Jobs' Salary Examined, Again

by , 10:00 AM EST, March 22nd, 2002

Apple CEO Steve Jobs takes home $1 a year for the work he does at Apple, and has done so since his coup d'etat in 1997. Being CEO of Apple has other perks, though, and the jet isn't the only one. According to a C/NET article, titled Options add to Jobs' $1 salary, our favorite CEO got about $7.5 million in stock options last year, among other niceties. From the article:

The salary details come as Apple disclosed that its shipments of the new iMac will be less than analysts' forecasts, and as the Mac maker announced plans to increase prices on the computer.

Jobs' options carry an exercise price of $18.30. Given that the shares are trading at about $5 above that price, the options would have a value of more than $37 million if all could be cashed in today.

However, only 25 percent of the options are exercisable, with the remainder vesting annually over the next three years.

The article goes on to list the take-home pay of Apple's other top execs.

The Mac Observer Spin:

In our never humble opininion, Steve Jobs is entitled to every penny he makes at Apple. This is especially true considering that what money he has made from Apple has been exclusively in the form of stock options. If the stock doesn't perform, Mr. Jobs makes nothing. If he brings value to the stock holder, he also profits. Seems like a fair arrangement.

In the past, many Observers have sprung forth to denounce Mr. Jobs' stock options as being excessive. This was particularly true concerning Mr. Jobs' first stock option package when the company's stock was soaring at US$75 per share (after the split). Those options are still worthless, as they were granted at a price just under US$50 per share, but the newest options reflect Apple's current stock price.

Again, Mr. Jobs has earned every penny. There may be some controversey in light of Apple's current quarter, but one quarter does not a CEO make. The way the US markets are set up has made many investors and analysts forget this simple principle, but that doesn't make it any less true.

Options add to Jobs' $1 salary