The Steve Jobs As Chairman, Tim Cook As CEO Topic

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    Posted: 26 August 2011 11:36 PM #121

    johnG - 27 August 2011 02:12 AM

    As others have pointed out this is a great way to put some golden handcuffs on TC. Congrats to the BOD/SJ for stepping up to the plate. Probably the single best move the BOD has made in years.

    EDIT: That said, I’m more than a little concerned over the issue of the BOD taking more “control” of the company direction. ???  This actually scares the crap out of me and represents the single biggest risk for the future of Apple/aapl.
    http://www.reuters.com/article/2011/08/27/us-apple-governance-idUSTRE77P6K820110827?feedType=RSS&feedName=innovationNews&rpc=43

      cheers to the longs
        JohnG

    Horse hockey I say! Pure speculation on the part of an academic.

         
  • Posted: 26 August 2011 11:49 PM #122

    iphoned - 27 August 2011 01:57 AM

    I know they want to keep a talent like Cook. But this is beyond reason.  Jobs worked for free…

    He did no such thing. His salary was $1, but he holds huge amounts of stock that will appreciate along with Apple. He also holds huge amounts of stock options that become more valuable every day that Apple’s stock price increases.

    Besides, he’s worth over 5 billion dollars. As he once said, he doesn’t want to be the richest man in the graveyard. At this point, Apple may be a labor of love for him. Cook is not in his tax bracket and may not feel the same way.

    iphoned - 27 August 2011 01:57 AM

    ...and Cook already has an enormous comp, and is not a founder.

    From what I’ve read, Cook makes between $800,000 and $900,000 a year. I’m sure he also owns significant amounts of stock. In today’s world, I’m not sure that you would consider that “an enormous comp” for the CEO of the largest company in the world.

    Further, my understanding is that this grant of stock is currently worth some 340 million dollars which won’t be paid our for another 5 and 10 years. By that time, it may be worth 1 billion dollars. If Cook is still with Apple after ten years that will mean that he has been doing a great job and the 1 billion dollars in additional salary will probably feel like a bargain.

    iphoned - 27 August 2011 01:57 AM

    This will tear the exec team apart - imagine the envy of all the other stars that work for Cook who just get a “normal” comp…

    This is a beginning of the end of Apple as we know it…watch the execs leave one by one slowly…

    Hmm. I think that Apple execs have already been leaving one by one. As soon as the succession plan was known internally, some executives decided to strike out on their own. Others will join them. But I doubt its because they resent Cooks’ salary. Rather, some will want the glory and the salary that comes with other opportunities.

    Others will stay because they recognize that their biggest potential can be achieved by remaining at Apple. Cook is one of those people. He could have gone anywhere and been CEO of any company. Maybe he stayed because he foresaw that he would have the opportunity to become CEO of Apple. But I believe that he and many others will stay because they foresee that Apple still has greatness ahead of it and they want to be there for what promises to be the ride of their lives.

         
  • Posted: 27 August 2011 12:03 AM #123

    @fallkirk

    Cook got $5mill bonus on top of his $800k salary, and his total comp last year including options was a cool $59mil.

    But I am sure he feels underepaid at this level to a point where he’d rather be a CEO of another company…and so do probably most stars on the exec team, not to mention the key employees…

    When Steve Jobs was around some joked that he ran Apple single-handedly.  Well, when you create this kind of comp disparity, this may come to pass sooner than the board may imagine…let’s hope not, though.

    But I am sure everyone else at Apple is replaceable as this kind of comp kind may imply…

    [ Edited: 27 August 2011 12:34 AM by iphoned ]      
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    Posted: 27 August 2011 12:30 AM #124

    iphoned - 27 August 2011 03:03 AM

    ... But I am sure everyone else at Apple is replaceable ...

    Not replaceable at the same time tongue laugh.  The norm is to increase pay of each employee either through promotion or one-time bonus to keep the rank n file happy during this type of transition.  I doubt TC would leave for higher pay, he has Apple DNA.  This is a good time for executives who aspire to be CEOs or a more relaxing life to leave, many have done so, probably one or more executives would leave.  Jonathan Ives is the most likely.

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    Posted: 27 August 2011 12:31 AM #125

    ChasMac77 - 27 August 2011 02:36 AM
    johnG - 27 August 2011 02:12 AM

    As others have pointed out this is a great way to put some golden handcuffs on TC. Congrats to the BOD/SJ for stepping up to the plate. Probably the single best move the BOD has made in years.

    EDIT: That said, I’m more than a little concerned over the issue of the BOD taking more “control” of the company direction. ???  This actually scares the crap out of me and represents the single biggest risk for the future of Apple/aapl.
    http://www.reuters.com/article/2011/08/27/us-apple-governance-idUSTRE77P6K820110827?feedType=RSS&feedName=innovationNews&rpc=43

      cheers to the longs
        JohnG

    Horse hockey I say! Pure speculation on the part of an academic.

    “There’s no way Apple can continue its success to this extent.”

    True - there’s little chance Apple will ever get to $1T in revenues.  The same way there’s little chance anyone interviewed ever gave Apple a chance back in 1996.

    I’d love to see the tough questions for Tim Cook when the company can no longer grow astronomically at $300B in revs and $80B in net income.  For shame!  Off with his head!

    This is rather close to a FUD piece.  Corporate governance and Apple’s cash pile are the among the biggest issues harped on by various commentators.  Yep, Apple’s fortunes are surely in peril because of its years or opaqueness and poor decision-making.

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  • Posted: 27 August 2011 12:35 AM #126

    Cook is getting a stake of a little more than 0.1% of the company. Not at all out if line for a CEO. As shareholders we want him highly motivated by the share price.

         
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    Posted: 27 August 2011 12:48 AM #127

    Here’s a thread with posts describing some past executive RSU grants, for comparison:

    http://alpha.macobserver.com/tmo/forums/viewthread/78213/P75/#524036

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  • Posted: 27 August 2011 02:18 AM #128

    iphoned - 27 August 2011 03:03 AM

    @fallkirk

    Cook got $5mill bonus on top of his $800k salary, and his total comp last year including options was a cool $59mil.

    But I am sure he feels underepaid at this level to a point where he’d rather be a CEO of another company…and so do probably most stars on the exec team, not to mention the key employees…

    When Steve Jobs was around some joked that he ran Apple single-handedly.  Well, when you create this kind of comp disparity, this may come to pass sooner than the board may imagine…let’s hope not, though.

    But I am sure everyone else at Apple is replaceable as this kind of comp kind may imply…

    Thanks for setting me straight iphoned. Still, I can’t agree with your conclusions. It seems to me that Apple just made it impossible for others to poach Cook. And Cook, in his turn, is showing faith that he’ll both be at Apple in 5 to 10 years and that Apple will be worth being at. I guess only time will tell.

         
  • Posted: 27 August 2011 02:19 AM #129

    iphoned - 27 August 2011 01:57 AM

    I know they want to keep a talent like Cook. But this is beyond reason.  Jobs worked for free, and Cook already has an enormous comp, and is not a founder.

    This will tear the exec team apart - imagine the envy of all the other stars that work for Cook who just get a “normal” comp…

    This is a beginning of the end of Apple as we know it…watch the execs leave one by one slowly…

    Please get a grip.  The CEO of Goldman-Sachs took home $20M in 2009 after nearly wrecking the world economy.  Cook is running the largest corporation in the world successfully.  He deserves whatever he can get.  I suspect that most executives at Apple are not there for the money anyway.

         
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    Posted: 27 August 2011 10:11 AM #130

    A CEO is only over compensated if he fails to deliver results for the company. Home Depot paid Bob Nardelli 220 million to leave after almost destroying one of the great American success stories. Arthur blank performed magic in a relatively short period of time, then Nardelli came in and almost bankrupted the company.

    This does not fully vest for ten years so it averages to 38 mil per year, seriously iphoned, you think that is to much to lead Apple?

    Also comparing SJ’s pay and TC is just ridiculous. SJ is a billionaire, TC is not. Like they say, its good to be king.

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  • Posted: 27 August 2011 12:18 PM #131

    Yes,  am sure Cook is in fine company now, comp wise with the other high-priced CEOs. Intersting to ponder if $59m a year apparently was not enough to keep him at a CEO job at Apple…and, after all, those who can divide by 10 (forgetting other math functions) will say “it is only $35m” a year…also interesting to ponder how this will affect the motivations of the rest of the management team…but one thing I am certain of, the faithful will cheer all the way.

         
  • Posted: 27 August 2011 01:07 PM #132

    @iphoned

    Similar pattern in these posts.  You make a point, people don’t agree so you insult them.  Not sure what the point to this pattern is. 

    In any event, high priced CEO’s are a fact of life in business.  There is nothing to be gained, from an investment perspective by singling out Apple.  The Board has found the CEO who they believe is best suited for the job, and it is their job to pay market rates, or risk the consequences of a defection.  There is nothing unusual here that signifies that Apple is doing something detrimental to the shareholders.

    Then again, if the point is to jump on a soapbox, then I guess pretty much any trumped up issue will do.

         
  • Posted: 27 August 2011 02:27 PM #133

    Mav - 26 August 2011 10:05 PM

    This is the succession topic, not the post the tabloid pix of an allegedly dying Steve Jobs being conveniently stood up for a photo op topic.

    AWSOME!!!! WITH YOU ALL THE WAY

         
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    Posted: 27 August 2011 03:29 PM #134

    iphoned - 27 August 2011 01:57 AM

    I know they want to keep a talent like Cook. But this is beyond reason.  Jobs worked for free, and Cook already has an enormous comp, and is not a founder.

    This will tear the exec team apart - imagine the envy of all the other stars that work for Cook who just get a “normal” comp…

    This is a beginning of the end of Apple as we know it…watch the execs leave one by one slowly…

    And you have an unique insight into the feelings of Apple’s executive team how?

    This is a silly discussion.

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    Posted: 27 August 2011 04:36 PM #135

    AT, you watch yourself.

    Flaunting your $10,000.00 gains won’t win you any friends.  wink

    Honestly, you don’t have to remind us every week you’re the Peter Lynch of AAPL investors or something.  We can’t all sell at every top and buy at every bottom as only you can.  raspberry

    Also, it would appear your PM folder is as full as your mattress of cash.

    [ Edited: 27 August 2011 04:38 PM by Mav ]

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