Apple CEO Steve Jobs tops list of highest paid Bay Area executives

Steve Jobs, co-founder and CEO of Apple Computer Inc., was the highest-paid executive in the San Francisco Bay area in 2003, according to a new study,” The Associated Press reports. “Jobs received a salary of only $1 in 2003, but he traded in almost all of his stock options for $74.8 million in restricted stock, according to an analysis of 400 publicly traded companies in the Bay Area by San Mateo-based Equilar, which tracks executive compensation.”

“Other Bay Area CEOs in the top five included John Chambers of Cisco Systems Inc. ($47.7 million), Meg Whitman of eBay Inc. ($42.6 million), Stephen Bennett of Intuit ($29.9 million ) and Craig Conway, formerly of PeopleSoft Inc. ($26.9 million),” AP reports. “The list of best-paid executives for 2004 is still not available because most companies will not report compensation information until next year.”

Full article here.

MacDailyNews Take: Jobs is worth every penny and more.

Related MacDailyNews articles:
Bloomberg columnist: Steve Jobs cost himself about $371 million with ‘bad move’ in Apple stock – November 24, 2004
Jobs tops highest-paid US CEO list; $219 million a year – August 13, 2003
Report shows Steve Jobs highest paid CEO – September 25, 2002

11 Comments

  1. No one should ever count options the way these reporters do.

    The way they tell it…
    If I get options for 100 million shares in some company at a strike price (the price I have to pay to convert the options into real stock) $0.99 a share and then I turn around and sell them for $1.00 a share then I just made $100 million dollars. I sold the stock for $100 million and thus I must have “made” $100 million according to 99.999% of these reporters. In reality, I had a net profit of $1 million. I paid $99 million for the stock and sold it for $100 million.

    This was most clearly pointed out when years ago Jobs was granted a HUGE chunk of stock options several years ago. Many reporters were saying Jobs was getting paid over $1 billion in stock options. Even Amelio came out and made statements about how extreme Job’s compensation was. (Amelio’s “golden parachute” had been estimate at over $400 million, and Amelio was trying to get people to think his “golden parachute” was not that egregious.) The reality was that the strike price on those options was more than the value of the stock at that time. It would have cost Jobs money to exercise the options. He would have LOST money if he sold the stock. Yet reporters were looking at the just the then current value of the stock and the number of stock shares Jobs had options for and NOT looking at how much it would have cost Jobs to buy the stock.

    Thus the “over $1 billion” in stock options were completely worthless. Jobs even offered to sell 100% of those options to one reporter (one of the most vocal at the time) for $1.00. The reporter never took Jobs up on the offer. He knew what was really going on — the stock options were worthless — but just wanted to keep writing the lie that Jobs was getting “over $1 billion” in compensation.

    If anyone wants to figure out exactly how much Jobs makes it will take a LOT of research into what the strike prices of each allotment actually was and what the sale price actually was.

    The bottom line is that 99.99999% of these reports on senior management making tens or hundreds of millions on their stock sales are purely fantacy. The reporters don’t do the math and just want a big headline.

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