Nothing impressive me less than India's cap on salaries and his listing of only $50k per year as a founder of a multi-billion dollar corporation. I'd be more impressed if it said $1 or actual compensation, but it's clear he's got his money like most Hindus--filtered out over many areas to keep below their tax ceiling.
A services company known as a head shop to professional consultants in the US is the last place Apple will draw from when looking for a board member.
Apple will not go abroad for it's board.
They will draw from within blue chip companies domestically. I'm surprised no mention of Disney's CEO, Robert Iger.
You know nothing about their tax system in India, If you did you would know that 50K puts you in higher tax bracket. You need to be earning less than ~22K to stay out of that high tax bracket. Please before you write anything about a country outside your own get your facts right and not from your tabloid coverage from your living room.
I just hope that whoever they choose will help push them to clean up Apple Japan; it's a mess and their sales here could be much better than they are (which would benefit stockholders of which I am not). Sadly, I think recent moves (sloppy, at best) by Apple Japan will only reduce sales for some time to come and ultimately look bad for Apple as a whole.
That's not true. Boards of directors are often composed of people from the very company on whose board they sit.
That's correct. However, the best governance model which protects shareholders interests is a board which has a combination of executive and non-executive directors. Best practice usually has non-executive's comprising the majority.
You know nothing about their tax system in India, If you did you would know that 50K puts you in higher tax bracket. You need to be earning less than ~22K to stay out of that high tax bracket. Please before you write anything about a country outside your own get your facts right and not from your tabloid coverage from your living room.
Last time I checked 300,000 Rubies was a cap. With 50% of your salary going to straight taxes many a person of affluence distributes their wealth amongst various relatives to surpass that ceiling. Several Hindu friends are my sources of information.
Amazingly, his taxable income falls just below him getting taxed more heavily:
* From now onwards there will be only 2 pages in the IT filing form for individuals.
* More cases can now be appealed against.
* Rs. 20,000 tax exemption will be provided for investments in certain investment bonds. This is in addition to the already allowed exemption (Rs. 1,00,000) in certain savings instruments.
* Tax Exemption will be given for contribution to the Central Government Health Scheme (CGHS).
* New fields have been added to the e-TDS/TCS form. These new fields are Ministry name; PAO / DDO code; PAO / DDO registration no.; State name; and Name of the utility used for return preparation.
Just like in America, you funnel your assets to your next of kin and your investments to keep yourself from having to pay more of your wealth, that one has mainly accumulated from the system designed to gain fractions of a % from everyone in labor under them.
That's not true. Boards of directors are often composed of people from the very company on whose board they sit.
Exactly, which is why corporate governance is so shoddy these days.
The board is the board and management is management.
Also, Tim Cook is overrated. He is superbly competent as an operations guy, but he is not a product guy at all. He simply lacks the background or, frankly, the interest. He kept using a Blackberry long after the iPhone came out. He is all about efficiency, not elegance or aesthetic.
Steve Job's role was never to keep the trains running on time, which is what Cook does. If he is gone, the hole that has to be filled is completely different; it's the guy who sees five years ahead. It's also the guy willing to pay extra for the best engineering talent. That simply is not Cook.
I see no successor right now. If there was one, Jobs would lock horns with the guy over a disagreement about some pixel somewhere, and fire him. This may already have happened for all we know.
The succession is definitely a non-trivial problem.
So upon first reading this sounded like a bad idea. I work daily with Wipro, an Infosys competitor, and the mindset could not be further from what I think of as Apple core values.
Narayana does have a good speech though. Literally, as I just read his NYU speech and I thought it was both insightful and carefully thought out.
But still, as much as I want Apple to be more responsive to global needs and I respect Narayana, I don't want Apple to outsource talent. It's already bad enough that all manufacturing is outsourced to China.
Narayana would likely push for further outsourcing, and of engineering. But Apple engineering and design would suffer greatly as a result. Not because I think there are no Indians with equivalent talent, but because you would be breaking up consolidated engineering teams that currently exist, wasting precious years in useless turmoil, stress, and cultural adjustments.
That's correct. However, the best governance model which protects shareholders interests is a board which has a combination of executive and non-executive directors. Best practice usually has non-executive's comprising the majority.
Agreed. Confer a substantial amount of restricted stock on one or two top managers and make them board members. Wealth generation through ownership influences management behavior. It emphasizes the primacy of shareholder interests in aligning the operational strategy and direction of the business.
Exactly, which is why corporate governance is so shoddy these days.
The board is the board and management is management.
Also, Tim Cook is overrated. He is superbly competent as an operations guy, but he is not a product guy at all. He simply lacks the background or, frankly, the interest. He kept using a Blackberry long after the iPhone came out. He is all about efficiency, not elegance or aesthetic.
Steve Job's role was never to keep the trains running on time, which is what Cook does. If he is gone, the hole that has to be filled is completely different; it's the guy who sees five years ahead. It's also the guy willing to pay extra for the best engineering talent. That simply is not Cook.
I see no successor right now. If there was one, Jobs would lock horns with the guy over a disagreement about some pixel somewhere, and fire him. This may already have happened for all we know.
The succession is definitely a non-trivial problem.
Outstanding post there! Very insightful. I agree with your assessments 100%.
Narayana does have a good speech though. Literally, as I just read his NYU speech and I thought it was both insightful and carefully thought out...... I respect Narayana, I don't want Apple to outsource talent. It's already bad enough that all manufacturing is outsourced to China.......Narayana would likely push for further outsourcing, and of engineering.......
This I do not agree with at all. If you think the guy is just about a good speech and outsourcing, that's a bit of a shallow assessment.
Also, in what way is Apple's outsourcing to China 'bad enough?' Just because you dislike outsourcing, or because you think the quality is poor? If the former, you need to think about why outsourcing happens. If the latter, which Apple product do you think suffers from inferior quality because it is manufactured in China?
Also, do you have any valid data to show that production in places such as the US is uniformly better? (For example, Toyota's much-vaunted problems recently were from parts manufactured in the US, by a US company).
This I do not agree with at all. If you think the guy is just about a good speech and outsourcing, that's a bit of a shallow assessment.
...
Also, do you have any valid data to show that production in places such as the US is uniformly better? (For example, Toyota's much-vaunted problems recently were from parts manufactured in the US, by a US company).
So, first of all, the guy is certainly about outsourcing. This is what Infosys does, and what he dedicated his career to. Now, there is nothing wrong with that, as far as Infosys goes. If they found a market for their services, more power to them.
But I don't think it's a good model for Apple.
The second issue, about China, has nothing to do with quality. I did not mention quality, did I? Why are you assuming? There are plenty of other criteria:
1. Chinese labor conditions with workers who have little legal protection. Need I remind you that unlike India, China is a police state run by an authoritarian regime? I don't want my dollars feeding that.
2. Chinese energy sources are dirty, and since air freight is typically used due to time to market issues, the carbon footprint of products made there is higher than it would be otherwise.
3. Besides CO2, Chinese environmental controls are lax to say the least, since there is little public accountability, so solvents and other toxic chemicals used in manufacture are dumped into rivers or leach into ground water. I don't want my dollars doing that, either.
4. China is manipulating its currency and that is costing jobs not just in the US, but also in Europe, Japan, and Korea. Anywhere, in fact, where salaries allow a decent standard of living.
I am all for India making progress. It is a democracy and a big one. It has a fascinating culture, wonderful food, and some really top talent (and also, like everywhere, plenty of mediocre talent too).
But I'd rather its top talent came up with its own Apples. I think Tata is a far more interesting company than Infosys, for example.
Don't get me wrong. I respect Infosys, but sort of in the way I respect Dell; not for creativity, but for the able building of a large company from scratch, led by its founder.
To illustrate my point, I would not put Michael Dell on Apple's board either.
Comments
is
TED TURNER: http://en.wikipedia.org/wiki/Ted_Turner
Ted's talking of late about buying out CNN and cleaning house.
He's a proven winner.
Also, Board of Directors are supposed to have independence from the company. Cook's financial ties would compromise that independence.
That's not true. Boards of directors are often composed of people from the very company on whose board they sit.
Nothing impressive me less than India's cap on salaries and his listing of only $50k per year as a founder of a multi-billion dollar corporation. I'd be more impressed if it said $1 or actual compensation, but it's clear he's got his money like most Hindus--filtered out over many areas to keep below their tax ceiling.
A services company known as a head shop to professional consultants in the US is the last place Apple will draw from when looking for a board member.
Apple will not go abroad for it's board.
They will draw from within blue chip companies domestically. I'm surprised no mention of Disney's CEO, Robert Iger.
You know nothing about their tax system in India, If you did you would know that 50K puts you in higher tax bracket. You need to be earning less than ~22K to stay out of that high tax bracket. Please before you write anything about a country outside your own get your facts right and not from your tabloid coverage from your living room.
That's not true. Boards of directors are often composed of people from the very company on whose board they sit.
That's correct. However, the best governance model which protects shareholders interests is a board which has a combination of executive and non-executive directors. Best practice usually has non-executive's comprising the majority.
You know nothing about their tax system in India, If you did you would know that 50K puts you in higher tax bracket. You need to be earning less than ~22K to stay out of that high tax bracket. Please before you write anything about a country outside your own get your facts right and not from your tabloid coverage from your living room.
Last time I checked 300,000 Rubies was a cap. With 50% of your salary going to straight taxes many a person of affluence distributes their wealth amongst various relatives to surpass that ceiling. Several Hindu friends are my sources of information.
$50,000 USD == 2,212,500.00 INR
Tax brackets for India: http://finance.indiamart.com/taxatio...tax/rates.html
Amazingly, his taxable income falls just below him getting taxed more heavily:
* From now onwards there will be only 2 pages in the IT filing form for individuals.
* More cases can now be appealed against.
* Rs. 20,000 tax exemption will be provided for investments in certain investment bonds. This is in addition to the already allowed exemption (Rs. 1,00,000) in certain savings instruments.
* Tax Exemption will be given for contribution to the Central Government Health Scheme (CGHS).
* New fields have been added to the e-TDS/TCS form. These new fields are Ministry name; PAO / DDO code; PAO / DDO registration no.; State name; and Name of the utility used for return preparation.
Just like in America, you funnel your assets to your next of kin and your investments to keep yourself from having to pay more of your wealth, that one has mainly accumulated from the system designed to gain fractions of a % from everyone in labor under them.
It's just life.
That's not true. Boards of directors are often composed of people from the very company on whose board they sit.
Exactly, which is why corporate governance is so shoddy these days.
The board is the board and management is management.
Also, Tim Cook is overrated. He is superbly competent as an operations guy, but he is not a product guy at all. He simply lacks the background or, frankly, the interest. He kept using a Blackberry long after the iPhone came out. He is all about efficiency, not elegance or aesthetic.
Steve Job's role was never to keep the trains running on time, which is what Cook does. If he is gone, the hole that has to be filled is completely different; it's the guy who sees five years ahead. It's also the guy willing to pay extra for the best engineering talent. That simply is not Cook.
I see no successor right now. If there was one, Jobs would lock horns with the guy over a disagreement about some pixel somewhere, and fire him. This may already have happened for all we know.
The succession is definitely a non-trivial problem.
Elon Musk
At least from the people mentioned here, Musk is the most interesting choice for the board, on multiple grounds.
First piece of advice, fwiw: stay away from the US hardware/software industry.
Second piece of advice, fwiw: You are a global company. Put a non-US person on the Board. Send a signal. (My recommendation: Narayana Murthy; http://en.wikipedia.org/wiki/N._R._Narayana_Murthy).
So upon first reading this sounded like a bad idea. I work daily with Wipro, an Infosys competitor, and the mindset could not be further from what I think of as Apple core values.
Narayana does have a good speech though. Literally, as I just read his NYU speech and I thought it was both insightful and carefully thought out.
But still, as much as I want Apple to be more responsive to global needs and I respect Narayana, I don't want Apple to outsource talent. It's already bad enough that all manufacturing is outsourced to China.
Narayana would likely push for further outsourcing, and of engineering. But Apple engineering and design would suffer greatly as a result. Not because I think there are no Indians with equivalent talent, but because you would be breaking up consolidated engineering teams that currently exist, wasting precious years in useless turmoil, stress, and cultural adjustments.
That's correct. However, the best governance model which protects shareholders interests is a board which has a combination of executive and non-executive directors. Best practice usually has non-executive's comprising the majority.
Agreed. Confer a substantial amount of restricted stock on one or two top managers and make them board members. Wealth generation through ownership influences management behavior. It emphasizes the primacy of shareholder interests in aligning the operational strategy and direction of the business.
Exactly, which is why corporate governance is so shoddy these days.
The board is the board and management is management.
Also, Tim Cook is overrated. He is superbly competent as an operations guy, but he is not a product guy at all. He simply lacks the background or, frankly, the interest. He kept using a Blackberry long after the iPhone came out. He is all about efficiency, not elegance or aesthetic.
Steve Job's role was never to keep the trains running on time, which is what Cook does. If he is gone, the hole that has to be filled is completely different; it's the guy who sees five years ahead. It's also the guy willing to pay extra for the best engineering talent. That simply is not Cook.
I see no successor right now. If there was one, Jobs would lock horns with the guy over a disagreement about some pixel somewhere, and fire him. This may already have happened for all we know.
The succession is definitely a non-trivial problem.
Outstanding post there! Very insightful. I agree with your assessments 100%.
Narayana does have a good speech though. Literally, as I just read his NYU speech and I thought it was both insightful and carefully thought out...... I respect Narayana, I don't want Apple to outsource talent. It's already bad enough that all manufacturing is outsourced to China.......Narayana would likely push for further outsourcing, and of engineering.......
This I do not agree with at all. If you think the guy is just about a good speech and outsourcing, that's a bit of a shallow assessment.
Also, in what way is Apple's outsourcing to China 'bad enough?' Just because you dislike outsourcing, or because you think the quality is poor? If the former, you need to think about why outsourcing happens. If the latter, which Apple product do you think suffers from inferior quality because it is manufactured in China?
Also, do you have any valid data to show that production in places such as the US is uniformly better? (For example, Toyota's much-vaunted problems recently were from parts manufactured in the US, by a US company).
ME!
I nominate.....
ME!
The nomination is...... rejected.
This I do not agree with at all. If you think the guy is just about a good speech and outsourcing, that's a bit of a shallow assessment.
...
Also, do you have any valid data to show that production in places such as the US is uniformly better? (For example, Toyota's much-vaunted problems recently were from parts manufactured in the US, by a US company).
So, first of all, the guy is certainly about outsourcing. This is what Infosys does, and what he dedicated his career to. Now, there is nothing wrong with that, as far as Infosys goes. If they found a market for their services, more power to them.
But I don't think it's a good model for Apple.
The second issue, about China, has nothing to do with quality. I did not mention quality, did I? Why are you assuming? There are plenty of other criteria:
1. Chinese labor conditions with workers who have little legal protection. Need I remind you that unlike India, China is a police state run by an authoritarian regime? I don't want my dollars feeding that.
2. Chinese energy sources are dirty, and since air freight is typically used due to time to market issues, the carbon footprint of products made there is higher than it would be otherwise.
3. Besides CO2, Chinese environmental controls are lax to say the least, since there is little public accountability, so solvents and other toxic chemicals used in manufacture are dumped into rivers or leach into ground water. I don't want my dollars doing that, either.
4. China is manipulating its currency and that is costing jobs not just in the US, but also in Europe, Japan, and Korea. Anywhere, in fact, where salaries allow a decent standard of living.
I am all for India making progress. It is a democracy and a big one. It has a fascinating culture, wonderful food, and some really top talent (and also, like everywhere, plenty of mediocre talent too).
But I'd rather its top talent came up with its own Apples. I think Tata is a far more interesting company than Infosys, for example.
Don't get me wrong. I respect Infosys, but sort of in the way I respect Dell; not for creativity, but for the able building of a large company from scratch, led by its founder.
To illustrate my point, I would not put Michael Dell on Apple's board either.