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Apple Puts $383 Million Handcuffs On CEO Tim Cook

timothy posted more than 2 years ago | from the I'll-take-those-odds dept.

Businesses 170

theodp writes "There are bonuses. And then there are bonuses. Apple's board, led by sadly frail-looking chairman Steve Jobs, signaled its long-term confidence in Tim Cook as the company's new leader, disclosing in a regulatory filing that it's awarding the new CEO one million restricted stock units that will vest over the next decade. Apple shares closed at $383.53 Friday. From the SEC filing: 'In connection with Mr. Cook's appointment as Chief Executive Officer, the Board awarded Mr. Cook 1,000,000 restricted stock units. Fifty percent of the restricted stock units are scheduled to vest on each of August 24, 2016 and August 24, 2021, subject to Mr. Cook's continued employment with Apple through each such date.'"

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170 comments

That's almost enough money... (-1, Offtopic)

Anonymous Coward | more than 2 years ago | (#37226782)

to buy a First Post!

Disgusting (0, Flamebait)

Anonymous Coward | more than 2 years ago | (#37226786)

Yes, simply disgusting.

Re:Disgusting (0)

Anonymous Coward | more than 2 years ago | (#37227038)

It's hard to imagine what an annoying jackass you are in real life.

Re:Disgusting (0)

Anonymous Coward | more than 2 years ago | (#37227286)

You've seen them, hipsters. Most likely toting an iPhone.

This is the right way! (3, Insightful)

Kensai7 (1005287) | more than 2 years ago | (#37226794)

This way if the company continues to win and prosper, he will become wealthy. Otherwise no honey. This is the right way!

Re:This is the right way! (0)

thesh0ck (1983948) | more than 2 years ago | (#37227098)

This is a ploy to dillute stock for other shareholders over time as apple will begin losing money soon.

Re:This is the right way! (1)

Registered Coward v2 (447531) | more than 2 years ago | (#37227370)

This is a ploy to dillute stock for other shareholders over time as apple will begin losing money soon.

Actually, they will be paid out in either shares already held through repurchase or otherwise on hand, or through share purchases / other cash exchanges (for example, Apple could simply repurchase the RSU's from cash on hand) as they are exercised. Either way, no dilution occurs.

Re:This is the right way! (1)

Trufagus (1803250) | more than 2 years ago | (#37227214)

He already had an enormous number of shares, the eyes of the tech world on him, and the biggest company in the world at his command, and you're suggesting there wasn't sufficient motivation???

If he didn't want this job, and intend to do his absolute best even without this additional bonus then he shouldn't have got this job.

Re:This is the right way! (5, Insightful)

CharlyFoxtrot (1607527) | more than 2 years ago | (#37227366)

It's a message to the outside world more than anything else: Apple and Cook saying "We think this job is long term and we're going to make profit doing it together." Sort of a mutual vote of confidence to calm any anxiety outsiders might have.

Re:This is the right way! (1)

CrimsonAvenger (580665) | more than 2 years ago | (#37227270)

So, odds that Apple will fire him in the first week of August, 2016? Any bets?

Re:This is the right way! (2)

Runaway1956 (1322357) | more than 2 years ago | (#37227292)

I agree one thousand percent! All bonuses should be tied to the corporate welfare. If the corporation goes bankrupt, then all the execs should be on the streets looking for handouts. If the corporation does well, then execs should get a bonus. If the corporation does exceedingly well, then execs might get a really good bonus.

Anything else is insanity.

Re:This is the right way! (1)

Ihmhi (1206036) | more than 2 years ago | (#37227670)

I might be naive on this, but isn't this how bonuses already work? I thought that bonuses were tied to performance or meeting other goals (i.e. a HR guy having a good retention rate of hired employees, or an IT guy getting a new technology deployed by the end of the quarter). I'd like to see an example of someone getting a bonus when they've been doing a shitty job (excluding the easy google result of the banks after the bailout).

Re:This is the right way! (3, Interesting)

Runaway1956 (1322357) | more than 2 years ago | (#37227804)

I hate to say it - but, yes, you're naive. You must have missed the government bailout of my nation's largest banking corporations. Despite the fact that our largest banks were on the brink of bankruptcy and disaster, those same banks took bailouts in one hand, and paid their executives exorbitant bonuses with the other hand. There have been numerous news stories in the past decade, of executives being sacked, or even convicted, but still demanding (and getting) lucrative bonuses and/or severance packages. I have no idea how the rest of the world handles these things, but here in America, if you are one of the "Good Old Boys", you can't lose. Drive a good company into the dirt, and walk away with awesome bonuses.

Re:This is the right way! (1)

Anonymous Coward | more than 2 years ago | (#37227316)

This way if the company continues to win and prosper, he will become wealthy. Otherwise no honey. This is the right way!

He can tank Apple stock by 90% and walk away with 38m$ bonus for it. The right way?

He gets $0 if he screws up (2)

perpenso (1613749) | more than 2 years ago | (#37227386)

This way if the company continues to win and prosper, he will become wealthy. Otherwise no honey. This is the right way!

He can tank Apple stock by 90% and walk away with 38m$ bonus for it. The right way?

Or he can double Apple stock and walk away with a $767m bonus.

Also keep in mind that he can be fired if he performs poorly, so if he tanks Apple stock in the next 5 years he gets $0.

Re:He gets $0 if he screws up (0)

Anonymous Coward | more than 2 years ago | (#37227506)

This way if the company continues to win and prosper, he will become wealthy. Otherwise no honey. This is the right way!

He can tank Apple stock by 90% and walk away with 38m$ bonus for it. The right way?

Or he can double Apple stock and walk away with a $767m bonus.

I guess all the cool stuff he can get for those extra 380m$ that he couldn't afford with his first 380m$ will keep him churning on at night..

Also keep in mind that he can be fired if he performs poorly, so if he tanks Apple stock in the next 5 years he gets $0.

This is a good point if it is handled this way. From what I've seen boards who give away insane bonuses (which 380m$ is) rarely handle it this way even when you have poorly performing CEOs.

1,000,000,000 shares? (1)

arcite (661011) | more than 2 years ago | (#37227422)

That's some mighty fine booze money there my friend.

Re:This is the right way! (5, Funny)

ObsessiveMathsFreak (773371) | more than 2 years ago | (#37227518)

This way if the company continues to win and prosper, he will become wealthy. Otherwise no honey.

This is an outrageous affront to the principles of merit and earned reward which made this country great. If CEOs cannot expect an honest $5 million bonus payment for liquidating divisions and rolling back R&D in the short term, how will we attract the best people to run our companies?

It's no surprise to hear this from a company run by a known former hippie. This kind of peace and love "fairness" will sink Apple as it will sink that other great coropration, the U.S.A. Ambitious, driven people will be forced out by poor remunerations, to be replaced by steady, long-term focused, family men whose decisions will be stymied by their senses of "responsibility" or--God Almighty forbid--"fiscal prudence".

That's not the America I know! The America I know gives 29 years olds a chance to run multi-million dollar companies and over three times their own age. It allows new technologies to be brought to market cheaply by giving their secrets to foreign contractors. It allows billions of dollars to soak up the economic chain to the righteous, hard-working, low-taxed millionaire hands where it belongs. The America I know embraces inequality as a founding principle!

If this catches on, expect myself and the rest of your betters moving on to a better life in Shanghai, under a Government which recognises and rewards our ability.

Re:This is the right way! (-1)

Anonymous Coward | more than 2 years ago | (#37228106)

Excuse me, what are you babbling about?

Re:This is the right way! (1)

JamesP (688957) | more than 2 years ago | (#37227820)

Yeah, I mean, Jobs' salary was only one dollar a year, no wonder he resigned...

Oh look... (5, Insightful)

bmo (77928) | more than 2 years ago | (#37226798)

Motivation to look out for the long-term interest of the company instead of the next quarter.

Whoda thunk it?

Sadly, such motivation is missing from the portfolios of many CEOs.

These are not handcuffs. The only people who think these are handcuffs are day traders and speculators. Fuck them.

--
BMO

Re:Oh look... (1)

Hijacked Public (999535) | more than 2 years ago | (#37226820)

Day traders and speculators in the employ of major banks and trading houses unfortunately make the market. Aided by the unending stupidities of cost accounting.

One can only hope seeing a goliath like Apple make an obvious pro-throughput move will convince a few others.

Re:Oh look... (1, Insightful)

drinkypoo (153816) | more than 2 years ago | (#37226872)

Day traders and speculators in the employ of major banks and trading houses unfortunately make the market.

I think you mean make up the market. Corporations producing goods of value make the market.

Re:Oh look... (1)

Hijacked Public (999535) | more than 2 years ago | (#37226878)

Nope, not this time.

Speculators make the market (3, Informative)

tepples (727027) | more than 2 years ago | (#37227162)

Without someone willing to buy or sell a given security at any particular time, there is no liquidity and therefore no market. Speculators make the market [wikipedia.org] by being willing to buy or sell.

Re:Oh look... (2)

CohibaVancouver (864662) | more than 2 years ago | (#37227084)

Day traders and speculators in the employ of major banks and trading houses unfortunately make the market

I work for a small-cap publicly-traded software company, with the share price around $4. Do the above cause the share price to go up and down marginally? (up a quarter, down fifty cents, up a quarter, then again etc.) Sure. However, our share price is primarily driven by company performance - Our revenue and OpEx - The share price metrics clearly point to this. "Day Traders" are not going to decimate our share price, nor are they going to drive it up into the stratosphere.

Re:Oh look... (1)

Bing Tsher E (943915) | more than 2 years ago | (#37227964)

You are correct, but what you are talking about is not 'making the market,' you refer to 'keeping the economy viable.' As in: producing something of actual value.

'The Market' as grandparent referred to it is a gathering of parasites. They may be somewhat necessary. Some of the time.

Re:Oh look... (2)

StubNewellsFarm (1084965) | more than 2 years ago | (#37227320)

How is this motivation to do well? Suppose Cook royally screws up and Apple stock drops to $100/share. Then his bonus is only worth $100 million. That's quite a penalty. Give him a million options, and he'll need to keep the stock price going up.

Re:Oh look... (1)

Ryanrule (1657199) | more than 2 years ago | (#37227406)

Ide like to see it at 30 years. For amount of money, working someone to death is completely acceptable.

The bigger they are..... (1)

metalmaster (1005171) | more than 2 years ago | (#37226802)

ya know.... APPL just may tumble all the way down by 2021. I guess $1million @ $1/share aint so bad either

Re:The bigger they are..... (0)

Anonymous Coward | more than 2 years ago | (#37226892)

AAPL.

Re:The bigger they are..... (1)

bmo (77928) | more than 2 years ago | (#37226916)

That... uh... sort of the point of these vested stock options.

Companies do not just randomly tank on their own. They need to be driven there by incompetent leadership.

If he drives the company into the ground in 10 years, he doesn't deserve a dime, actually, but if he triples the value of the company, he gets more than a billion dollars for his troubles.

It's the right way to do things.

Re:The bigger they are..... (-1)

Anonymous Coward | more than 2 years ago | (#37227342)

Companies do not just randomly tank on their own. They need to be driven there by incompetent leadership.

That depends on just how inflated their value is.

Apple is a company that designs consumer electronics products which are mostly manufactured by other people and sold by other people. Their products have no unique capabilities, offer a mediocre-to-poor value proposition, and mostly sell on "cool factor" which was previously cultivated by the world's greatest pitchman (who has now retired).

Their profitability can dry up overnight. It won't take incompetence, just the lack of a reality distortion field.

Re:The bigger they are..... (2)

del_diablo (1747634) | more than 2 years ago | (#37227392)

Well, the thing is that the "cool factor" is something no other company does.
Look at the Macbook Air: The thing has been without proper competition for quite some time, and just recently the Ultrabook concept has been spawned just so that some companies will attempt to compete.
If Appe never had made the iPhone, the touch interface would never have gotten popular either.

If Apple is "a disgusting company with no creativity", then please tell me what IBM, Lenevo, Acer and all the other copycats is then?

Re:The bigger they are..... (1)

Bing Tsher E (943915) | more than 2 years ago | (#37227976)

If Appe never had made the iPhone, the touch interface would never have gotten popular either.

That cannot be proven or disproved. So all it amounts to is an ungrounded assertion.

Re:The bigger they are..... (1)

bmo (77928) | more than 2 years ago | (#37227396)

I read your message and it's like I'm really on /g/ with the number of /g/ memes you're spouting.

You're an idiot. Certified.

--
BMO

Re:The bigger they are..... (0)

Anonymous Coward | more than 2 years ago | (#37228104)

ya know.... APPL just may tumble all the way down by 2021. I guess $1million @ $1/share aint so bad either

and it would not matter to Tim as his shares trade under the AAPL label

1 MEEEEEELLLLION stock units. (0)

Anonymous Coward | more than 2 years ago | (#37226804)

It is a stock, it is not a unit, its an object. I hate all this waste of words to make it sound impressive. Its redundant. It distracts from understanding. It confuses most people.

Re:1 MEEEEEELLLLION stock units. (1)

Tacvek (948259) | more than 2 years ago | (#37227328)

Unfortunately though, Restricted Stock Unit (RSU) is the standard term. After all they are not shares of stock, although the company will need to give him shares or the value of shares when these vest. They are also not stock options, since those require buying the stock at the specified price in order to not be wasted. So they went with units.

Not bad (1)

Morky (577776) | more than 2 years ago | (#37226810)

Nice bonus, but $383,000,000 doesn't buy what it used to.

Re:Not bad (1)

SteveFoerster (136027) | more than 2 years ago | (#37226956)

No, and ten years from now who knows how weak the dollar might be? We might all have contracts for $383 million by then.

Re:Not bad (1)

shitzu (931108) | more than 2 years ago | (#37227068)

Yeah, but his contract is for 1000000 stocks that AT THE MOMENT cost $383 apiece. The price will be something else by the time you will have a $383 million contract.

Re:Not bad (1)

Bing Tsher E (943915) | more than 2 years ago | (#37227994)

Hopefully it will be worthless. In the best scenario, the Apple logo will be mainly seen on cards sold at supermarket checkstands, the way the Napster logo presently is.

We're allowed to say that here, even on the wholly apple-owned apple.slashdot.org sub-domain, correct?

not like it's real money (2)

alen (225700) | more than 2 years ago | (#37226812)

it's stock he can't sell for another 10 years. it's only worth 383 million if the stock price stays where it's at. Just look at GE after jack welch left. MS after bill gates. or almost any other company after an iconic CEO or founder steps down. the stock usually tanks.

usually it's the law of large numbers. you can't grow as fast when you're a huge company

Re:not like it's real money (2)

bmo (77928) | more than 2 years ago | (#37226858)

Microsoft's stock tanked at the Dot Bust, over 10 years ago.

http://finance.yahoo.com/q/bc?s=MSFT+Basic+Chart&t=my [yahoo.com]

It hasn't ever recovered. When Gates left, it didn't even leave a bump in the graph.

To contrast with a different situation...

When Carly Fiorina got kicked out of HP, the market cap of HP bounced 3 billion dollars. In other words, the market thought Carly was a drag on HP by 3 billion.

--
BMO

Re:not like it's real money (2)

macs4all (973270) | more than 2 years ago | (#37226944)

When Carly Fiorina got kicked out of HP, the market cap of HP bounced 3 billion dollars. In other words, the market thought Carly was a drag on HP by 3 billion.

She and her bathroom-spying team, er, WERE.

Good riddance, bitch!

Re:not like it's real money (4, Interesting)

bmo (77928) | more than 2 years ago | (#37226976)

I feel ya, bro, I feel ya.

She was of the same school as Scully. "We sell a brand, not products." We need to find the business schools where they learn this shit and burn them to the ground.

--
BMO

Re:not like it's real money (1)

Kjella (173770) | more than 2 years ago | (#37227266)

She was of the same school as Scully. "We sell a brand, not products." We need to find the business schools where they learn this shit and burn them to the ground.

Because Apple isn't selling a brand? An image? The problem is that some CEOs go over the top and forget that the actual product is part of your reputation as well. If people think your product is buggy low-quality shit and you get a reputation for that, it's a turn-off in every market segment. Then it hardly matters if you're hitting the "right" segments or not.

Re:not like it's real money (4, Insightful)

bmo (77928) | more than 2 years ago | (#37227372)

>Because Apple isn't selling a brand? An image?

No, they don't They sell products first. The brand, the reputation /follows/.

It's how they were brought back from the dead, because Apple had a shitty reputation back in the 90s because they did stupid shit like sell an '030 machine for $10,000 with a straight face (the 20'th anniversary edition Macintosh).

Scully was "brand first, product last" and it showed through the entire 90s until Jobs came back after learning hard lessons at NeXT.

"Brand first product last" kills companies. It was introduced at HP with Carly, and the effects of the Carly era are still being felt, because HP just decided they can't compete in the hardware arena anymore.

Another "brand first, product last" company is Nokia. Nokia built a reputation on innovative phones that worked. Now look at them. Instead of innovating in the smartphone space, they sat on their hands and phoned it in (hah) on their name, only to become a Microsoft puppet in the Trojan Horse CEO deal of the century.

I give HP 5 years, and then their stock is going to be pennies.

I give Nokia 2 years and they will cease to exist.

--
BMO

Re:not like it's real money (0)

Anonymous Coward | more than 2 years ago | (#37227946)

The TAM (20th Anniversary Mac) was never an '030 (Motorola 68030) machine. It was a PowerPC 603e machine. The reason why it was the 603e was that the 604 series was too power hungry for that form factor. It was basically a laptop that was repackaged to be upright.

The limited production explained a lot of the pricing structure. A G3 processor would have suited the TAM much better but it had not hit production yet.

Making the TAM as a celebration of Apple was a pretty dumb move since they were pretty much at the end of their existence, until the Jobs came back in to give them hope.

Just remember most everyone had given Apple the same prognosis that you have given HP and Nokia now.

Re:not like it's real money (0)

Bing Tsher E (943915) | more than 2 years ago | (#37228020)

until Jobs came back after learning hard lessons at NeXT.

So what old 'blow' learned at NeXT was 'product first' marketing? You're nuts. Maybe he figured that out after the major smackdown. What Jobs learned in the years after he first was thrown out of Apple was how to schmooze. Then, on his return, they were ballsy and just barely big enough to have the critical mass to 'in your face' market an MP3 player that the Music Industry couldn't defeat.

Your revisionist history is fun to spin up, though. Looks spiffy balanced on the tip of your finger.

Re:not like it's real money (1)

symbolset (646467) | more than 2 years ago | (#37228032)

Hp didn't declare defeat. They won. The game they won just doesn't have any prize money, so they're going to play a different game.

Re:not like it's real money (1)

jo_ham (604554) | more than 2 years ago | (#37227590)

It's subtly different - Apple's brand is one of the most important things to Apple, to the exclusion of a couple of other things that a company might normally place above it (like popularity among geeks, who are traditionally high spenders on hardware).

What they *sell* to you though is a product, which the brand merely accentuates. After the sale you have an iPad/iPhone/Mac and the advertising talks about what those things do, as does the Apple site and the documentation. You get something tangible.

HP, on the other hand, was trying to sell things along the lines of "you need product X because it totally web 2.0's your business effectiveness" (and what are you selling to me? A printer? Right).

Don't get me wrong, the brand is al part of Apple's methods but they do actually back it up with products that reflect favourably on that brand. HP was just selling the sizzle and had a few photos of some hotdogs.

It's a shame because before Carly fucked it up, buying something from HP would have been easy - in a shortlist of products that were all broadly similar, I'd have gone for the HP. Not so much any more.

Re:not like it's real money (1)

Registered Coward v2 (447531) | more than 2 years ago | (#37227400)

I feel ya, bro, I feel ya.

She was of the same school as Scully. "We sell a brand, not products." We need to find the business schools where they learn this shit and burn them to the ground.

-- BMO

well, for successful companies, that is true. A good brand enables companies to extract a price premium - because people know and trust the company's brand. Products, of course go hand in hand with that - you need to make good products so the brand is valuable, but you sell the brand. Otherwise, all you have is another me-too commodity.

Commodity sellers try desperately to create a brand - so they can sell it and get more. why do you think the Canadian Wheat Board spends money selling the attributes of "Canadian Wheat?" If people associate Canadian Wheat with "high quality" they will get more for their wheat.

So yes, you do sell the brand - but need good products to maintain it. HP seemed to forget what made the HP brand.

Re:not like it's real money (2)

Hijacked Public (999535) | more than 2 years ago | (#37226908)

Eric S Raymond (and Taco) after this [slashdot.org] ...

Re:not like it's real money (4, Insightful)

macs4all (973270) | more than 2 years ago | (#37226932)

it's stock he can't sell for another 10 years. it's only worth 383 million if the stock price stays where it's at. Just look at GE after jack welch left. MS after bill gates. or almost any other company after an iconic CEO or founder steps down. the stock usually tanks.

usually it's the law of large numbers. you can't grow as fast when you're a huge company

Amazingly, even though "the market" is EXTREMELY jittery right now, Apple's stock only went down by 7%, and in two days is now trading HIGHER than the pre-announcement price.

This reflects the fact that Tim Cook IS the right man for the Job, and in fact, already HAS a proven track record at Apple, since he has run the company twice (or is it three times?) during Jobs' other hiatuses (hiatii?). And Apple and Jobs' have been quite smart by pushing Tim's previous fill-ins out into the limelight. Not only did that signal to everyone that Apple had "a plan" for succession, but also let everyone get to know Tim Cook, and his managerial style.

Fortunately, Jobs' protracted illness has given both he and Apple time to do this right. If Jobs had died in a plane crash or something, and no one had ever heard of Tim, THEN there would have been a bigger drop. But not this way.

Apple's stock isn't going to be "tanking" anytime soon. Now go spread your FUD somewhere else.

Re:not like it's real money (4, Insightful)

flyingsquid (813711) | more than 2 years ago | (#37227080)

This reflects the fact that Tim Cook IS the right man for the Job, and in fact, already HAS a proven track record at Apple, since he has run the company twice (or is it three times?) during Jobs' other hiatuses (hiatii?).

What it probably reflects is that the news of Jobs departure was already factored into the stock price. Investors already knew how central Jobs has been to Apple, investors knew that Jobs had previously taken a medical leave for pancreatic cancer, and investors knew that Jobs had gotten a liver transplant which appeared to be an effort to treat a recurrence of that cancer. This wasn't insider information or anything, this was widely reported in places like Slate.com. Given that, it seemed like the question was not whether Jobs would leave but when, and everyone's been waiting for this to happen. Now it has, and the uncertainty is removed.

Re:not like it's real money (1)

Kjella (173770) | more than 2 years ago | (#37227204)

That, and that Jobs isn't dead he's now chairman of the board. Of course that means he won't be running things day to day like a CEO, but he'll be there to guide Apple. Hopefully the cancer isn't terminal but if it is, I think that's when we'll see the real drop.

Re:not like it's real money (3, Interesting)

mikael_j (106439) | more than 2 years ago | (#37227314)

I'm not going to speculate on the exact reasons for Jobs resigning as CEO but I suspect it was done now rather than later is so that Tim Cook gets a chance to prove to the rest of the world that he really is capable of running Apple. So should Jobs step down completely/die/whatever in the future the stock price won't tank because everyone has gotten over the whole "Apple needs Jobs to survive" thing.

In that way it's a smart move. If anything, Jobs is 56 years old, even if it wasn't for his illness that sounds like the age at which you'd at least be considering your retirement plan. For all we know he might be perfectly (well as perfect as you can be after a transplant and cancer) healthy but just knows that he doesn't want Apple to go down the drain when he retires and he doesn't want to keep working past 60 or 65.

I know a few people who ran their own companies and they all started putting things into motion for their retirement in similar ways when they were in their mid-50s, it just takes a while to step down when you're The Boss(tm).

Re:not like it's real money (1)

multipartmixed (163409) | more than 2 years ago | (#37227502)

> For all we know he might be perfectly (well as perfect as you
> can be after a transplant and cancer) healthy

Did you click on the photo link in TFA? It saddens me greatly, but I am quite certain Jobs has seen his last Christmas. And maybe even Labour Day.

Re:not like it's real money (1)

jo_ham (604554) | more than 2 years ago | (#37227618)

Yeah, I hear being badly photoshopped is damaging to your health.

Re:not like it's real money (1)

Dhalka226 (559740) | more than 2 years ago | (#37227546)

Well, you're right: Apple won't be tanking anytime soon, but the long-term success of the company is still in question.

The problem is, we won't really be able to evaluate it for a while. I'm sure they already have their next product or two down the road pretty much mapped out and all Tim has to do is point the rudder that direction. The real test will come in when Steve Jobs no longer plays an active role at Apple and there isn't a document somewhere laying out the path forward. In short, we have to get to a point where Tim Cook is actually the one creating the vision and the plan for the company rather than simply implementing it. This could quite literally take years, and we really won't even know when it starts.

For the most part, I do think Apple will be fine. They have a huge brand image that can buffer an awful lot of small missteps. When 35% of consumers say they will buy the iPhone 5 without knowing anything about it or seeing it [eweekeurope.co.uk] , and 51% say they would buy it in the first year*,I think that's a pretty nice cushion. It would take some serious fucking up to erode all of that and then take the company into the tank -- not that it is not possible, of course.

* This was the result of an online survey and as such is not scientific, so I wouldn't take the numbers as absolutes in terms of extrapolating to the public at large. They're still damn impressive though. Companies kill for brand images like this.

Re:not like it's real money (0)

Anonymous Coward | more than 2 years ago | (#37227696)

Blah blah blah. You attack anti-Apple people who are not here, yet you obviously know nothing about the stock markets, and parade around like an Apple fanboy. Shameless and idiotic. PS: The answer to Apple's stock in the past few days lies in the trade volume. I'm sure you'll be able to analyze it. And the answer isn't anything you made up above.

Wishes To Apple (1)

lovelyrenu (1986890) | more than 2 years ago | (#37226826)

Hi all... Hope this company will do the same as under legendary Steve Jobs. We will miss u Steve.

Re:Wishes To Apple (0)

macs4all (973270) | more than 2 years ago | (#37226954)

Hi all... Hope this company will do the same as under legendary Steve Jobs. We will miss u Steve.

He's NOT DEAD YET!

Damn!

Re:Wishes To Apple (-1)

Anonymous Coward | more than 2 years ago | (#37226992)

But hopefully soon so this stupid cult can finally end.

Re:Wishes To Apple (0)

steve_jobs_apple (2448066) | more than 2 years ago | (#37227044)

I got better...

BRING OUT YOUR DEAD!

Sent from the iPestilence cart.

--
Steven Jobs

Re:Wishes To Apple (0)

Anonymous Coward | more than 2 years ago | (#37227296)

Touchy, arent you.

It doesn't look like the parent said/implied anything about him being dead.

Sure (1)

CheerfulMacFanboy (1900788) | more than 2 years ago | (#37226834)

Both sides show confidence in each other - but that sure is a way to put a negative spin on it.

Poor Man (0)

Sponge Bath (413667) | more than 2 years ago | (#37226840)

No executive iPlane? Outrageous! If I was Tim, I would hold out for a black turtleneck so he and Steve can be known as the Apple Twinkies.

Re:Poor Man (1)

SteveFoerster (136027) | more than 2 years ago | (#37226946)

More like Ho-Hos, although for $383 million, I'd be one of those too...

Re:Poor Man (0)

Anonymous Coward | more than 2 years ago | (#37227014)

They stopped with the iPlanes once they realized they had to buy a new one if a part was worn out.

This is not handcuff (1)

zoffdino (848658) | more than 2 years ago | (#37226842)

This is how you retain top talents in a company. Tim Cook is no newbie, he has been with Apple since 1998. The guy has proven himself to be capable of running Apple when Steve Jobs was away in the past. Lately, he's been leading the delegate in negotiation with China Mobile. As an Apple shareholder, I have no problem with this compensation plan: it's clear, easy to understand, and has a long term outlook.

Re:This is not handcuff (0)

u38cg (607297) | more than 2 years ago | (#37226984)

You should have a problem with it; this is the board of your company voting to give bits of it away without asking you. Board members, as a rule, are a craven breed whose only real interest is the continued existence of the board so that they can continue to receive lucrative payments for it.

Re:This is not handcuff (1)

icebraining (1313345) | more than 2 years ago | (#37227212)

You should have a problem with it; this is the board of your company voting to give bits of it away without asking you.

Well, according to a measure passed in February, the election of new directors (like Cook) has to garner a majority of the votes by the shareholders.

Re:This is not handcuff (0)

Anonymous Coward | more than 2 years ago | (#37227172)

This is how you retain top talents in a company.

Well obviously yes, that's why it's called a handcuff. It's to keep him there.

Oh No (0)

ZirconCode (1477363) | more than 2 years ago | (#37226876)

Oh No! He actually has to care about the company! He can't just take the money and run away. This sure is horrible.

Re:Oh No (0)

Anonymous Coward | more than 2 years ago | (#37227306)

He can't take THIS money and run. This is just THIS bonus package. There will be plenty ID other money he can take and run. Have you never heard the name Fiorina?

That Apple "Experience" (1)

Vinegar Joe (998110) | more than 2 years ago | (#37227122)

Don't come cheap!

Classless. (1)

Seumas (6865) | more than 2 years ago | (#37227140)

It's pretty fucking distasteful that Slashdot chose to link to the TMZ photos. Let a dying man have a little dignity and stop acting like fucking bloodthirsty creeps. Fucking sickening.

Re:Classless. (0)

Anonymous Coward | more than 2 years ago | (#37227352)

I hadn't seen the photo until now. To me, that image reveals the depth of the obsession this man has.

Re:Classless. (1)

Bing Tsher E (943915) | more than 2 years ago | (#37228058)

Yes. In those photos, Jobs looks like a crack dealer. Not the high-class cocaine dealer he was back in the 80's before the crack epidemic really kicked in.

Can he sell covered puts... (2)

doug141 (863552) | more than 2 years ago | (#37227166)

and monetize this asset anytime?

Re:Can he sell covered puts... (3, Insightful)

Ancil (622971) | more than 2 years ago | (#37227318)

No, because you can't cover a put option with stock you don't own. He won't own any of this stock for 5 years.

Recall that US-style puts can be excercised any time before they expire. He also can't cover a "European" put option, because there's no guarantee he'll keep working for Apple and own the stock 5 years from now.

Re:Can he sell covered puts... (1)

Nexx (75873) | more than 2 years ago | (#37227858)

it's a small thing, but ITYM covered calls.

not every picture is a fake, but... (0, Redundant)

Anonymous Coward | more than 2 years ago | (#37227176)

...on reddit, somebody posted this link: http://i.imgur.com/WV5Y0.jpg

Mod parent up (1)

goombah99 (560566) | more than 2 years ago | (#37227226)

picture has been alerted

Exactly what is wrong with America... (1)

Anonymous Coward | more than 2 years ago | (#37227228)

Assuming he works 10hrs a day everyday for next 10years that is over 10k and hour on top of whatever his normal salary is.

This is a perfect example of the pure stupidity in our system today. Jobs didn't need a huge bonuses to keep him in his position. He did it because that is who he was and that is what he loved doing. This slaves this fellow to the company and to the companies worth as expressed by it's stock value.

If at sometime he starts feeling like he wants to leave he won't. If the share price starts to slide, he will feel desperate. At expiration (first 1/2 in five years) all he his going to really care about is the market value of the company and not the fundamentals. Is that what we really want?

Research has shown that large bonus simply don't work (google why bonuses don't work) except for the most mediocre of tasks.

Jobs death picture (2)

iTowelie (1118013) | more than 2 years ago | (#37227250)

That has to be one of the worst pro Photoshop jobs I have ever seen. Since when does Steve Jobs wear dresses? Like one of the ACs pointed out, a Redditer posted an analysis of the picture. Also, since when does /. link to TMZ as a reliable source?

Real or not (1)

arcite (661011) | more than 2 years ago | (#37227432)

The man is sick. The mind is willing, but the body is flesh and mortal.

BOY NEEDS TO GET STONED PRONTO !! AND A LOT !! (0)

Anonymous Coward | more than 2 years ago | (#37227284)

And move next door to a White Castle !! Maybe he could just move into the White Castle !!

Good, but that good? (0)

Anonymous Coward | more than 2 years ago | (#37227348)

I'm sure Tim Cook is good, but is he that good?
By comparison, 383 million dollars would have bought Steve Jobs' services for 383 million years.

Re:Good, but that good? (1)

cforciea (1926392) | more than 2 years ago | (#37227702)

Er, what the hell kind of accounting is that? This isn't about Cook's salary, it is about the value of stocks he will potentially be given. The value gleaned by Jobs via stock was not $1 a year. He owns 5.426 million Apple stocks.

Photo = fake (1)

drdaz (994457) | more than 2 years ago | (#37227446)

I hadn't seen the photo til today either... But I'm not convinced they're authentic tbh.

What is the context of the photo? Why is the man wearing what appears to be a skirt? And why does the skirt look like 2 black rectangles drawn on with MS Paint?

Make no mistake... I really don't want that photo to be authentic.

that poor man (0)

Anonymous Coward | more than 2 years ago | (#37227566)

and they wonder why there is class warfare

TMZ photo (1)

Danathar (267989) | more than 2 years ago | (#37227620)

Hard to know if the TMZ photo is legit or not. It's no like they are beneath photoshopping something to get a headline.

This is entitlement, not incentive (1)

RighteousRaven (998592) | more than 2 years ago | (#37227712)

If he rides the company into the ground and they lose 50% of their stock price in the next 5 years, Tim Cook will get over $100 million from these stocks - that's over and above his salary and other perks. So a $20 million per year bonus for sucking - how does that make sense?

If they wanted to set incentives, he shouldn't be getting STOCKS - he should be getting OPTIONS. They should define their expectations of what a decent CEO should achieve... lets say 400 in a year, 450 in 3 years, and 500 in 5 years. They should then award him plenty of stock options that vest in those intervals and allow him by buy at that price. If he does worse than what a decent CEO should achieve then his options are worthless. If he does better than a decent CEO, he will get rewarded for it.

By awarding STOCKS, they are rewarding CEOs regardless of whether they succeed or not. You cannot reward success without first setting expectations that clearly define what success is, and what failure is.

picture is fake (0)

Anonymous Coward | more than 2 years ago | (#37227750)

... this picture was proven fake on so many forums and publications I can't believe people still link to it, but that's what happens when idiocracy takes its root and TMZ is viewed as a legitimate news source...

2 things I wonder about the Steve Jobs photo (1)

NotSoHeavyD3 (1400425) | more than 2 years ago | (#37227902)

One, is it real or is some photo shop fake. Two, why is he wearing a dress?

Wow! (1)

PPH (736903) | more than 2 years ago | (#37228000)

That's more than 3.8 million HP TouchPads!
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