Thursday, January 12, 2012

ZenTiger Taking a bite of the Apple

The new CEO of Apple, Tim Cook is to receive a US$378M dollar pay packet. This consists largely of shares, but it's still ridiculously huge, and totally unwarranted, IMHO. Particularly when you hear the logic:

The compensation is warranted because investors expect Cook to continue releasing the kinds of products that made Apple the world’s most valuable technology company, said Kevin Dede, an analyst at Brigantine Advisors in New York.

Do you put down a $378M non-refundable deposit based on expectations that some-one is going to cook up new products? What happened to risk and reward? This really is over-the-top and unnecessary.

Almost makes me think all Apple employees need to get a million in stock each to ensure they work harder and smarter.

3 comment(s):

macdoctor said...

From the Apple board's perspective, it is worth that kind of money just to ensure Tim Cook stays. His prescience as a safe, established pair of hands is widely credited with the general stability of Apple shares in the face of Job's death. Another big change now would shave 10 billion off Apple's value overnight. 386 mill is trivial in comparison

macdoctor said...

That should be presence, not prescience. Although people might be hoping he has some psychic powers, too.

ZenTiger said...

Do they really need someone that greedy?

Do they really need to think like that to work out a way to keep him?

Why would he walk out?

Do they think Microsoft might double that salary?

What about the 10 or so line managers that report directly to him? How will they feel if they do a fantastic job for a mere million, and miss out on the same ridiculous bonuses?

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