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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."
...is so old news. This kind of thing was in full swing when Howard Hughes was active. Big deal. More power to Steve. Macs are great and it gives me a smile to know that all those wonks that said Apple was dead are oh-so-silent these days.
$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: $1.16mil for 2 years == not that much a year, compared to other major company's CEO's salaries.
Don't forget to think different.
Microsoft is considering paying dividends on its stock.... that would net Mr. Gate$ a cool $100 Million every year.... For doing NOTHING additional.
Private jets are expensive machines to operate, but they save companies an incredible amount of time. I doubt any of you would say "sure, borrow my jet that costs $15,000/hour to operate and never pay me back, my salary of $1 will cover it".
There are many advantages for Apple to rent instead of own the plane. Think of the insurance premium on a Lear jet.
The yearly operating costs of a jet are way over 1.2 million, so its cheaper for apple to rent it. Since its steve's jet, they still get to use it whenever they want.
If you are unconvinced that it is more effective to rent a jet than own a jet, do a google search on NetJets or Executive Jets.
So, its probably not "steve jobs" who owns the plane, but a company owned by Steve Jobs. And apple rents the plane from that company for a fair price. And I'm sure that Apple doesn't stiff Pixar everytime we have a cool new animated Mac commercial. Nobody seems to be whining about that....
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eBay just bought a Lear Jet back in July.
Lets compare Apple to eBay:
Apple - a world wide company with offices, manufacturers, suppliers, and facilities scattered through out the world.
eBay - A company built from a script a guy wrote to sell Pez dispensers, ie a building with a bunch of servers and programmers.
What advantage does a Lear jet offer to eBay? How often is Meg Whitman traveling to 3 different foreign countries in the same day?
I'm sorry I just can't picture a jet being useful to eBay (so its just a toy), whereas I can picture Apple sending a team of people to check up on operations at several different facilities scattered around the globe.
Basically I'm just jealous, cause I want a jet too dammit!
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blakespot
-- Heisenberg may have slept here.
iPod Hacks.com
"...A recent report published by Economic Research Institute and CareerJournal.com tracks executive compensation, and there was an interesting footnote -- the highest paid executive on the survey was Apple CEO Steve Jobs, even though he's not actively collecting a salary in his role. The Executive Compensation Index tracks how corporate executives are being paid, and has been active since 1997. It tracks total cash compensation -- to wit, salary and bonuses -- for the highest-paid executives at 45 major U.S. businesses. It also compares executive compensation to corporate revenues. The report said that Steve Jobs was the highest paid executive for the most recent survey period -- although he collected no salary, he did get a US$43.5 million bonus, according to the data collected..."
and BusinessWeek ranked Apple's as one of the ten worst Boards of Directors: "...Founder Steve Jobs owns just two shares in the company. Recently departed director Larry Ellison had none and had missed more than 25% of meetings in the past five years. The CEO of Micro Warehouse, which accounted for nearly 2.9% of Apple's net sales in 2001, sits on the compensation committee. Since 2000, the board has awarded Jobs 27.5 million stock options and a $90 million jet. There is an interlocking directorship--with Gap CEO Mickey Drexler and Jobs sitting on each other's boards..."
...but have you never sold or returned a present, to get what you really wanted?
So long as Apple would have otherwise rented a jet and Jobs pays taxes, fine. The airplane was originally reported as compensation (right?). If I were to question anything, it would be giving him the plane in the first place, although execs can negotiate pretty freely (the new post-Enron law did ban the multimillion dollar "loan" trick). Jets are often enough used for abuses on the company's tab -- golf "business" trips and the like -- as a way to provide disguised compensation and evade taxation.
Executive compensation gets pretty unbelievable. On the other hand, and unlike typical executives, without Jobs this mutlibillion dollar company would be dead, close to dead, or bought out. (Remember when Michael Dell said if he owned Apple he'd liquidate it to try to give shareholder something back?) Hmm, maybe not a bad quid pro quo.
Fortune Magazine does a nice business in tallying obscenity, check out year 2000.
I don't know what you're all bitching about. Jobs and Woz started a fucking company before many of you were born, and it turned into a profitable enterprise. So what if Jobs has a fucking jet. Him and Woz built the fucking company. They made a bunch of money on it. Woz made his cash, and moved on to teaching and now Wheels of Zeus. Jobs got outted, and moved on to other things. He too, is now back. I guess you ppl just have nothing better to do at 7 fscking am, other than rant and bitch and cry that someone has a jet, and you DON'T. 'Jobs Earns More Than a A Buck A Year' what fucking moron figured that puzzle out? Of course he earns more than a buck a year. He gets PAID one dollar by Apple to be the CEO. Thats far different from what he earns from stock and other assets or companies. I can see you people hating people because of their actions, but this is just a bunch of little boys waking up to watch saturday morning cartoons, and deciding that if x person has more money in the bank than them, they must be evil, or they did something evil to get that money. Some people put out a fuckign effort, and become successful. Maybe if you spent less time trashing people on slashdot, you would get something worthwhile done.
1.6 million? Steve Jobs is doing an incredable job with a company that probably wouldn't be around today if it wasn't for his renewed CEOship. 1.6 million isn't a whole lot in terms of CEO salery, anyone know how much he makes at Pixar?
- John
the 1$ is just the standard minimum for a contract. do you suppose he gets health benefits worth more than $1 too. i'd say so.
the thing with steve is that he loves running apple and it shows. that's why I did not worry about voting stock options for him. I did not have the sense he was going to pull an enron, goose the stock price and bail. On the other hand I was a bit nervous about the rest of the board. What made me less owrried was that some of the principles ate the time was larry ellison and the head of genetech. These people are also into their own bussinesses in the same way steve is into his. So i felt reassured.
maybe i'm wrong basing investment decisions on personality, but its the only stock I own I have not lost money on in the past several years.
But the tone of this post, that the $1 salary is a hypocritical lie just does not past the reality test. only a naive dupe would think that was his only compensation.
Some drink at the fountain of knowledge. Others just gargle.
Inertia can keep a company going for a long time. In the company I work for, I have seen mistakes that cost the company tens of millions of dollars, made not by people who successfully built the company, but by people who were brought in later. The fact that the company is still around just shows the inertia.
Apple brought in a number of people to try to fix the company, and Amelio nearly ran it into the ground. Scores of analysts had given Apple up for dead. Jesse Berst of Ziff Davis even moronically suggested that Apple should shut down its R&D labs and give the money to start ups. Then Jobs returned, made strong decisions, and today Apple is a different company.
So, I'd say that Jobs earned his money. He is one of the few "rock star" CEOs that has earned the money he made. It's a lot harder to fix a terminally broken company than it is to keep one going.
I would say that the business world is certainly a "what have you done lately". 1997 is receding fast, and Jobs is going to have to continue to lead Apple towards success to be worth that kind of compensation. Now that Apple is healthy, the next benchmark is increased market share. Dell has shown in its quarterly earnings that a company can do well in this economic downturn. It's time for Apple to do the same.
Insert simplistic political, ideological, or personal proselytization here.
Steve had originally agreed, AFAIK, to work for $1 a year (+ benefits that all other employees get) until Apple got turned around. It's turned, so stop whining already.
[Disclosure: yeah, I still work there.]
Alison
"It is a miracle that curiosity survives formal education." - Albert Einstein
Steve owns a private jet (forget who boght it, the fact is it's his). His company feels they could use such a jet, so steve is going to rent it. And this is odd how?
T Money
World Domination with a plastic spoon since 1984
But Clinton played into this rich versus poor thing at one time and made up some silly rules about executives who make more than 1 million in salary. The result? People like Jobs who have to earn their salary through rental of a jet. The result is also that many executives' salaries were reduced to 1 million and instead paid in stock and/or stock options. As you can imagne, this motivated many executives to do anything they could raise stock prices. Layoffs, shady accounting tricks, and companies incorporating in caribbean countries to get away from American government micromanagement is the result. (yes, the executives who did these things are of course ultimately responsible and not the person who motivated them to do it) Now, I am not slamming Clinton, he didn't have a crystal ball at the time to see the result. I do however thinks its none of anyone's business but the stockholders how much the executives make.
Never overestimate the end user. -jeramy b. smith
For that matter, the $40 million for the jet iself was just a gesture. This is the way Steve made his new fortune: Jobs owns 30,000,001 shares of Pixar, currently valued at $1,563,000,000. The shares increased in value by about $690,000,000 in 2002, so the $1,200,000 he made for the jet last year is pretty meaningless.
"Reality is just a convenient measure of complexity" -Alvy Ray Smith
You mean the jet that costs Jobs money to maintain and use? You bet your ass he rents it to them, and why shouldn't he? Why should Jobs foot the bill for the use of his property? I realize that it seems odd that a CEO would rent his jet to the company he runs, but this is no Enron. Let's keep the overreacting to a minimum, shall we?
--Rick "If it isn't broken, take it apart and find out why."
- Gulfstream V jet: $30m
- Tricked-out XServe: $8248
- 12" Al-Book $1299
Getting the company that bought you the jet to rent it from you: priceless.There are some things money can't buy. For everything else, there's Steve Jobs.
$DEITY bless $NATION
Hmmm... so they send you to the trouble site in a Lear jet if a server goes beserk? Sounds like time for a clever bit of system administration scripting.
/etc/init.d/tempcheck
"Gosh, Boss, I have no idea why the servers in LA are down. Even rebooting doesn't seem to fix it. I guess I'll have to be flown out there - such a shame since it's 75 and sunny over there and we're buried in snow here."
$ cat
if (LA.server == true)
{
if (CH.temperature < 15 || CH.expectedSnowFall > 10)
{
shutdown -halt now
}
}