Financial Results
Presswatch: Guardian's take on pay
11/01/12 18:00
The Guardian ran a story this week on pay compensation for Tim Cook, Apple’s CEO. We would be the last people to endorse huge salaries, but the tone and accuracy of this article needs attention.
From the outset, Juliette Garside’s piece is incorrect:
A few problems here. Firstly, Steve Jobs did not work for $5. Jobs received a jet from Apple and generous stock options, which had mixed values. Some proved almost worthless due to a fall in the company’s stock value in the mid ‘00s and some made him a lot of money. As for the comment about Tim Cook being unknown outside Silicon Valley, this seems very simplistic. Cook was Apple CEO twice before August 2011, as he stood in for Jobs when he took sick leave. He was well know to any market watchers, and indeed it was Cooks’ reputation on Wall Street which is one of the reasons that Apple now has such a good financial reputation.
However the line that …”Cook's 2011 rewards, disclosed yesterday, put him in pole position to become the year's highest boardroom earner” is simply untrue. The conditions on the stock options, as stated later in the article, only come to fruition in 2016 and 2021. In fact Garside directly contract’s the earlier point, and states that the (UK) FTSE’s average salary for a CEO is now £5.1m sterling, substantially more that Cook’s USD$1m in 2011, even after you add on his bonuses of $0.9m.
The article seems to use Cook as an example, but misses the point. Cook’s stock options, substantial and huge as they are, do not kick in until 2016, when 50% are released, and 2021, when the final 50% are handed over. At that point, who knows what value they will have. Apple is now above Exxon Mobil as the most valuable company in the US, and it can be argued that this is an investment in Apple and Cook. If he stays with Apple, he will become extremely wealthy. If however he leaves, or he fails and the stock price falls, he may find that his options are worth far less than expected. This is what happened to Jobs in 2003 [see here].
Presumably the reason why this substantial stock option was handed to Cook was to tie him to Apple for years to come. This is a good move. We can all argue about the size of this award, but its true value will only be know in 2016 and 2021.
So for the record, for now Cooks compensation stands at under $2m for 2011, split between salary and bonuses..
From the outset, Juliette Garside’s piece is incorrect:
Apple's late founder Steve Jobs created the world's most valuable company and was paid just $5 in the last years of his life – but his successor Tim Cook, unknown outside
Silicon Valley until his elevation to the top job last summer, has been awarded a $378m (£244m) pay jackpot.
A few problems here. Firstly, Steve Jobs did not work for $5. Jobs received a jet from Apple and generous stock options, which had mixed values. Some proved almost worthless due to a fall in the company’s stock value in the mid ‘00s and some made him a lot of money. As for the comment about Tim Cook being unknown outside Silicon Valley, this seems very simplistic. Cook was Apple CEO twice before August 2011, as he stood in for Jobs when he took sick leave. He was well know to any market watchers, and indeed it was Cooks’ reputation on Wall Street which is one of the reasons that Apple now has such a good financial reputation.
However the line that …”Cook's 2011 rewards, disclosed yesterday, put him in pole position to become the year's highest boardroom earner” is simply untrue. The conditions on the stock options, as stated later in the article, only come to fruition in 2016 and 2021. In fact Garside directly contract’s the earlier point, and states that the (UK) FTSE’s average salary for a CEO is now £5.1m sterling, substantially more that Cook’s USD$1m in 2011, even after you add on his bonuses of $0.9m.
The article seems to use Cook as an example, but misses the point. Cook’s stock options, substantial and huge as they are, do not kick in until 2016, when 50% are released, and 2021, when the final 50% are handed over. At that point, who knows what value they will have. Apple is now above Exxon Mobil as the most valuable company in the US, and it can be argued that this is an investment in Apple and Cook. If he stays with Apple, he will become extremely wealthy. If however he leaves, or he fails and the stock price falls, he may find that his options are worth far less than expected. This is what happened to Jobs in 2003 [see here].
Presumably the reason why this substantial stock option was handed to Cook was to tie him to Apple for years to come. This is a good move. We can all argue about the size of this award, but its true value will only be know in 2016 and 2021.
So for the record, for now Cooks compensation stands at under $2m for 2011, split between salary and bonuses..
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Apple announce record results: $6 billion profit
19/01/11 17:20
Apple have announced record results, with $6 billion profit and revenues of $24.4 billion.
Mac sales exceeded 4 million units for the very first time, with strong sales in laptops. Over 16 million iPhones were sold in the quarter, and the iPad also had its best quarter so far, with 7.33 million units.
iPad sales
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Mac sales exceeded 4 million units for the very first time, with strong sales in laptops. Over 16 million iPhones were sold in the quarter, and the iPad also had its best quarter so far, with 7.33 million units.
iPad sales
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Apple Results: The Headlines
22/07/09 14:21
What now for Eric Schmidt?
09/07/09 11:47
This week Google announced that it would go head-to-head with Microsoft by launching its own operating system, Chrome OS. This follows on from Google's new web browser, Chrome, which launched this year. However, this also raises the question of the future role of Eric Schmidt, Google CEO.
Schmidt has been a board member at Apple since August 2006. However Apple have said that Schmidt leaves the room during Apple's board meetings when the iPhone is being discussed. Google's own mobile OS, Android, means that Schmidt has excused himself from these discussions to prevent being accused of a conflict of interest. The question now is, will he also have to be outside the room during discussions about the Mac OS, a rival to Chrome OS?
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Schmidt has been a board member at Apple since August 2006. However Apple have said that Schmidt leaves the room during Apple's board meetings when the iPhone is being discussed. Google's own mobile OS, Android, means that Schmidt has excused himself from these discussions to prevent being accused of a conflict of interest. The question now is, will he also have to be outside the room during discussions about the Mac OS, a rival to Chrome OS?
.Apple reports record quarter- some notes...
22/01/09 14:00
Apple have reported another record quarter, with $1.61 billion profit for Q1 2009. Revenue was a record breaking $10.17 billion, half a billion higher than the same quarter in 2008. Cash and short term investments stood at a staggering $28 billion, up $3.6 billion in the quarter.
Here are a few points we noted from the financial conference call....
Here are a few points we noted from the financial conference call....
Presswatch: Bloomberg way off the mark...
15/01/09 22:49
In all of the coverage of Steve Jobs’ leave of absence, we found one article particularly distasteful. This is a report from Bloomberg, entitled, “Steve Jobs May Have Pancreas Removed After Cancer”. The article is based on the premise that Jobs may have his pancreas removed after the a return of the cancer he suffered from in 2004.
I found the article distasteful on a number of levels. Firstly it is based on pure speculation; there is currently no evidence to suggest a return of Jobs’ pancreatic cancer, and suggesting this is pure guesswork. .
I found the article distasteful on a number of levels. Firstly it is based on pure speculation; there is currently no evidence to suggest a return of Jobs’ pancreatic cancer, and suggesting this is pure guesswork. .
Steve Jobs issues statement about his health
05/01/09 16:37
Apple CEO suffering from hormone imbalance
Today Apple CEO, Steve Jobs, issued an open letter to the Apple community, giving details of his ill-health. It sought to reassure the Apple, and wider business community, of his health position. Jobs has admitted that he is suffering from weight loss brought on by a hormone imbalance, but has aimed to dismiss rumours of a return of his cancer..
Today Apple CEO, Steve Jobs, issued an open letter to the Apple community, giving details of his ill-health. It sought to reassure the Apple, and wider business community, of his health position. Jobs has admitted that he is suffering from weight loss brought on by a hormone imbalance, but has aimed to dismiss rumours of a return of his cancer..
