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Apple chief executive Tim Cook gets $750m payout

bbc.com

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Re: Apple chief executive Tim Cook gets $750m payout

#161

Post by eptcyka »

mombul wrote: post #88
Aeolun wrote: post #72

Earlier quoted context omitted.

> by their scarcity By their perceived scarcity Chances are that anyone other than Tim could have done just as well. Still, this is over 10 years, and Apple shares have increased in value by 1900%. If they were still the same value he’d have gotten 40M, for about 4M per year. Which is much more reasonable. I still think it’s high, but in line with what others get.

So the fact that Apple's share price has increased 1,200% since he took over is just a coincidence?

I think it's laughable to assume that it was only Tim Cook who contributed to that. Indeed, where would we be if it wasn't for these handful of superhuman geniuses.

Re: Apple chief executive Tim Cook gets $750m payout

#162

Post by refurb »

akie wrote: post #69
spottybanana wrote: post #58

Earlier quoted context omitted.

> My question is: how is Tim so productive that he does roughly 160,000 people’s work, or 1/8th of Foxconn’s total workforce? [2] /s Nobody has been making these productivity claims to begin with, but leftists commonly use productivity vs salary to ridicule CEO compensation. CEOs are paid for numerous reasons, for example board wants to trust the person with billions worth of assets which makes it sensible to pay cer…

You are justifying someone being paid $750m. No one needs that much money. No one. Why are you defending this? It's obscene. Really reminds me of this https://i.kym-cdn.com/photos/images/original/002/147/150/e2c...

You want to go down that path? Do tech works in SF “need” $500k compensation packages?

Re: Apple chief executive Tim Cook gets $750m payout

#163

Post by robin_reala »

nvilcins wrote: post #79
beckman466 wrote: post #46

So according to this 2018 article by The Verge [1], Foxconn workers producing iGadgets in China earn on average $390.16 per month. Times that by twelve and we find that workers earn $4,681.92 per year on average. If we divide Tim's $750,000,000 bonus/payout this year by that $4,681.92 yearly Foxconn salary, we get 160,190 My question is: how is Tim so productive that he does roughly 160,000 people’s work, or 1/8th of…

Adding two _trillion_ dollars of net worth sounds pretty productive to me.

Out of interest, how much of that two trillion dollars do you think is directly attributable to the role of CEO?

Re: Apple chief executive Tim Cook gets $750m payout

#164

Post by sebzim4500 »

ahtihn wrote: post #107
rglullis wrote: post #59

Earlier quoted context omitted.

When will we learn to stop making these silly calculations about "productivity" and understand that people are paid not by the value of their work, but by their scarcity? Any factory in China can replace most of their 160k employees overnight if they wanted to. How many Tim Cook's do you have lying around?

> How many Tim Cook's do you have lying around Probably thousands? Just put a job ad for "Apple CEO" out there, set pay at a generous 10 million/year and I'm pretty sure you won't have issues finding qualified candidates. I really don't think Apple's valuation would change much if Tim Cook is replaced, so I don't see what justifies such a large bonus.

Does Tim Cook staying around for another year mean the stock is 0.03% higher than it would be otherwise? If so, this is a wise decision from the Apple board.

Re: Apple chief executive Tim Cook gets $750m payout

#165

Post by Grustaf »

ahtihn wrote: post #129
Grustaf wrote: post #92

Earlier quoted context omitted.

No matter how you look at it, a CEO that earns less than 0.1% of the shareholder value created under his watch can’t reasonably be called overpaid.

It depends entirely if he's actually responsible for that created value. Maybe he didn't actually do anything special that anyone else couldn't have also done. In that case why would he deserve that much money?

While that is obviously a ludicrous idea, as a shareholder I don't really care if someone else also might have been able to do it. The fact is that Tim Cook DID preside over perhaps the most monumental value creation in corporate history, so I don't begrudge him the money.

To be honest, I wouldn't even blink if he was paid 10 times more, and I don't even like him.

Re: Apple chief executive Tim Cook gets $750m payout

#166

Post by avianlyric »

ahtihn wrote: post #107
rglullis wrote: post #59

Earlier quoted context omitted.

When will we learn to stop making these silly calculations about "productivity" and understand that people are paid not by the value of their work, but by their scarcity? Any factory in China can replace most of their 160k employees overnight if they wanted to. How many Tim Cook's do you have lying around?

> How many Tim Cook's do you have lying around Probably thousands? Just put a job ad for "Apple CEO" out there, set pay at a generous 10 million/year and I'm pretty sure you won't have issues finding qualified candidates. I really don't think Apple's valuation would change much if Tim Cook is replaced, so I don't see what justifies such a large bonus.

I think this is ignoring the risks associated with such a change. You might find people qualified on paper, but you really don’t know how that translates into real world performance until you try it.

The risk of getting that wrong and accidentally destroying billions of dollars of shareholder value (don’t like the term, but it seems appropriate here) is very high (low likelihood, extremely high severity).

As a board member, why would you take that risk, when not taking the risk is so cheap? Ultimately I don’t think the risk weighted expected return on finding a cheaper CEO is greater than just paying Tim whatever number he pulls out of his arse. I suspect expected return is actually substantially lower (probably very negative) than what Tim gets paid.

Re: Apple chief executive Tim Cook gets $750m payout

#167

Post by bohemian99 »

ahtihn wrote: post #107
rglullis wrote: post #59

Earlier quoted context omitted.

When will we learn to stop making these silly calculations about "productivity" and understand that people are paid not by the value of their work, but by their scarcity? Any factory in China can replace most of their 160k employees overnight if they wanted to. How many Tim Cook's do you have lying around?

> How many Tim Cook's do you have lying around Probably thousands? Just put a job ad for "Apple CEO" out there, set pay at a generous 10 million/year and I'm pretty sure you won't have issues finding qualified candidates. I really don't think Apple's valuation would change much if Tim Cook is replaced, so I don't see what justifies such a large bonus.

Thousands seems high for the largest company in the world with potentially the most complex supply chain ever assembled. And that doesn't even mention the political issues that need to be navigated.

Your choices I imagine are the other Apple executives and the CEO of another International technology and/or manufacturing (potentially) company.

Re: Apple chief executive Tim Cook gets $750m payout

#169

Post by PeterisP »

Thaxll wrote: post #41

No matter how big is Apple is today, $750m is an obscene amount of money. Don't understand people that can justify that.

IMHO it does matter how big Apple is today, because that's the appropriate context, that's the size of the pie that's being divided and the size of value creation for which he's being compensated. The payout is less than 0.05% of the value increase of Apple under Cook's leadership. Many other people played a hand in it, but it seems to me quite plausible to attribute at least 1/1000th of that growth to Tim Cook personally.

Re: Apple chief executive Tim Cook gets $750m payout

#170

Post by MikeLumos »

DasIch wrote: post #61
vmurthy wrote: post #38

From the article : "In 2015, Mr Cook said he would give away his entire fortune before he dies, and is known to have donated tens of millions of dollars to charity". Success during one's life , paying it back to make the society a better place once gone. Take a bow, Mr Cook. What more can one ask for in a lifetime :)

Rich people spend money on charities they like. They change society the way they want it to change that does not necessarily make society a better place nor is it necessarily what most people want. If he had to pay all of this on taxes, society could decide how to use that money and it would be just as much, if not more "a better place".

Why does everyone think that they know better how to spend other people's money than the people who have earned it?

Somehow the people who didn't have the intelligence and discipline to spend decades successfully doing things that make them rich are so sure that they would be able to do better with their (totally hypothetical) wealth than the people who did.

Everyone loves to claim some kind of moral superiority over the billionaires, but I don't see these critics spending a significant portion of their wealth on charity.

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