“Apple Computer Inc. said Friday that Chief Executive Steve Jobs’ compensation for the past fiscal year consisted of a $1 salary, just as it did for the previous two years,” MarketWatch reports.
MarketWatch reports, “After canceling his outstanding options in March 2003, Jobs got 10 million split-adjusted restricted shares and has received a total of $4 in salary since, according to Apple’s most recent annual report and previous documents filed with the Securities and Exchange Commission.”
Full article here.
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He does the work because he loves to. Can life get any sweeter than that?
“He does the work because he loves to”
Or, he makes all his money on the stock so he only has to pay capital gains tax which tops out at 15% instead of income tax that can go to 35%
Coolfactor:
10,000,000 shares x $84.84 (today’s closing) = $848,400,00.00. If I had that in the bank I’d love it too! Steve’s a great guy, but let’s not kid ourselves.
let’s not kid ourselves with regard to any ceo. most take the stock AND a handsome salary.
I disagree. We should kid ourselves. Let the kidding begin!
Class envy, class envy, class envy . . . here it comes!
I have respect a CEO that ties his renumeration to the success of the company. I have no problem with Jobs being rewarded in stock options. It’s a great motivator for improving the value of the company.
Why doesn’t AP run this story???
Spark, you hit it right on the nail
CEO’s pay , should be based on how well the company is doing.
Wonder what the CEO of Ford was payed last year??
Steve sold 4,573,553 AAPL shares to pay taxes on his vested shares. He now owns 5,246,451 AAPL shares as of 3 March 2006, along with his 138,000,007 Disney shares that pay dividends
Maybe his dollar salary has been backdated to 500 BC making it worth about 1,000,000 in today’s dollars
Steve should get a one Billion €uros´s doing what He can BEST!
Cheers to all of us who owns AAPL!
He needs to be paid :
100,000+
What a dude, Compare Theresa Gattung’s from New Zealand Telecom. LOL
I wonder how Steve gets that one Buck?
Does he pop down to the pay office and flash his ID.
Accountant : “Job’s… Steve Jobs, ah yeah i’ve got the paper work here somewhere… ah here it is.”
“Sorry, only got Quarters and Dimes. sign here and here.”
Steve’s salary is inline with his factory workers. He just wants to keep everything fair.
This sort of structure only invites re-examination of the tax code. Clever. In the short term.
Fair AND smart. As CEO, tie your fortunes to the company (fair), and get to pay a lower tax rate as capital gains (smart).
Gotta love that Jobs!
Spark, is it gonna motivate them for maximising the company value short term or long term?
Or, more precisely, if you are such a CEO and have options, and you want to get the most out of them, you make sure that the share price peaks when it’s best for you. That might happen to be the same moment as when your kids want to go to college, but it could also not be.
Motivation through money is mostly an incentive to optimise on the wrong parameters.
That’s why I’m glad that Steve really seems to enjoy his job, an has his heart in it.
“Fair AND smart. As CEO, tie your fortunes to the company (fair), and get to pay a lower tax rate as capital gains (smart). Gotta love that Jobs!”
And taking his salary directly from the pockets of the other shareholders in a way most of them they don’t understand. Brilliant.
They should double his salary!
Definitely way better to get that 10M shares rather than be paid a poultry 1M in salary. If you average that over the nine years since he rejoin Apple in 1997 that makes over $80M dollar a year. Of course that isn’t income until he sells it, but it sounds like he’s paid the tax on that already, so when he does it will all go to him!
Note he takes the $1 in order to get health insurance! Smart move considering the cancer treatment he needed.
Nathan,
SJ, like any other Apple employee who gets a grant of shares, pays income tax on the value of the shares he’s granted at the time that they come into his posession. Capital gains only enters into it if the shares are held and sold later at a profit.
-jcr
“Definitely way better to get that 10M shares rather than be paid a poultry 1M in salary. “
Yes, what would he do with all those chickens?