Apple Exec bonuses
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- dMullins0
When you earn a company money, and you're at the SVP level, you are earning yourself money. You hold out on a salary commensurate with your skill level, and wait to take bonus profits from YOUR company until it's appropriate. I'd say being one of the most profitable companies in the world currently makes the timing appropriate. As other said, the key is to continue innovation and profitability will follow.
At least it's not Scully raking in a check...
- scully took his checks a long time ago, when they were piliging the .coomg
- monNom0
^ WTF?
- lowimpakt0
everyone knows banks are public because you pay your cash in yourself but I guarantee you pay direct cash and tax cash into other companies.
there is little or no private. people pay through their tax for the means for companies to make profit
- omg0
Here's a first world problem
A company reigns successful and has tons of money to bank. They hoard the profits for whatever reason. Hoarding millions and billions of dollars like a vacuum. The uncirculated money affects the economy, as you can see that someone didn't spend the money in an area that needs jobs. What exactly are these higher ups going to do with that money? It'll go right back to the top.
- ernexbcn0
I don't find obscene that a private company making money gives perks to its executives. What I find obscene is bank directors getting perks while they bankrupt the institution and have to be rescued with public money.
- ernexbcn0
@pr2 those execs running the company as well as they do are generating a lot of jobs and allowing people to create companies based on what they produce or to provide components for what they build.
Of course they deserve whatever money the board of directors wants to throw in their direction.
- lowimpakt0
i have no problem with people getting paid well for working hard but I do have a problem with the global gap between the rich and the poor and the levels of exploitation and greed that are forcing that wedge.
I would say reduce the bonuses a bit and start properly investing in improved environmental and social performance of your supply chain.
- raf0
With Jobs gone, how do you keep the morale up and ensure the company doesn't fall apart? I am pretty sure it was Jobs' idea to solidify core management team just when they might want to fly away.
Take those people away and the company starts to slide down. Those are the people who know Apple plans for the future. They have been working on products we'll buy in a few years. They know how Apple structures work and how to implement them. Put them in competing companies and they reorganise the whole industry.
More than that: through their public performances in Apple shows they became recognizable media figures. Put Forstall on television and you have a top tech show in an instant. Make him a PR speaker for Asus and all the eyes are on him (bulged like his). They are recognizable, trusted figures.
I am sure headhunters with suitcases full of money have been circling around them for some time already. Just look at how Google and Facebook fish for programmers.
It's a lot of money but I think they're worth more than that, both to Apple and to the competition. It is pittance if you look at it from a perspective: it's less than 2% of the company net income for the last year alone and their shares are spread over a longer time.
They have earned this money... actually, will still have to earn over that time.- your argument that money = more motivation to work/stay at the company is invalidated here: http://www.youtube.c…pr2
- BusterBoy0
Let's not forget we're not talking CEO's here. We're talking senior execs. Does anyone seriously think Phil Schiller is worth $60M?
- boobs0
In a publicly traded company, how are you going to stop these guys from raiding the till, providing it's all legal? This is something the executive class learned years ago.
In the 1970s, the very top CEOs, of Ford and GM, earned just under a million per year. They were the highest paid executives in the world at that time.
Somewhere along the way, these guys learned they could pay themselves a fuck of a lot more, and get away with it. And now they do.
There's really only one way to stop them, and that's to tax the living shit out of incomes/capital gains/compensation, etc., above a certain level.
That was actually the strategy of the very high tax rates of the 1940s, 1950s, and 1960s: that gives an incentive to re-invest in the company, instead of taking more and more compensation. CEOs lived in big houses and had nice cars. But they didn't live in Versailles.
The chart up there that shows the average salary being nearly level for the last 40 years ought to tell you who's winning the class warfare. Average guy is getting buried!
Just think how much lower your health insurance premiums and co-pays would be if the people at the top weren't raking off so much for themselves.
- BusterBoy0
mono...you're a dill. I completely understand they are being paid in shares, with half vested until 2013 and the balance in 2016. I also understand this may be a tactic to keep these execs on board. BUT as has been proved with Steve Jobs, nobody is indispensible so I just don't reckon anyone is worth that much. $60M? Seriously...
What do you reckon Apple's share price will be come 2016? I'd bet London to a brick they won't be less valuable then.
- I don't think they'll change much at all by 2013, but by 2016 they could be anywhere.Amicus
- Amicus0
I guess it's risk vs reward.
The higher up the tree you are the more important and riskier the decisions you have to make. Consistently make good decisions and everyone has a job. Make one or two bad decisions and you can sink the whole company. Good executives are paid well because they very rarely make bad decisions.
I think the lowest paid workers should all get a bigger bite of the cherry, but you can train virtually anyone to assembly a product. However, it is the rare few who can think far enough ahead at a deep strategic level and turn that into great products that translate into profits.
Personally if I were the CEO I'd happily have a slightly lower profit margin to pay my workers better. 10% pay rises for factory workers would probably lower the profit margins by about 2%, right?
- numbers0
I tend to agree with pr2's comment even though they may be interpreted as socialist(?). Top execs should earn more, but why 6,000 times more? Do they really earn it? Or is being in that job just the same as any other, a lot of hard work, a lot of luck, and some bullshitting?
- MrT0
So a bunch of execs stand to get a fat payout. Despite the amount being subject to how well the company is doing, it will probably still seem obscene to the average person.
It's no more interesting, acceptable or justifiable simply because it's Apple.
- pr20
Raf, don't be naive. Apple made that money because of the execs but they were just a small part of the army of people who helped make all that profit, the janitors, the designers, the accountants, yes the slaves in Chinese factories too. And yet when it comes to diving up the spoils it goes only to those few on the top... And on top of that people like you naively assume that "they deserved it."
- < thiscannonball1978
- 1%omg
- by your logic: whatever you're charging for your film work a guy from 7/11 could do for minimum wageraf
- raf0
Imagine the cost of either of them being bought by Asus, Sony, Dell, HP—their deep knowledge of not only the technology and strategy but also of how the best performing tech company in the world is organised from within is worth even more than that.
Also, what's with this counting other people's money? What's it to you? Why don't you tell us what you earned last year, we'll tell you if you deserved it or not.
- Melanie0
Steve handpicked all the key players in Apple before he died, so maybe this is an incentive for them to stick around in case things get a little turbulent over the next few years.