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.

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.