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Jobs Earns More Than A Buck A Year

Posted by pudge on from the nice-work-if-you-can-get-it dept.

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."

14 of 77 comments (clear)

  1. jet thing by djupedal · · Score: 3, Insightful

    ...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.

  2. RTFA by Virus1984 · · Score: 5, Interesting

    $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.
    1. Re:RTFA by twiztidlojik · · Score: 3, Insightful

      Well, at least he's only picking up a dollar. Most CEO's would go fr the expense accounts, limo services, etc, rental of the jet, AND an exorbitant salary.

      Be nice. He's saving millions.

      --
      I will now redundantly add my name to the end of my post. You know, in case you forgot me or something.
  3. It makes sense to me.... by FaRuvius · · Score: 5, Insightful

    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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    1. Re:It makes sense to me.... by xpccx · · Score: 3, Interesting

      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!
    2. Re:It makes sense to me.... by Naikrovek · · Score: 5, Insightful

      i'm sure the jet was a real gift, not some silly mistake because they don't realize that buying a plane then renting it is dumb.

      then, as part of the plan, they rent it from jobs, to compensate him in ways other than salary. the cool part is that the people renting the plane pay for the upkeep. Jobs is making quite a good killing on that plane, and i say he deserves it. he pays taxes on the rental money, and since it is regular income, he's not doing anything shady by doing this.

      and the whole point of buying instead of renting is that it is cheaper in the long run, not so you can sell the thing later. not everything is an investment property.

  4. It makes MORE sense to me by FaRuvius · · Score: 4, Insightful

    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!

    --
    Need to get away?
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  5. Well, what goes around... by blakespot · · Score: 4, Insightful
    Well, he deserves an exhorbitant salary. That's what Apple gets for effectively pushing him out in the early-mid 80's. It took the company that he created after leaving Apple, NeXT, to return and take over Apple in '97 to save their ass. Had this not happened, Apple would not be here today.


    blakespot

    --
    -- Heisenberg may have slept here.
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  6. Um by Anonymous Coward · · Score: 3, Insightful

    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.

  7. Who cares? by +Majere+ · · Score: 4, Insightful

    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

  8. Apple annual report by goombah99 · · Score: 4, Informative
    As an apple stock owner I get the annual report. This fact has been in the annual report of many years now. IN deed recently they asked us to vote on ways to increace excectuive compensation. this is not newsworthy. I mean even if he did get 0$ compensation he'd still be willing to run the ocmpany since he has stock and stock options.


    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.
  9. He earned it by sg3000 · · Score: 5, Insightful

    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.

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  10. Geez! by Draoi · · Score: 3, Informative
    What a bunch of whiners! Lookit - I worked at Apple during the Spindler years & on into the Gil 'wimp bullshit' Amelio period. Jobs was the best thing that ever happened to Apple. He turned the company around where nobody else could. Let him have the damn jet - he earned it. Shareholders can't complain either for, without grouchy, megalomaniac Steve, Apple would now be very dead.

    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

  11. Because billionaires care about $1.2m by 90XDoubleSide · · Score: 4, Informative

    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