back to article Apple's Tim Cook gets one million reasons to stay on as CEO

Apple has given its new CEO, Tim Cook, a million reasons to stay on until August 24, 2021. As required by Securities and Exchange Commission rules, Apple filed a Form 8-K on Friday to officially inform stockholders of company leadership changes that might affect stock performance. Oh, if you haven't heard, Steve Jobs resigned …

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Paper value is meaningless ...

... the real tale of the tape will be when a principle sells a large block.

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This is a "reply to" my own first post in this thread ...

I'm referring to my post:

http://forums.theregister.co.uk/post/1157720

Hopefully useful input for ElReg ... Side-note: this edge-case might not be valid because my actual first post was nixed :-)

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United States of Apple?

Hmm, well, using that 4029% rate, that makes the market cap of Apple in 2021 about 14.682 Trillion

Now US GDP in 2010 was 14.5265T, lets assume a 3% growth rate, so that makes US GDP in 2021 20.1081T

So Apples market cap will be 73.02% of GDP. Somewhere around there maybe they'll change the US flag to the Apple logo? :)

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Pint

Market Forces (to coin a phrase)

Anything sold is worth what someone else is prepared to pay for it.

Any other value is speculation/wishful thinking or whatever.

Beer? - well, it IS Saturday...

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Mushroom

dream on, Tim...

... if that comes to pass, Apple Inc will have a market cap of $15 trillion. And to do that, it will have to take over several global industries. Or maybe Apple will be the de facto world government by then.

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Joke

World Government

Election slogan: iPhone and iVote.

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Apple bubble.

It'll pop soon enough.

"meh" Icon please.

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JDX
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why work?

If you are earning $10s of millions a year, it's hard to see why not retire once you get to $50m or so... do they want/need the money or just never think about retiring?

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Stop

There's the other thing

(a) you'd get really bored- with less than a hundred or so million you could run out of cash pretty quickly (if living a lavish lifestyle).

(b) at tens-of-millions you're barely 'rich' by today's standards. Try buying a superyacht for a whole decade's earnings and you'll be at the shallow end of that pool. And when you're rich you'll associate with people like you- who'll also be rich. So your baseline for how well off you're doing shifts as well.

(c) Maybe, just maybe, the guy might enjoy his job!

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Thumb Up

Well said...

Couldn't agree more, JDX. I've long realised I could never be a Jobs, Gates or Buffet.

Long before I was worth a billion, I would have thought "Sod this for a game of soldiers - I have enough to not have to come to work any more..."

It would be nice to have a few millions to give away though - but to real deserving causes, not just todays PC favourite.

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Joke

Hmm ...

> (c) Maybe, just maybe, the guy might enjoy his job!

In that case he should surely be paying, not be paid ?

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Anonymous Coward

The other Steve did just that.

Steve Wozniak quit Apple after a similar revelation following a microlight-aircraft accident. I can't find the article now, but while lying in his hospital bed, he says that he thought to himself: "I've over a quarter of a billion dollars, and I'm in my thirties. There's nothing I plan to do for the rest of my life that needs more money than that. Why should I go back?"

Granted, this was in the early 1980s, when a quarter of a billion dollars was a lot of money... ;)

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Happy

Quarter of a billion...

...still is a lot of money!

Hell, I'd settle for quarter of a Million...just being mortgage-free would be a serious life improver for most of us.

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Meh

Shareholders?

And the Apple shareholders are ok with this transfer of wealth of $350 million from their company to his pocket? I guess so, if they're not complaining about it...

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Stop

RE: Shareholders?

How is this any different to any other megacorp? If the guy delivers results (which he kind of has been doing already) then where is the problem? It's not like Apple are hemorrhaging cash; far from it. If anything this deal is a show of faith from Apple's board in Tim Cook. It is a positive thing. I guess that since you almost certainly have no real concern, then of course you'd look at it negatively.

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Unhappy

What is the point?

If you have enough money to comfortably live off just the interest for the rest of your life, what is the incentive to actually do anything at all? If you do things for other reasons than money, why bother with it once you have 'working capital'?

Sorry, I just don't get it at all.

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WTF?

@JDX

A friend of mine lost his job from a successful and profitable company which was closed by it's new merkin owners. When asked why close down a company that was making money he responded - it's not how much money you make that matters. It's how much more money you make.

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Stop

You're are missing the point.

This has nothing to do with giving Tim some huge allotment of money.

This doesn't even have anything to do with a performance bonus (although indirectly it does apply).

As the article and various of you all note, his regular compensation is fair enough already.

No, this is all about succession planning. The board wants to guarantee a stable leadership figure over at least the next 5, preferably 10, years. This is for both public image and shareholder confidence, as well as to bring up and train the next executive team in "the Apple way".

And for that, no amount of money would be too much. The fact that it is a relatively modest amount considering Apples profit, marketshare and "earnings potential" means that there are already other compensation plans underway.

Whether you agree with the Apple ethos or not doesn't matter. The fact remains it is one of the largest companies in the world. Successfully leading such a beast is not only terribly difficult, but deserves compensation commiserate with the responsibilities.

Karl P

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Hmmm

I find it hard to believe that the right person for the job would need such a reason to stay?

Surely loving the company and the job is enough to stay? it's the reason Ballmer won't go unless forced to. He's often shouted how he loves the company.

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Anonymous Coward

Whoosh!

Giles, this is nothing to do with Tim Cooks regard of Apple. This is the board telling investors and Wall St generally that they believe that Tim Cook is the right man going forward and that they are prepared to commit to him on a massive financial scale. Money is the language of investment; merely shouting, clown like, of your love for the company means nothing in business terms.

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@Giles Jones

Cook probably doesn't need this money to make him stay. This is about convincing everyone else that this is a 10 year plan and not a short term patch up until they find someone better.

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Happy

Past performance

If he continues to deliver results like in the past, that bonus is not gross.

Wall-Street has paid much more to people who destroyed more value than he helped create.

It's probably better to let Scott and Phil do the presentations, though ;-)

Even Phil has gotten better at it over the last key-notes - and I though he was hopeless.

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Anonymous Coward

value?

$15,454,438,200 in 2021? That might just cover the price of a sandwich if he doesn't want any extra fillings or sauces.

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WTF?

Even if he decimates the current stock value ...

he get $38 million - a magnificent reward for such a failure

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Headmaster

Pedant Alert

Actually if he decimates the stock value the bundle will be worth $345m.

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Headmaster

Pedant alert.

In literal terms decimate means reducing by a tenth not to a tenth.

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Trollface

59 million a year salary?

Hell, for that sort of money I'd even take a job with Apple.

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Trollface

at least

the fanbois know where their money is going *snicker*

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