TMO Reports - Jobs Gets No 2003 Bonus; Stage Set For Shareholders Meeting

by , 4:30 PM EST, March 11th, 2004

Apple Computer Chief Executive Steve Jobs received no bonus for 2003, and again took home a salary of US$1, as he has since 2001, according to a proxy statement filed Thursday with the U.S. Securities and Exchange Commission.

According to the filing, Mr. Jobs received a restricted stock award of five million shares last March, valued at nearly US$75 million. Mr. Jobs received the restricted stock after voluntarily canceling all of his outstanding stock options.

Mr. Jobs had received options for 7.5 million shares in 2002. No stock options were granted to Mr. Jobs in 2003. In 2002, Mr. Jobs received a bonus of US$2.3 million.

In 2001, Apple also provided a special compensation package for Mr. Jobs that included a Gulfstream 5 executive jet. Apple agreed to pay approximately US$90 million for Jobs' use of the jet on company business. Because the aircraft was transferred to Mr. Jobs in 2001, the amount of approximately US$43.5 million paid by the company during fiscal year 2001 towards the purchase of the plane and the related tax assistance of approximately US$40.5million was reported as income to Mr. Jobs. In fiscal 2002, approximately US$2.27 million paid by Apple towards the purchase of the plane and approximately US$1.3 million in related tax assistance was reported as income to Mr. Jobs.

The proxy statement also said Apple will hold its annual shareholders meeting on Thursday, April 22, 2004 at 10:00 a.m., PT at the company's headquarters in Cupertino, Calif.

The only controversial topic for shareholders to address will be a proposal by a minority shareholder to cap the salary of Mr. Jobs at US$1 million and restrict other seniors executives from having a salary in excess of Jobs' salary. The company is recommending shareholders reject the cap.

The proposal was put forth by the United Brotherhood of Carpenters and Joiners of America, a minority stockholder that the proxy statement said owns 6,200 shares of common stock. The stockholder contends such compensation packages are excessive, the document stated.

"We believe that compensation paid to senior executives at most companies, including ours, is excessive, unjustified, and contrary to the interests of the Company, its shareholders, and other important corporate constituents," the stockholder stated. "We believe that it is long past time for shareholders to be proactive and provide companies clear input on the parameters of what they consider to be reasonable and fair executive compensation. We believe that executive compensation should be designed to promote the creation of long-term corporate value."

Apple's board of directors' dismissed the proposal saying it was "unnecessary" and could stifle any future hiring of qualified business executives.

The company board also recommended a rejection of the cap on salaries of directors saying, "limiting executive pay to no more than (US)$1 per year makes no sense. The base salaries of our executive officers, while greater than (US)$1 annually, are generally consistent with the salaries paid by comparable technology companies."

Other highlights of the upcoming shareholders meeting will be the re-election of six company directors and the ratification of KPMG LLP to audit the company's books.

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