CEO’s giant salary justified
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For months now, several important streets across America have been filled with the “99 percent,” protesting issues such as CEO salaries of, oh say, $378 million. CEO of Apple Inc. and successor to Steve Jobs, Tim Cook, has been awarded such an income.
When compared to his predecessor’s annual salary of one single U.S. dollar, yes, it may seem something to scoff at. But before we pick up our torches and pitchforks for yet another multi-million dollar paycheck, let some things be considered.
Start with the fact that Jobs had a very modest annual salary, but the man was not exactly struggling to make ends meet.
According to Forbes, Jobs owned 5.426 million shares of Apple valued at $2.17 billion, on top of his cut of the 138 million shares of Disney that he gained when he sold Pixar, worth $4.3 billion. In conclusion, Jobs had a net worth of $7 billion as of September 2011. Tim Cook did not.
Apple has offered Cook $378 million, which now seems smaller after looking under Jobs’ mattress, but take a close look at this contract. One important fact that seems to get lost is that most of this money comes in restricted stock units, one million of them to be exact.
The Securities and Exchange Commission’s filing for Cook’s contract clearly states that half of the million shares would be granted to him on August 24, 2016, and the other half exactly five years later in 2021.
These shares make up about $377 of the $378 million dollar contract and are not part of a per annum; Cook’s annual salary is actually $900,000 per year. Thirteen-year-old Jaden Smith made more for the Karate Kid films he starred in.
Apple has revolutionized technology in recent years. The innovative employees deserve to be paid accordingly. Additionally, Cook’s salary does not even cross the threshold into Forbes’ 100 highest paid CEO’s.
So rest assured, Cook will not be raking in nearly $400 million per year, and, no, Forbes won’t have to tally yet another billionaire. wCook has a lot of work to do in order to continue the legacy left by billionaire Steve Jobs, and he is not nearly the highest paid CEO.
Rants towards his financial compensation should be redirected toward other business elites, with salaries in the hundreds of millions, not for those who make six figure incomes. Not to say that he isn’t making a lot of money, but there are much bigger fish to fry.