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."

Comments

RTFA

[Virus1984]

$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.

It makes sense to me....

[FaRuvius]

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....

Re:It makes sense to me....

[Naikrovek]

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.

It makes MORE sense to me

[FaRuvius]

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!

Well, what goes around...

[blakespot]

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

Who cares?

[Majere]

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

Apple annual report

[goombah99]

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.

He earned it

[sg3000]

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.

Because billionaires care about $1.2m

[90XDoubleSide]

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.