Steve Jobs is highest paid executive...
...despite receiving no salary.
Just a big fat bonus of $43,511,534.
Pocket money. :eek:
<a href="http://www.erieri.com/index.cfm?FuseAction=NewsRoom.Dsp_Release&PressRel easeID=78" target="_blank">Link</a>.
Just a big fat bonus of $43,511,534.
Pocket money. :eek:
<a href="http://www.erieri.com/index.cfm?FuseAction=NewsRoom.Dsp_Release&PressRel easeID=78" target="_blank">Link</a>.
Comments
<strong>Jobs is underpaid.</strong><hr></blockquote>
Oh yeah, definately <img src="graemlins/bugeye.gif" border="0" alt="[Skeptical]" />
Not as bad as giving Jobs that fscking Gulfstream jet, though. That was a real low point in the board of directors' judgement.
<strong>...despite receiving no salary.
Just a big fat bonus of $43,511,534.</strong><hr></blockquote>I wouldn't be surprised if that's more than Apple's 2002 net profit.
<strong>I wouldn't be surprised if that's more than Apple's 2002 net profit.</strong><hr></blockquote>
Apple's profit for the first three quarters was $110 million.
<strong>
Apple's profit for the first three quarters was $110 million.</strong><hr></blockquote>Yeah, I just went back and looked and you're right. They've made around 40 million proft per quarter on average.
So that means his salary was the same amount as about three months of the company's total profits. Hmmm...
<strong>Steve Jobs decided to be paid one dollar a year. He's been only being paid $1 for about 2 years now.</strong><hr></blockquote>
I'd be thrilled to be paid $1 a year. If I got a $43,511,534 bonus at Christmas.
It's so typically American to pay some executive over 100 times the pay of the average worker at a company. All this does is sow resentment and feelings of inequality...and of course it goes towards making executives more arrogant, greedy, and corrupt.
Assuming that the average Apple employee has an annual salary of $100,000 (LOL!), this makes Jobs' salary of $43,511,534 435 fold greater than this average.
Of course for capitalism to work, there must be incentive to work harder, more creatively, and more efficiently. Executives deserve to get paid more than the average worker at a company. But 435 fold more? What makes Steve Jobs 435 times more valuable than the "average" Apple employee? What makes him 435 times a better human? What makes his thoughts 435 times more valuable?
Very little, IMO. His pay is so far out of touch with the reality of the average Apple employee that they don't even see him as being payed, or rewarded, on the same scale that they are. The average employee has promotions, raises, and bonuses to look forward to, but no matter what sort of work they do they will never even approach the pay of Steve Jobs. That's because Jobs' pay isn't about his work, it's about his social caste.
Executive pay in America is about concrete social castes. It's about sustaining the upper class's insulation from the upper middle class. it's about maintaining a culture. Executive pay has NOTHING to do with the amount or quality of work, witness the fat paychecks and bonuses of executives who have run their businesses into the ground for proof. Example: George Dubya Bush mismanaged his businesses to become a millionaire--and he never could have done this without being born into an upper class family. It always comes back to that social caste system in America.
I'll give Steve Jobs this much: He didn't come from an upper class family as far as I know. He is one of the lucky few who have leap-frogged up in class, up to the upper class caste. He deserves credit for this, but still he's overpaid and there's no excuses.
Very well put.
(I'm beginning to wonder if this thread will meander into Fireside Chat material now...)
Great. Can I have some? I'd love to earn my salary to do C average work and get a fat benny every time I do better! Or how about a generous kickback to the guy who works late at Wal-Mart all week getting the warehouse catalogued and ship-shape? But somehow, the carrots only grow in the loftiest places, and by the time you're down low it's all sticks, or indifference.
JYD is dead-on in that nobody is worth as much as the top CEOs are getting paid, and he's also right that the ratio between executive compensation and worker compensation ceased to be reasonable some 15 or 20 years ago.
But there's more: the method of compensation is also wrong. I get the same pay no matter how many hours I put in - unless it's less than 32/week - and no matter how well I do. If, under that arrangement, I can pull late-nighters when necessary and do work that I'm proud of - not work that's merely adequate - then the executives can do the same thing under the same arrangement, even if they're only making, oh, ten times more than I am (which would be peanuts for an executive salary these days). On the other hand, if they really believe that big incentives increase productivity, then why haven't they deployed this great idea on the assembly lines?
There's too much political economy, and not enough good sense. <img src="graemlins/bugeye.gif" border="0" alt="[Skeptical]" />
And yes, this is straying quickly into FC territory.
[ 09-26-2002: Message edited by: Amorph ]</p>
I would say that Steve Jobs IS worth 450 times what an average Apple employee makes based on supply and demand and what he is contributing to the company.
From a moral standpoint it is totally different. I don't approve of sheer greed. This is a totally separate argument. I am just arguing that Steve does contribute an amazing amount of value to Apple.
Look at the CEOs before Jobs that failed to deliver a modern operating system and failed to bring down the prices of hardware by making a universal motherboard. Powermacs used to cost like $6000 at the high end and when the iMac came out at $1299 it was dramatically cheaper than the rest of the lineup.
You might wonder how Jobs can make $40m when they are only making $40m per quarter. But without Jobs they would probably be losing $200 million a quarter.
Steve is the magic that can take all the ideas at Apple and put them into a coherent vision. From the design of the Apple Stores to the look of the computers to Apple's Switch commercials, Jobs makes magic happen.
Programmers and engineers make a lot of money anyway. It more bothers me when someone like Lee Iococca makes $80 million dollars when that money could be going to hard working assembly line workers.
I think the 45,000,000 is just compensation for this man. He puts a lot back into the company anyway. Steve actually would have more money than this from Apple if he hadnt sold his stock in the company shortly after he left Apple in 1985. Jobs sold all this stock in Apple which was then worth around 80,000,000, if he had not sold so soon it would have been worth much more.
The fact is Jobs' salary isnt causing Apple to not be able to operate effectively. Apple is doing fine and not doing anything illegal (as far as we know) when it comes to its executive salary payments and bonuses. IMHO Jobs is worth every penny.
Hey, did you know Alex Rodriguez is being payed
250,000,000 to play baseball?
[ 09-26-2002: Message edited by: MafiaMac ]</p>
He earns every penny of that.
<strong>Agree with Mafiamac.
He earns every penny of that.
1. He started the company in 1976.
2. He persuaded Woz to make money out of his obsession.
3. He lead the Macintosh team in the right direction.
4. He was fired from the company in 1985 and came back in 1996.
5. He helped to save Apple from failure with the introduction of the iMac.
6. 6 Million units later and 5 years the iMac is the best selling PC of all time.
7. He turned Apple's fortunes around in the biggest corporate comeback in history.
8. HE WORKS TWO JOBS.
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If Steve doesnt deserve that kind of money I dont know who does. He is a pioneer in business with a vision for the future.
[ 09-26-2002: Message edited by: MafiaMac ]
[ 09-26-2002: Message edited by: MafiaMac ]</p>
JunkYardDawg, do you know what you are talking about? Steve Jobs definately did not come from a rich family, in fact, he was adopted.<hr></blockquote>
Now that you say that, I seem to remember reading about him being adopted somewhere. But yes, I did note that Jobs did NOT come from an upper class family.
[quote]I think the 45,000,000 is just compensation for this man. He puts a lot back into the company anyway. Steve actually would have more money than this from Apple if he hadnt sold his stock in the company shortly after he left Apple in 1985. Jobs sold all this stock in Apple which was then worth around 80,000,000, if he had not sold so soon it would have been worth much more. <hr></blockquote>
Well he would have HAD more money. The idea of anyone being WORTH some monetary value is pretty ridiculous if you ask me.
[quote]The fact is Jobs' salary isnt causing Apple to not be able to operate effectively. Apple is doing fine and not doing anything illegal (as far as we know) when it comes to its executive salary payments and bonuses. IMHO Jobs is worth every penny. <hr></blockquote>
Whoa, I never said that Jobs' salary was causing Apple to operate ineffectively, and I sure as hell didn't accuse Apple management of doing anything illegal. However, if every Apple executive limited their pay to no more than 20 fold more than the average Apple employee's salary, then it would no doubt have a positive impact on the company. Worker moral would rise, more money would be available for merit-based bonuses, and perhaps there would be more money for R&D. As for Jobs being worth every penny of his compensation...you know my opinion based on my first post. We'll have to agree to disagree because this topic is far too involved to discuss in a thread at AI.
He BETTER not use the money to buy intel's PCs secretly!!!!