Filed under: Apple Corporate, Apple Financial, Steve Jobs
Jobs total compensation a bit more than $1 per year
Steve Jobs' $1 per year salary is famous, but as everybody already knew that's hardly the whole story. According to Forbes, Jobs was the highest-paid CEO in 2006 in terms of "total compensation," taking home approximately $646 million (which is almost double number two on the list)! This was apparently mostly by way of some of those (in)famous stock options, which is pretty much standard for executives these days.[via MacNN]
Reader Comments (Page 1 of 1)
Chuck Konfrst said 8:39AM on 5-04-2007
I'm not so sure Forbes has their calculators sharpened...
http://blogs.business2.com/apple/2007/05/did_apple_steve.html
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Bratling said 8:47AM on 5-04-2007
It's "paid", not "payed", by the way!
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Rob said 9:19AM on 5-04-2007
Not to be hugely picky, but "paid." Not "payed".
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tivoboy said 10:17AM on 5-04-2007
These 1$ pay packages are a joke. It is just a way for the individual and the company to avoid paying taxes to the government. The individual pays only the current 15% cap gains tax on the options, but NO payroll tax and NO medicare, state income tax, nothing.
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mentalsticks said 10:38AM on 5-04-2007
$646 million for, say, 360 12 hr working days, comes to ~ $2500 a minute.
Lets hope that money doesn't bring you happiness, otherwise I'd have to deal with the fact that there was someone on the planet who was so, so much happier than I...
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Aron Trimble said 10:51AM on 5-04-2007
haha... man Steve Jobs makes more money per minute than I (net) make per month!
*hangs head and laughs a sad, tear-filled laugh...*
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Al Willis said 11:06AM on 5-04-2007
The Forbes article is crap. Steve has yet to sell any Apple stock since his return in 1997.
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SubGenius said 12:29PM on 5-04-2007
$646 million for the last five years of work
=$129 million a year
These are stock options that were granted to him 5 years ago.
5 years ago AAPL stock went for $10 a share
Today it is about $100 per share.
So Steve received $12.9 million worth of stock.
He has worked hard to raise it's value so he deserves every penny of it.
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mentalsticks said 1:01PM on 5-04-2007
@SubGenius:
No, he doesn't deserve every penny of it. No one *deserves* that kind of money when all over the world people can't afford to feed themselves or their children, or pay for a roof over their head, or get medication for even the simplest of diseases. This kind of pay is just ridiculous, whether it's Steve Jobs, Bill Gates, Sergei Brin, Warren Buffett or Steve Balmer who's making it. I mean, these people could give away 95% of what they own and hardly even notice it.
Please don't start talking about shareholder value, 'coz that's just one way of looking at the world.
[phew, feeling better now]
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jbisrael said 1:23PM on 5-04-2007
mentalsticks - he deserves every penny of it. go spew your socialist crap elsewhere.
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Thomas said 1:26PM on 5-04-2007
By my calculations he was paid $1bn.
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SubGenius said 1:34PM on 5-04-2007
@ mentalsticks
There is enough food in Africa to feed everyone there.
There is enough food in India to feed everyone there.
People aren't starving because Steve is making money.
Socialism isn't the answer and Capitalism isn't either.
The problem is with people.
You can pass all the laws you want to stop this or that.
But you can't make people love each other.
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Jeffbbs said 1:39PM on 5-04-2007
That's right Mentalsticks, don't care about other people. Just look out for yourself. Make sure you get yours! And those people in other countries living in desperate poverty? Just Lazy! Keep all that money, steve, make as much money as you can! money money money! You deserve it!
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mentalsticks said 2:11PM on 5-04-2007
oops... I never wanted to start an argument like this.
I am not a socialist. I just think that some things in this world are just plain ridiculous, like the fact that people are dying of hunger while others have so much money they don't know what to do with it. Now I don't blame Mr Jobs for making so much money, but I think it's a good thing if you don't take this kind of news for granted. I'm not saying it's bad, I just think it's a good thing to stop and think for a minute about the fact that he makes the same amount of money anually as the entire population of a small African country.
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Al Willis said 4:04PM on 5-04-2007
It doesn't matter anyway--Steve may own many millions of shares of Apple stock options, but he's never exercised them or sold any shares.
It's not interesting to say "Steve Jobs' salary is $1 and even though he's owns millions of dollars worth of shares--given to them when they were worthless--he's never excercised any of them or sold any shares of Apple stock."
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tivoboy said 4:58PM on 5-04-2007
I dont really mind so much, since I've been holding the stock since 10$, and 20$, and 40$, and 55$, but it still ends up being a lot.
As pay for performance goes, he is WAY ahead of others, where pay has outpaced performance a lot.
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Steverino said 6:54PM on 5-04-2007
The individual pays only the current 15% cap gains tax on the options, but NO payroll tax and NO medicare, state income tax, nothing.
That's not always true. It depends on the type of options offered (Qualified vs. Non-quals), and how they are exercised.
A company I was at offered non-qualified stock options. The proceeds from them were taxed as W-2 income, and subject to Social Security (6.2% up to the cap) adn Medicare (1.45% for the full amount).
As a result, it only made sense to exercise them in a same-day buy-sell transaction. It does make some sense to buy and hold qualified options, but you have to be able to live without the cash to exercise them for over a year.
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Dennis said 4:36PM on 5-07-2007
There are so many things incorrect with this post it's ridiculous.
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