Apple rewards finance chief with $69M pay in 2012, highest of any CFO

Posted:
in AAPL Investors edited January 2014
Apple Chief Financial Officer Peter Oppenheimer was the highest paid among all CFOs in 2012, as the Cupertino company rewarded him immensely for its financial performance.

iMacs


Oppenheimer, under whose watch Apple's cash pile grew to roughly $120 billion in 2012, saw a compensation package of $68.6 million for the year, according to data compiled by Bloomberg. That figure is more than 16 times Apple CEO Tim Cook's compensation for the year.

Stock grants issued to retain top executive talent comprised almost the whole of Oppenheimer's pay for the year, which was the fifth-highest among all S&P 500 executives, including CEOs.The $68.6 million figure far outstripped the $51.7 million earned by tech's next-highest compensated CFO, Oracle's Safra Catz. Google's Patrick Pichette was No. 3 at $38.7 million.

Oppenheimer's financial stewardship has allowed Apple to amass cash holdings in excess of many companies' yearly earnings. By keeping two-thirds of Apple's holdings outside the United States, Oppenheimer saved the company billions in corporate tax payments.

Apple's financial chief also architected the company's recent bond offering, which will allow it to avoid $9.2 billion in taxes by borrowing against its cash position instead of repatriating its overseas holdings. The debt Apple takes on will allow it to fund its $100 billion capital return program, which is at least partially credited with putting a bottom under Apple stock after it briefly dipped below $400 in April.

Oppenheimer assumed the CFO role in 2004, having previously served as corporate controller and vice president and worldwide sales controller.
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Comments

  • Reply 1 of 37
    decondodecondo Posts: 21member
    Ridiculous
  • Reply 2 of 37
    middleguymiddleguy Posts: 26member


    The another moral hazard case. Apple should be ashamed. image

  • Reply 3 of 37
    richlrichl Posts: 2,213member
    Larry Ellison would be proud.
  • Reply 4 of 37


    I'm sure the above commenters NEVER use any of the tax breaks that are available to them. "$1,500 tax break for my children!? Forget it, I don't need no stinking tax break! I'll pay the full amount!". Apple has saved billions in taxes and this CFO has done an excellent job.

  • Reply 5 of 37
    anantksundaramanantksundaram Posts: 20,348member


    That is not pay for performance.


     


    For 2012, the guy deserved a pay cut.

  • Reply 6 of 37
    slurpyslurpy Posts: 5,355member

    Quote:

    Originally Posted by decondo View Post



    Ridiculous


     


    Quote:

    Originally Posted by MiddleGuy View Post


    The another moral hazard case. Apple should be ashamed. image



     


    It's only "ridiculous" if you try to tie in someone's salary with what they "deserve", whatever the hell that means. That's never been the case, and never will be. Apple pyas him according to what they're willing to pay him to KEEP him, and also according to the financial benefits he afford the company (tax breaks, etc) which numbers in the billions of dollars. It's simply a math equation, and if you look at it that way, what they're paying him is a "steal" compared to what he's making them. He's considered one of the best CFOs in the world. and since he's been with Apple for so long and knows their operations intimately, it's in Apple's best interest to make sure he goes nowhere else. I'm sure there's a shitload of other companies who would love to have him, and clearly Apple wants to keep him happy. 


     


    That being said, is $69million in salary ludicrous for any one individual? Of course it is. Do I blame Apple for paying him that much, or him for accepting it? No, because I understand the dynamics of the situation. 

  • Reply 7 of 37
    ash471ash471 Posts: 705member


    I'm very disappointed.  With Steve gone, the executives at Apple are going to do what all executives at large corporation do: abuse the system because they can.  What a dirt bag.  $69 M a year for a CFO.  There are thousands of talented people out there that could do just as good of job at CFO and they would do it for $1M/year.

  • Reply 8 of 37
    ash471ash471 Posts: 705member

    Quote:

    Originally Posted by Slurpy View Post


     


     


    It's only "ridiculous" if you try to tie in someone's salary with what they "deserve", whatever the hell that means. That's never been the case, and never will be. Apple pyas him according to what they're willing to pay him to KEEP him, and also according to the financial benefits he afford the company (tax breaks, etc) which numbers in the billions of dollars. It's simply a math equation, and if you look at it that way, what they're paying him is a "steal" compared to what he's making them. He's considered one of the best CFOs in the world. and since he's been with Apple for so long and knows their operations intimately, it's in Apple's best interest to make sure he goes nowhere else. I'm sure there's a shitload of other companies who would love to have him, and clearly Apple wants to keep him happy. 


     


    That being said, is $69million in salary ludicrous for any one individual? Of course it is. Do I blame Apple for paying him that much, or him for accepting it? No, because I understand the dynamics of the situation. 



    Why keep him?  Seriously.  The only reason these guys get paid that much is because a culture of back scratchers on boards allow it to happen.  The problem is shareholders have allowed the culture to develop.  Unwinding it will be hard to do.  Shareholders need to start somewhere.  Cut his pay to 6.9 million and see if he walks.  I assure you he is replaceable with probably even better talent for pay in the 2-10 million range.

  • Reply 9 of 37
    aamais88aamais88 Posts: 4member

    Quote:

    Originally Posted by ash471 View Post


      Cut his pay to 6.9 million and see if he walks



    Last I checked, his base salary was less than $900k.  Like the article says "stock grants issued to retain top executive talent comprised almost the whole of Oppenheimer's pay for the year" The guy would be an idiot to turn down about 150k shares of Apple for incentive to stay and continue to do his job well.

  • Reply 10 of 37
    realisticrealistic Posts: 1,154member

    Quote:

    Originally Posted by ash471 View Post


    I'm very disappointed.  With Steve gone, the executives at Apple are going to do what all executives at large corporation do: abuse the system because they can.  What a dirt bag.  $69 M a year for a CFO.  There are thousands of talented people out there that could do just as good of job at CFO and they would do it for $1M/year.



    And obviously you are not one of them. Thank God!

  • Reply 11 of 37
    ericblrericblr Posts: 172member
    ash471 wrote: »
    Why keep him?  Seriously.  The only reason these guys get paid that much is because a culture of back scratchers on boards allow it to happen.  The problem is shareholders have allowed the culture to develop.  Unwinding it will be hard to do.  Shareholders need to start somewhere.  Cut his pay to 6.9 million and see if he walks.  I assure you he is replaceable with probably even better talent for pay in the 2-10 million range.

    Armchair "experts"... gotta love 'em!
  • Reply 12 of 37
    kpluckkpluck Posts: 500member

    Quote:

    Originally Posted by ash471 View Post


    There are thousands of talented people out there that could do just as good of job at CFO and they would do it for $1M/year.



     


    Instead of spending time being jealous what other people make, why don't you take that misplaced energy and aim it at improving your own situation.


     


    -kpluck

  • Reply 13 of 37


    Until and unless the naysayers are able to prove how much more suitable they are to take this person's position, at a much lower salary (plus benefits,) then they should really keep to themselves. This guy has done an amazing job at saving the company ridiculous amounts of money. What they're offering him to keep him there is chump change in the scheme of things. Plus, the majority of that compensation appears to be stock; it's not like he's getting a check for $5,750,000 each month.

  • Reply 14 of 37


    Only one word: obscene... Hope he soon leaves. Unethical Douchebag... I am sorry for the strong word

  • Reply 15 of 37
  • Reply 16 of 37
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by decondo View Post

    Ridiculous


     


    Okay. You do better.





    Originally Posted by ash471 View Post

    With Steve gone, the executives at Apple are going to do what all executives at large corporation do: abuse the system because they can.


     


    Prove it.






    There are thousands of talented people out there that could do just as good of job at CFO and they would do it for $1M/year.



     


    Okay. You do better.





    Originally Posted by ash471 View Post

    The only reason these guys get paid that much is because a culture of back scratchers on boards allow it to happen.


     


    Prove it.






    Cut his pay to 6.9 million and see if he walks.



     


    Why do you think you get to decide this? Maybe your pay should be cut to 20,000 a year. Notice I haven't specified a currency yet. I'll get to that once I've determined your worth.





    Originally Posted by osewisewose View Post

    Only one word: obscene...


     


    Prove it.






    Unethical Douchebag... I am sorry for the strong word



     


    No, you're not. You're not intelligent enough to have an actual argument, so I'm not surprised you're not sorry for what your ignorance has borne.

  • Reply 17 of 37
    thepixeldocthepixeldoc Posts: 2,257member
    A lot of anti-capitalists and anarchists in this thread... just sayin'....!
  • Reply 18 of 37
    crowleycrowley Posts: 10,353member
    .
    Prove it.

    Prove it.

    Prove it.
    Where's the evidence that Oppenheimer is worth $69m to the company, what value did he bring last year that is over and beyond what any other more modestly paid CFO could have brought?

    You prove it.
  • Reply 19 of 37
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by Crowley View Post

    You prove it.


     


    Okay, you can't. Thanks.

  • Reply 20 of 37
    ericblrericblr Posts: 172member
    crowley wrote: »
    Where's the evidence that Oppenheimer is worth $69m to the company, what value did he bring last year that is over and beyond what any other more modestly paid CFO could have brought?

    You prove it.

    The burden of proof is on the accuser.
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