“It’s official: Apple’s Board of Directors and executive team, led by Tim Cook, clearly never had or have completely lost any real respect for Steve Jobs,” Rocco Pendola writes for TheStreet.
“…The company’s decision to tie the size (hence, value) of upper management’s stock option packages to S&P 500 performance is so tragic,” Pendola writes. “This is not only a rebuke of Steve Jobs and the Apple way — the very essence of what made Apple the world’s greatest company — it’s a perverse validation of Wall Street and the stock market. As if Wall Street should play any role whatsoever in determining how much anybody from the CEO to the cleaning crew at Apple makes.”
“It’s an easy move to make when you’re already rich beyond comprehension,” Pendola writes. “You’re putting compensation at risk that’s little more than icing on an already badass cake… It’s all lip service. Something we’re seeing more and more of from Apple under Cook’s leadership… These guys are recklessly and multi-handedly desecrating Steve Jobs’s legacy. This is just another example of Apple losing its way, operating like every other company.”
Pendola asks, “If Tim Cook really wants to tie his pay to performance, why doesn’t he use unit sales of Apple’s next big piece of hardware as the benchmark, not a market index that’s coming off of one of history’s biggest bull runs?”
Read more in the full article here.
Tim Worstall writes for Forbes, “The performance metric is surprisingly strong: ‘The relative TSR criteria will be applied to each 80,000 RSU tranche scheduled to vest on each anniversary of the original August 24, 2011 grant date, and will compare Apple’s TSR to the TSR of the companies in the S&P 500 using public data derived from Standard and Poor’s. If Apple’s performance is within the top third of that group, the RSUs in the tranche for that year will vest in full. If its performance is in the middle third, the RSUs in the tranche for that year will be reduced by 25%, and if its performance is in the bottom third, the RSUs in that tranche will be reduced by 50%.’
“TSR is Total Stockholder Return and is, essentially, stock price appreciation plus dividends in any one period,” Worstall explains.
“I can imagine any number of other CEOs spitting with rage at this. For Cook has voluntarily come forward and demanded (hmm, asked? insisted?) that he should be held to a performance target and that also it should be a stringent one. And finally, that he can only lose money for failing it, not gain any more for beating it. And I’d expect some of those CEOs to be spitting with rage because this might wake up some of the more supine boards out there and become a template for stock awards that are rather more stringent than those usual at present,” Worstall writes. “I would have to say that it’s full marks to Mr. Cook on this.”
Read more in the full article here.
Related article:
Apple tumbles below $400 – June 24, 2013
After precipitous stock slide, Apple Board puts 40 percent of Tim Cook’s pay package at risk – June 21, 2013
Unfortunately this is spot on. Wall St. has little to do with reality.
Yeah, despite the loss in stock value over the past 3/4 year, I’ve been fairly confident that Apple was still on a correct thinking path. I’ve been looking, waiting for a sign that they truly have lost their way, and this just might be it. When the incentive in the board room is stock price, you can kiss the “our primary goal is to make great products” goodbye.
I agree.
Cook appears to be running Apple for Wall St and the iOS7 UI too. The exact opposite of Jobs. I’ve been a big defender of Cook to friends and family – but now I think Apple is going backwards.
Jobs could be arrogant because he was confident and brilliant and running managing Apple to follow HIM. Cook wants to be liked by Wall St and knock some of the Apple arrogance down.
Apple is in a tenuous time for itself – brought about by Cook
yup, since cooks big paycheque and several errors,
the firings, the current supply chain, handling of legal issues, partnerships, overseeing software and key members;
apple has been in a bad position – the John Scully years are back
This does seem like a more rational way to handle stock grants than the “heads I win, tails you lose” version most CEOs get. Good for Mr. Cook.
Not really. While AAPL has not performed well over the past year, Apple Inc. has performed very well. The stock price certainly does not equate to company performance.
just take a look at other company. APPL seems only one to react kind of bad situation even though it has sold lots still. it is a sign that something is wrong inside of apple. but it’s only the story in US. for worldwide, apple sale really sucks hell. you should know it.
No, barely sentient wall st. analysts playing Monopoly with their own faeces for counters is no reflection on any company’s health. As has been proven over and over again.
Jonny Ive should be CEO
Please, no. Ive should NOT be CEO. Let the man do what he’s best at doing. And that’s design. CEOs spend most of their time looking at financials. I can’t believe this meme keeps surfacing.
Jobs never struck me as one who spent most of his time looking at financials. You are an idiot.
No, you’re an idiot. Jobs spent quite a bit of time figuring out how he could make money selling the next big thing. That’s the financial aspect of it. Jobs may not have monitored every penny, but he certainly knew what technology had to go for to make money.
Woz was the guy who didn’t care about the financials.
get real Biz, Jobs was no beancounter. I know you feel the need to defend beancounters because you are one.
Such a petty, snippy little jerk you are, botvijerk.
hypocrisy |hiˈpäkrisē|
noun ( pl. hypocrisies )
the practice of claiming to have moral standards or beliefs to which one’s own behavior does not conform; pretense.
ORIGIN Middle English: from Old French ypocrisie, via ecclesiastical Latin, from Greek hupokrisis ‘acting of a theatrical part,’ from hupokrinesthai ‘play a part, pretend,’ from hupo ‘under’ + krinein ‘decide, judge.’
re “hypocrisy”
What you and I do is VERY different, botvijerk. I insult you only because you insult people — to throw your shit back at you. I never insult people because I disagree with them or think they are way off base.
You, on the other hand, routinely insult people. Why could you not simply say, “Jobs never struck me as one who spent most of his time looking at financials”, and stop at “financials”. Why do you have to finish with an insult?
Oops! Silly me! Of course, the real point is that it makes zero difference whether I’m a hypocrite or not. Either way, you are a thoroughly obnoxious, petty, snippy little jerk.
Hypocrite your are, big time.
Little miss manners lecturing every post you don’t like on how to respond in a civil manner and NOT call names.
Wake up, you broke your own rules by resorting to name calling our Yankee fan and your credibility is now a joke.
I suggest you redeem yourself by commenting on the articles for a change and leave free speech to the rest of us. Your scolding is a waste of time because it yields minor to nothing in results judging by the responses
That said, hey, have fun whatever. The one-trick pony lives on and judging by the comments, we ignore you …
Responding in 3… 2… 1…
the lady doth protest too much.
@Contrarian
re “you broke your own rules”
Not at all. I’ve clearly explained that I NEVER insult someone simply because I disagree with what they think — even if I disagree enormously. But if someone wants to throw shit (swear, call people names, and insult them) then I’ll throw shit back.
re “Your scolding is a waste of time…”
I dunno. Many people “scold” the rude jerks from time to time. I think it’s good think for the jerks to know that many don’t like the way they conduct themselves. And I find it very supportive when I read others telling sfgh, Nut, First and others to piss off.
And I still hope that on some far off sunny day, MDN will decide to have some basic standard of politeness on here. The more various people confront the rude jerks and voice their disapproval, the more like that is to happen.
Thoughtful response.
However, you are still employing the same tactics you lecture against, albeit your reasoning is different.
For me, prefer to stick to the same code across the board. Obvious you are not a journalist with an AP Stylebook on your desk. Exemptions are infinite, iffy and a slippery slope … destroys credibly.
“However, you are still employing the same tactics you lecture against”
Contrarian, I suggest it’s a different thing.
On the one hand we have someone engaging in verbal/emotional violence for some possible motivation that he just likes to hurt people, that he wants to dominate, that he gains pleasure in causing pain or attempting to cause pain.
On the other hand, we have someone engaging in a seemingly similar action to attempt to negate the action of the violent jerk.
It’s parallel to physical defense. One engages in physical violence for perverted pleasure. The other engages in physical defense of themselves or others. The two look physically the same. But the second person ONLY does theirs in reaction to violence. The timing and motivation are entirely different.
If botvijerk stopped the insulting and name-calling, I would have no reason to continue any such posts, and would never again type a swear word or call him names. On the other hand, if I stop, he will just carry on with his pathetic nastiness. Another way in which our actions are very different things.
To me, inaction that allows violence to carry on unchecked — whether physical or verbal — is not a desirable course.
“Hurt people?”
Sticks and stones will hurt my bones but words will never hurt me.
Unless your a polically correct liberal. Paula Deen career destroyed with one free speech word blacks use everyday. Shameful!
“Sticks and stones will hurt my bones but words will never hurt me.”
Specious.
What is the point of calling somebody names or implying an insult? You are discussing these points with me. On the other hand, botvijerk’s contribution to this exchange was to call me a lady. (Oh, no! Swoon. Got me there with that piece of literature, botvijerk.) In such a post as his, with zero thoughtful or concrete content, his purpose is obviously to attempt to hurt.
Obviously name-calling and insulting hurt people, or, if not outright “hurt”, create an unpleasant environment. Otherwise there is zero point to such words and using them would be simply empty stupidity.
I don’t think botvijerk is engaging in empty stupidity. I think he is a nasty little bully who wants his words to have a negative effect on their target. Repeating a cliché does not negate that fact that words have real effects.
“Sticks and stones will break my bones but names will never hurt me.”
Particularly on a blog. Your PC liberal argument is classic BS. Words here on MDN cannot shoot bullets or throw punches! Ridiculous.
Go watch a movie.
“Words here on MDN cannot shoot bullets or throw punches!”
I think botvijerk would not talk like that to his boss, or to client/customers, or to 300 lb bikers — because words have real effects on people and those people would respond by firing him or not coming to his business or kicking his teeth in.
By the way, don’t you see anything contradictory in defending his “right” to talk to others however he wants while criticizing me for doing so?
“Sticks and stones will break my bones but words will never hurt me.”
How many times does it take to hit your head against the wall before you figure out it hurts?
Since neither of you work at Apple or knew Steve Jobs you’re just speculating. He said, she said. But it’s kind of funny.
how would you know I didn’t Jobs? do not assume.
Okay, I’ll bite…
Did you know Steve Jobs and if so how can you prove it?
Secondly, The article is stupid… “This is not how Steve Jobs would’ve done it, blah, blah, blah…”
Wasn’t it Steve Jobs himself, who told his round table of executives to not ask, “What would Jobs do?”
It’s not Job’s Apple anymore…
And it appears the stock is no longer the darling of Wall Street’s eye, even though their financials are envied by any Fortune 500 corporation!
Unfortunately, as a AAPL share holder, I doubt $700 is ever coming back and don’t worry, I’ve iCal’d myself to refer back years from now.
Uh huh. Sure.
Steve *absolutely* cared about the financials — otherwise he would not have pushed Apple from the mid to low 30% gross margins in the late 70s to the upper 40% gross margins in the last few years before his death.
What Steve *absolutely* did not care about what how Wall Street viewed Apple’s financials. If Apple was increasing revenues and controlling costs (by whatever means — which is why he liked Cook) and thus increasing profits, then Steve was happy about the financials. Steve’s days of repainting the production equipment to make it all a more acceptable color (at least to him) were long gone by the time he returned. It was all about making things people would want to buy (whether they knew it or not) and about making a good profit on top of it.
Yes, Steve was not a stereotypical “beancounter”, but he definitely was interested in, and invested in, Apple’s financials.
“Apple’s goal isn’t to make money. Our goal is to design and develop and bring to market good products… We trust as a consequence of that, people will like them, and as another consequence, we’ll make some money. But we’re really clear about what our goals are.”
ahhh not care about money – jobs, lets sell off our pixar shares at the peak time – i want my friends to be wealthy
jobs was far more balanced – he earned enough, he loved what he did – he was passionate about his company – he balanced financing and stocks — just like he balanced — hardware and software
he put the right people in the right place – because – he knew what team meant
apples stock soared not because of cook…
it was the ripple effect of jobs as apples second coming
if steve was still alive, no matter how ill he was, i am sure the stocks would have never plummeted like they have
cook needs to step down
and ives should back off ui design
DO NOT go to that article. Enough of Pendola’s drivel was posted on this page, so there is no need to give those idiots even more hits for their sad douchebaggery.
He’s dead on. Why is he wrong? Inform us about this douchebaggery…
Because it does NOT effect in ANY way how Apple produces the products it makes. In essence it changes NOTHING.
Affect, not effect.
Pendola is a hack who’s been attacking Tim Cook ever since the stock slide began. Rocco is the proverbial blind squirrel feeling around for nuts.
Tim Cook’s payment package, and AAPL’s performance, has zip to do with what Jony Ive and the others churn out down in Cupertino. Nothing whatsoever. Even if I don’t agree with what Apple does sometimes, or what Tim Cook does, none of this BS has anything to do with what Apple does best.
apple has an amazing team still – engineering is unbelievable
and they do brilliant software and hardware
and still innovate and press further then any company to provide computing experiences for the rest of us, be that by phone or by computer
agreed – the article is dead on
“This is not only a rebuke of Steve Jobs and the Apple way — the very essence of what made Apple the world’s greatest company…”
Just look at iOS 7 and you know he is right. YUK!
I look at iOS 7 and I know you’re a dickhead.
Why can’t you just say, “I REALLY disagree” and leave it at that?
“Dickhead” adds nothing to the discussion — except to show us the level of your maturity.
congrats…
yes, can we all not respect the opinions of others?
if you don’t agree leave it – yet add to a comment if you agree
the one reason i remain anonymous is the lack of respect seen on this site… in addition the amount of advertising held by ad mob / google here
Nice observation on the Google ads. Guess MDN doesn’t think Google is that evil!
hypocrisy
noun
SYNONYMS dissimulation, false virtue, cant, posturing, affectation, speciousness, empty talk, seamusness, insincerity, falseness, deceit, dishonesty, mendacity, pretense, duplicity; sanctimoniousness, sanctimony, pietism, piousness; informal phoniness, fraud. ANTONYMS sincerity, unseamusness.
not happy also with iOS7, but one thing Apples is now transparent with some of these new features taking a lesson from Android – can only hope Apples implementations better the user experience and remain easy to do
Baloney. If anything, iOS 7 moves MORE toward what Jobs would want – hardware and software which work seamlessly together, not a hodge-podge of looks, actions, effects, etc. A unified interface that takes the thought and difficulties of computing away from the consumer and makes the experience joyful.
ummm right – coloured bubbles clearly defines gaming
Nice one.
Well, yes coloured bubbles is actually a pretty good one for gaming, an area mainly populated by children and faux adults and which doesn’t exactly add anything worthwhile to the world. Gaming = light and frothy = bubbles.
Agree regarding the look of iOS7.
My brother in his fifthties has never owned an Apple product until a few months ago when he bought an iPhone 5 and he absolutely loves it!
At a family function yesterday showed him pictures of the new screen icons in iOS7. Immediately said they were hideous and some of them hard to figure out what is what.
Also mentioned they look like Windows 8 tile icons on his home computer, also hideous. Pointed out the good thing in Windows 8 you have the OPTION to turn of the tiles and go back to the classic look, exactly what he did.
Options is good, everyone can choose their preferred look.
turn OFF the tiles
Wait…????? your brother bought an iPhone 5 yet he changed the look of the tiles on his windows icons back to the classic look……???
And he loves his iPhone 5 and yet hates something that has not come out yet????
Rather confusing here.
Wait…????? your brother bought an iPhone 5 yet he changed the look of the tiles on his windows icons back to the classic look (CHANGE ICONS BACK TO CLASSIC LOOK ON HIS HOME COMPUTER IN WINDOWS 8 BY SWITCHING OFF THE TILES COMPLETELY, NOT CHANGE THE TILE ICONS THEMSELVES, 8 HAS AN OPTION TO CHOOSE WHAT HE DESCRIBED AS THE XP DESKTOP)……???
And he loves his iPhone 5 and yet hates something (DESIGN OF THE NEW ICONS ONLY, HATES THE LOOK AS MUCH AS WINDOWS TILE ICONS) that has not come out yet????
Hope I cleared that up for you.
I don’t have to use it to KNOW the look of the new iOS icons are spartan, outlines and loss of most gradients, rich illustration and depth — I find unappealing. Simply prefer the JOBS ‘classic’ look.
Am I only a 99% fanboy?
I too love most of what apple stands for
I also have many apple products and for many years
I have made a fantastic living working with Apple even
yet I am sorry to admit
I do own but rarely use an Android device.
ugh – im doomed
does this make me any lesser of a Apple Fan?
People, grow up. I think Android is horrid in many ways, however in other ways, it has provided opinions to consumers. Apple should have eliminated Android if it is such a stolen product, yet it is free to evolve and it is out pacing Apple at the moment. Apple seems to be copying the nice features in Android. If you love computing and electronics – why does it have to be solely to Apple.
Apple is fragmented in other ways, iOS has HD and Standard apps – no need for that if scale and dimensions remained constant
Your point about Android innovating features in software faster has happened too many times for comfort. Other posters have mentioned the same in very detailed examples noting Apple is too often in catch-up mode. But when they do come around, they usually do it better and advance features in superior ways. That said, not all the time. Notifications and the pesky small ‘X’. Clear all, clear one by one would be an improvement.
More and more are seeing what I see – the once great company in serious decline (as in, nothing ahead to really inspire the consumer) and the guy in charge MUST be accountable. It doesn’t matter the rationale, the reality demands change.
Jay, as you’ve got your head shoved up your own anus as far as your neck, there’s only one thing that, logically speaking, you CAN see…
@Ronschach
How old are you? Seriously. 14, with a big chip on your shoulder?
No, Wall Street only sees that it is more and more difficult for them to make money on what used to be a sure bet to increase in value – AAPL. The fact is that without market manipulation and incessant demands for Apple to first pay then increase its dividend, that stockbrokers and hedge fund managers were clueless as to how to make money on AAPL. They couldn’t predict it anymore, so they had to scream and yell for something to change.
And Apple caved. That’s the sad part. I would rather have seen Apple tell Wall Street to screw itself and buy back all of its stock than have it capitulate to Wall Street as it has.
Tying compensations for Apple executives to past performance is what most companies, that respect themselves, should do.
The question is how performance should be measured. I.e., stock performance vs. quarterly gains. IMHO TC should have gone for the latter.
Agreed. Stock performance is too easily manipulated by Wall Street and is not something in Tim Cook’s or Apple’s control Quarterly performance is definitely under TC’s and Apple’s control.
You guys have lambasted me in the past for saying it as an Apple fan, but now everyone can clearly see “TIM COOK MUST GO!”
He’s simply not qualified, not innovative, has zero presence or personality, or just simply is not the right person to run Apple… unless of course running Apple means running it right into the ground from 20,000 feet!
You can take your pick from the choices above, if it will help to soothe your naysayer conscious.
The only thing people are complaining about Tim Cook’s “personality” is his on stage performance. So he’s not as charismatic as Steve Jobs.
Maybe Apple should just keep Cook as an MC in a more reduced role and let Craig F. take on the bulk of product introductions. He was fantastic! Let Phil Schiller do more. Let Jony Ive on stage (I doubt he wants to be on stage, as his comments are always taped, but I think he would be good too).
Not every CEO needs to be on stage making the crowd swoon. I would certainly think Microsoft would be better without Ballmer ever taking the stage again, even if he was still CEO.
Please, don’t take our Balmer away. He’s so much fun!
Rocco the truth teller. iOS 7 sucks donkey balls. Apple is a failure.
Then go Android, or Windows 8. Enjoy!
Thanks for more of the brown dribbling stuff “Welcome to the Suck”. I used to think that idiots like you were merely trolls with too much time on your hands. Now I realise you are actually paid to trawl Apple forums and spew your anti-Apple tirades. Pathetic Samsung, et
The whole propaganda tries to remove Tim Cook from left to right. Perhaps there is a guy in Apple headquarter who is next to Tim’s office is interested to replace on Cook’s chair. therefore he runs the whole scheme up and down, left to right from WS, media, analyst, the list goes on and on.
He wants Tim Cook’s chair? The “whole propaganda”? Left to right? hmmmmmmmmm………… say listen, are you going to be interviewed by George Nouri on Coast to Coast tonight by any chance? I don’t want to miss that one!
Was there some kind of retard furlough I wasn’t aware of? Where are these comments about ousting Cook coming from (aside from the individual ass chambers of the commenters)?
First of all, it’s thestreet.com. Calling that fishwrap a rag is being very charitable. Second, it’s Rocco “One Note” Pendola. Contrary to all evidence, this asshat keeps calling for Cook’s head, regardless of the number of mega quarters Cook and Apple continue to rack up.
People knocking his presence/personality need to get a fucking grip. At the end of the day, if you think the value of a CEO has fuckall to do with their presentation style, you clearly have no idea what a CEO does. People who knock his “innovation” clearly have no idea how Apple works, as the “innovation” doesn’t originate in the CEO’s office.
When Apple come *close* to failing – in a metric that matters (i.e. not stock price) – commence wailing. You people calling for his ouster are trolling, stupid or out of your minds.
I blame Obama!
Well somebody was bound to say it on this bloody site! lol
At least we all agree that no matter what Apple does, the share price will continue to drop as long as Apple’s share price isn’t tied to its fundamentals. It’s just Apple shareholders bad luck.