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Jobs Earns More Than A Buck A Year
The Only Druid writes "Well, though we've all heard about Steve Jobs only being paid $1 per year for being CEO of Apple, it turns out Apple pays him in other ways. He gets $1.2 million for renting the jet to them -- a jet that Apple bought for Jobs."
$1 a year for being the CEO.
$1.16mil for two years of jet renting
and even if you consider the $1.16mil to be a salary: $1.16mil for 2 years == not that much a year, compared to other major company's CEO's salaries.
Don't forget to think different.
I checked google and it seems the Gulfstream V has a direct operating cost (DOC) of about $1813.88 per hour. I'm not an executive so I don't know how often the plane is in use, but lets say 12 hours a day, 365 days a year, by multiple people.
If I did the math right, that puts the DOC per year at $7,944,794.40 (round that to $7.95 million). So if the DOC number is I calculated is correct, they're "saving" about $6.75 million a year.
But Apple paid $99 million for the plane. The whole point of buying instead of renting is that you get to sell your asset later on. If they were merely renting the plane for $1.2 million, that would be rather cheap. But you don't normally rent something that you've already paid for. The rental price is cheaper than the insurance/maintenance but Apple essentially lost $99 million when they gave the plane away. With the cost savings of $6.75 million a year for maintenance/insurance, they will have to rent the plane for almost 15 years to make up for the $99 million they lost when they gave the plane away.
Think about it, would you buy a house then give it to someone so you can rent it back from them? Even if the rental price is cheaper than the upkeep of the house, you no longer own the house!