So this is just a lot of unusable value, after they vest he can begin cashing them in. Till then it’s monopoly money.
one could even make an argument that he needs MORE options as the value of each one falls!
One more reason to have MacWorld in Boston. Better press.