“Apple Computer’s bet on its founder and two-time chief executive Steve Jobs has paid off for investors. Now it is about to pay off for Jobs,” Bloomberg News reports.
“Jobs exchanged worthless options on a split-adjusted 55 million shares for 10 million shares of restricted stock three years ago. The shares, Jobs’s entire stake in Apple, vest in March. Right now, they are valued at $808.6 million,” Bloomberg News reports. ‘It’s a bargain,’ said Chuck Jones, a fund manager at Atlantic Trust Stein Roe in San Francisco. ‘I’d gladly pay him another $808.6 million to have him create another $65 billion in market cap.'”
Bloomberg News reports., “Already a billionaire from holdings in the animation studio Pixar, Jobs is reaping rewards from a comeback at Apple, whose share price has surged almost 11-fold since the option switch. On Tuesday, he said that Apple’s sales reached $5.7 billion last quarter, outstripping the company’s prediction of $4.7 billion, as demand soared for iPod music players and Macintosh computers.”
Full article here.
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Related article:
Forbes: Apple, Pixar CEO Steve Jobs is 67th richest American; Gates stays atop list – September 23, 2005
Apple CEO Steve Jobs a standout on Forbes ‘performance versus pay’ list – April 22, 2005
Apple’s CEO Steve Jobs took $1 salary again in 2004 – March 15, 2005
Finally a case where a CEO has to actually perform to get paid. Other companies should pay their CEOs in the same way — $1 in salary and the rest in stock.
Wish I bought more stock! Oh ya and first post!
iSteve, I love that idea. It should be universal.
PAY THE MAN! Then, PAY HIM SOME MORE!!
Paying Steve Jobs like this (and perhaps a few other high up executives) states that he was the only person responsible for Apple’s growth. What about the R&D teams, customer support, etc. How much of this $806 million do they get?
Good point Jeff. Say… how many karma points do you thing Steve would get if he gave, say, 100 million of that to his employees?
jeff,
Without Steve Jobs Apple most probably wouldn’t even be alive and paying the salaries and benefits and perks for the R&D teams, customer support, etc.
Steve Jobs saved Apple. That much should be clear to everyone. If anything, he’s under-compensated and deserves much more if you ask me.
Fred,
The inverse is also true. Without the teams of people working under and with him, none of this would have been likely either.
Either way, it’s hard for me to justify someone being worth nearly a billion dollars. Obviously other people have different ideas regarding just compensation.
MCCFR,
The current AAPL P/E ratio does not include the $5.7 in revenue from the holiday quarter. That officially comes out next week.
MDN MW: “light” – The world is waking up and finally seeing the “light.” The Microsoft Windows Dark Ages are coming to an end as you read this.
Who said they weren’t being compensated?
Don’t let jealousy cloud this matter. What Jobs has done with Apple is priceless.
Every year CEOs get bloated saleries and massive bonuses while company performance is lackluster. I hope Apple pays their R&D well but SJ is earning every penny from the stock. Had he not done such as good job as CEO those might be worthless.
Fred,
It’s nice of you to draw conclusions about other people’s attitudes based on your own perspective. Frankly, a billion dollars (or any amount of money) wouldn’t persuade me to trade places with Steve Jobs.
How does a guy like Job’s ever get time to spend anything – let alone these millions? Its not as though the tree-huggers even want to allow him to build a new house…
Bonuses are essential at keeping employees happy. However, every dollar given away as bonuses reduces the amount of money a company can spend on operations or release as dividends to shareholders. The trick is finding the balance point between what is right for the company, the shareholders, and the employees.
But what amount of bonus compensation is fair? Steve Jobs has done a superb job turning apple around, but how much was that worth? $1, $1 million, $1 billion, $10 billion? Maybe $806 million wasn’t enough. If the average employee makes $100,000 at apple, is Jobs really worth 8 THOUSAND times more than that one employee?
For god’s sake…let him build build a new house on his own property.
“Finally a case where a CEO has to actually perform to get paid. Other companies should pay their CEOs in the same way — $1 in salary and the rest in stock.”
Brilliant idea! In fact, another company did do this… what was the name again… Oh yeah, Enron.
The problem with paying a CEO in stock is that the CEO then has a motive to artificially inflate the company figures, just to increase the stock price, thereby making more personal profit. There are safeguards against that happening, and they’ve gotten stronger since Enron fell, but it’s still a questionable practice and much abused. In fact, Apple is, by most standards, a poorly run company. The CEO is too powerful and paid in stock, the board of directors is weak. Normally, that would be recipe for disaster. It works in Apple’s (and Pixar’s) case because Jobs places the health of the company over his own gain. Not many top CEOs have the kind of personal investment in their companies as Steve Jobs has.
Paying a CEO ONLY if he performs miracles? What a concept!
iMac Intel. . . . . . .$1299
MacBook Pro. . . . $1999
Bringing the Mac back from the brink of extinction?
Priceless!
how much are those offshore workers, who assemble mac products, earning? benefits?
we know the answer because ,otherwise, many of these jobs would be in the u.s.
To: “spread the wealth steve”
So you actually go out of your way to make sure you buy only products made in the USA instead of shopping at the Wal-Marts, Targets of the world we now live in where MOST EVERYTHING COMES from overseas because people would not pay the extra 10% for something that was made in the US sitting next to a similar but cheaper item that was not.
Walmart started it but everyone is now on the outsource bandwagon, if you want someone to blame for all that look at yourself and those around you, who willingly spent an extra couple of bucks to buy the US made product? The reason why US made is so rare is because NO ONE DID! We are a services economy now, we better hope that lasts.