“Apple Inc. said Monday that Chief Executive Steve Jobs got a salary of $1 last year – as he did in 2004 and 2005,” Jared A. Favole reports for MarketWatch.
“The Cupertino, Calif., tech company said in a proxy statement filed with the Securities and Exchange Commission that… Jobs has received the majority of his compensation through an equity grant and isn’t eligible for a bonus, according to Monday’s filing. He doesn’t receive any other compensation, the company said.”
Full article here.
Related articles:
Forbes’ list of world’s richest people: Apple CEO Steve Jobs 132nd with $5.7 billion – March 09, 2007
Apple’s CEO Steve Jobs took $1 salary again in 2005 – March 13, 2006
Apple’s CEO Steve Jobs took $1 salary again in 2004 – March 15, 2005
Apple’s CEO Steve Jobs took $1 salary again in 2003 – March 11, 2004
Yes, and he took it around the world on his Gulfstream jet.
I have a larger salary than Steve Jobs.
Less satisfying than I had anticipated.
A CEO that gets paid to succeed and nothing to fail. What a novel concept.
When your paid $1 a year you do things your way to make it work and don’t worry about people playing politics. It works for Steve.
Does he have to pay tax on that?
DOnt they have to pay him minimum wage?
I bet they frame it for him for gratis too.
He’s got a wall in his home, with 97, 98, 99, 00….
Probably the best value dollar anyone has ever paid.
Gee, Apple is mean. No wonder Mr. Jobs is skinny. I think we should hold a tag day for him.
DOnt they have to pay him minimum wage?
No, because he’s a manager, like the janitor at Target.
Think I read somewhere that “The Woz” also gets $1 / year, too …
Wonder if that’s still true ?
all nice and dandy but I’ll gladly exchange my salary (thousands and thousands more than Steve’s) in exchange with Steve’s salary and his equity grants.
Can someone help me out. What is an equity grant? I mean, what is it and whats it really worth. Sounds like some type of tricky accounting.
He doesn’t exactly paid for the company’s success. He gets paid for an increase in the stock price. While it would seem that these should go hand-in-hand they frequently don’t. There is a great deal of correlation between the performance of the overall market and the performance of an individual stock. Price is impacted by future expectations more than current performance. His rock-star persona fuels these expectations which increase his compensation.
Price falls whenever a company pays a dividend. Apple is sitting on a mountain of cash but if it chose to pay a dividend it would hurt Jobs’ compensation. Is this fair? (if he got paid those dividends it should net out but only before taxes)
I’m not saying that the comp plan is or isn’t good or fair or anything else. I’d be curious to know what an executive compensation specialist thinks of paying on price vs current performance.
He exercised equity grants from 2003 that were worth almost $850 million. Much deserved, but he won’t be starving, so don’t worry about him.
Dear Pervis,
An equity grant is where an employee or manager is paid via stock options. This is seen as an incentive for compensating good employees.
A possible downside of equity grants is that it can dilute the value of shares own by existing shareholders. Also where an employee is in a non-core position there is little incentive to work harder because these employees never get access to such options.
One final downside of such grants is that somebody comes into a firm with a specific goal which they achieve and then go to the next organisation achieve the goal and then hop on to the next firm and so on and their main compensation are via equity grants.
Summing up this explanation, I guess you could say that equity grants are an example of the new economy. And the argument for and against are linked to the old economy verses the new economy.
Pervus,
I misspelt your name. My apologies but it early in the morning where I am.
Think I read somewhere that “The Woz” also gets $1 / year, too …
Wonder if that’s still true ?
Considering that the only reason that Jobs accepts even the $1 is so he can be on Apple’s health plan, I wouldn’t be surprised.
“Considering that the only reason that Jobs accepts even the $1 is so he can be on Apple’s health plan, I wouldn’t be surprised.”
I find this very hard to believe. Make that impossible.
Steve Jobs takes a $1 every year. And it is really basically meaningless that he does because he one of the wealthiest individuals around.
What are we trying to say here. That somehow by taking $1 that somehow he is saceficing something. Wow Steve Jobs is amazing because he only takes a $1 every year. Yeeesh.
Give me the homeless person that finds $20 on the street but gives it away to someone else because he or she doesn’t need it. Now that is something to take note of.
I bet he bought an iTune with his salary …..
What is a reasonable estimate of earnings Steve derives from the lease of iJet (Gulfstream V) provided by Apple as compensation in 1997? A form of private income off the public radar. The most recent public reports indicate Apple reimbursed Steve $220K for business operations. That leaves the iJet unused or on loan to a leasing company.
Who follows the travels of iJet’s tail number N2N based at Stockton Airport CA?
“What are we trying to say here. That somehow by taking $1 that somehow he is saceficing something.”
No, Why Is This News, I don’t think anyone here is saying anything like this at all.
@Benton – Great question!
When the circa 1995 CEO of Sony USA was fired he drove to Teterborough Airport (North NJ), hopped in a company jet and flew it away. It never occurred to anyone at Sony to let airport ops know he couldn’t take it. He was a pilot and they had acquired it at his urging. I never did learn the outcome.
Steve was taking $1 even back when Apple started, so it’s not like he got rich and then started to take a $1.
Give me the homeless person that finds $20 on the street but gives it away to someone else because he or she doesn’t need it. Now that is something to take note of.
Take note of that? you bet, explaining why this homeless person is on the street, complete idiot! Showing the world why there are bums. Com’on, really, comparing Steve Jobs to a bum? You would want to hear about a person who throws their life away, and what they might have do with money they find (not money they earned, of course)? You sound sort of brain-dead.
@last commenter
Holy Shit. Brain dead? Look in the mirror projection boy.
I wasn’t comparing Steve Jobs to a bum. And the reality is that there are lawyer and very other highly educated people who are homeless. While certainly it is possible, I doubt many people wake up and say I think I am going to be a homeless person for the rest of my life.
Sounds like you are a compassionless person who has probably had an easy life. Maybe not. But you definitely sound spoiled
Salaried employees are exempt from minimum wage only if they are paid at least $455/week. Apple is breaking the law; it probably gets around it by monetizing some of his other compensation and paying employer taxes on it. See
http://ehso.com/cssdol/dolsalariedexempt.php