r/technology • u/geoxol • Jan 13 '23 • Bravo! 1 Helpful (Pro) 1

Apple CEO Tim Cook to take more than 40% pay cut Business

https://apnews.com/article/technology-apple-inc-tim-cook-business-d056553b10120c4a968b562cb7ece5d2
39.1k Upvotes

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387

u/tonyle94 Jan 13 '23

Good on him. Better than laying employees off.

185

u/[deleted] Jan 13 '23

[deleted]

51

u/gnocchicotti Jan 13 '23

Smartphone market and PC market worldwide is absolute trash right now and projected to get worse before it gets better. To me it looks like the board is being responsible and proactive here.

90

u/[deleted] Jan 13 '23

[deleted]

36

u/dynamojoe Jan 13 '23

wet cat shit

you mean iFertilizer?

-1

u/SmokelessSubpoena Jan 13 '23

Now with less features, but a cool Apple Image is on the shitbags, so the added costs will require a 20% increase in cost, again, no new features, but to keep up with society, you'll need to buy the NEW iFertilizer

1

u/SuburbanHell Jan 13 '23

proprietary shitbags

1

u/Coders32 Jan 13 '23

Introducing the second generation of the ifertilizer, with features like dry, white, and crumbly. I’d now like to take a moment to talk about the environmental impact of our products. Due to the decreased weight of dry cat shit, we can now ship twice the amount of cat shit for half the emissions!

9

u/FartingBob Jan 13 '23

Every consumer tech company would start selling their own wet cat shit soon after anyway.

4

u/BulbusDumbledork Jan 13 '23

samsung: haha yall stan those idiots? our cat shit is still dry💅

samsung: hey guys our shit wet now👉👈😀

4

u/unledded Jan 13 '23

Why did they do it? The article just says they are changing the way they calculate his compensation, and that Tim had recommended this to some degree. I didn’t see anything about the reasoning or even how the new amount was calculated. (Not trying to be a smart ass, I legitimately can’t figure it out from the article and am now curious)

1

u/KrauerKing Jan 13 '23

Same reason Iger at Disney is doing the same thing. It will make the company look progressive and like they are taking cuts to be more in line with the poor employees while having so much in the bank that they will never ever have to worry about money for them or their children ever again.

1

u/lol_ok123 Jan 14 '23

No they are cutting it to counteract the huge raise he got during the tech boom during the pandemic

1

u/muchosandwiches Jan 13 '23

Where can I pre-order this wet cat shit you speak of? I want to be the first one in my social group to have it.

1

u/[deleted] Jan 13 '23

[deleted]

1

u/muchosandwiches Jan 13 '23

My statement is indictment of society's failings, not Apple's.

1

u/idcaboutdownvotes Jan 13 '23

What? You do realize Apple is more than just iPhones and Mac's right? That's only a fraction of their revenue.

1

u/gnocchicotti Jan 13 '23

Yeah, a fraction like 3/5

46

u/TheoryOld4017 Jan 13 '23

This will have zero impact on whether Apple lays off employees or not.

9

u/JustASFDCGuy Jan 13 '23

Which is fine, because his compensation adjustment has nothing to do with layoffs.
 
Apple is doing just fine. His compensation has just gotten ridiculous.

1

u/[deleted] Jan 14 '23

This was done in preparation for when Apple lays people off. "Aww, well, the CEO took a paycut, guess they did everything they could do."

81

u/Dredly Jan 13 '23

They have like 66 Billion in cash sitting in an account. Im sure they could avoid layoffs pretty easily if they wanted to

3

u/[deleted] Jan 14 '23

Believe me, that cash doesn’t go to any of us employees.

18

u/TheRealEddieMurphy Jan 13 '23

Way more than 66 billion….

68

u/My_Nama_Jeff1 Jan 13 '23

Their cash on hand for their balance sheet in 2022 was 48.304 billion

11

u/FurryFeets Jan 13 '23

How is that amount of cash actually held? Is it truly in "an account"? That much cash can't be FDIC insured, can it?

24

u/BrettEskin Jan 13 '23

It’s in multiple accounts and is over the amount to be insured by the FDIC.

21

u/this_barb Jan 13 '23

Its in their TD Bank free checking account

10

u/johns2289 Jan 13 '23

Hopefully they got the $250 bonus when they opened it

1

u/MashTheGash2018 Jan 13 '23

The moved to SoFi for that sweet sweet 3.75 APY

3

u/ThermalPaper Jan 13 '23

Most likely T-bonds with a couple bil spread out over multiple accounts. No way the federal government is insuring that, that's why these corps have entire accounting departments to manage their money.

2

u/Poincare_Confection Jan 13 '23

Usually money market accounts, since those count as cash in accounting due to being able to liquidate the accounts so quickly.

1

u/gophergun Jan 13 '23

FDIC is $250K/depositor.

1

u/TravellingReallife Jan 13 '23

A sock under Tim‘s pillow.

-2

u/danieljackheck Jan 13 '23

After a stock buyback worth $90 billion. They also have well over $100 million tied up in investments. The reason they don't have as much cash as you would think is because they stash it other places.

5

u/charklaser Jan 13 '23

Making investments isn't stashing cash in other places.

0

u/danieljackheck Jan 13 '23

It is when it's not investing directly in your own business.

4

u/jmlinden7 Jan 13 '23 edited Jan 13 '23

They aren't laying people off because they're afraid of going bankrupt. They're laying people off because they don't have any work for those people to do. Why would any organization continue to employ people that it doesn't actually need?

The reason their CEO took a pay cut isn't because they're running out of money, it's a punishment for hiring a bunch of people that they didn't actually need (since appropriate staffing is one of the CEO's responsibilities). He messed up part of his job and is taking a pay cut as punishment for it.

5

u/UlrichZauber Jan 13 '23

They aren't laying people off because they're afraid of going bankrupt. They're laying people off because they don't have any work for those people to do.

When did Apple do any layoffs? I can't find any news on this topic.

4

u/Philly139 Jan 13 '23

They haven't as far as I'm aware. Think the op made that up.

1

u/Dredly Jan 13 '23

The person I replied to was implying the reduced pay was to prevent layoffs

1

u/jmlinden7 Jan 13 '23

Avoiding layoffs has nothing to do with ceo pay. CEOs are paid to make good decisions. Hiring too many people is a bad decision, which then results in both the CEO getting punished and all those unneeded people getting laid off

The actual layoff is a good decision since they don't need those people, which is why layoffs often happen concurrently with CEOs getting highly paid.

1

u/emefluence Jan 13 '23

Why would any organization continue to employ people that it doesn't actually need?

If it thinks the downturn will not last very long it may make sense to try and retain great staff rather than re-recruiting and re-training when things pick up. There's a significant lead time and cost to hiring high quality staff. It might also stop top staff going to their competitors. But yeah, otherwise they're going to cut you loose and sad as it is that just makes sense.

1

u/lol_ok123 Jan 14 '23

No they are cutting it to counteract the huge raise he got because of the tech boom during the pandemic which does not accurately represent Apples growth

3

u/downonthesecond Jan 13 '23 edited Jan 13 '23

Apple Inc. said in a regulatory filing late Thursday that Cook’s target total compensation is $49 million for 2023, with a $3 million salary, $6 million cash incentive and $40 million in equity awards.

If he gave up compensation, $49 million split between 164,000 employees is just under $300 each.

At an average salary of $131K/year, 374 jobs could be saved instead.

3

u/roofuskit Jan 13 '23

Still going to lay off people. All these tech companies over hired and were hoarding workers they never needed.

6

u/BraveSirZaphod Jan 13 '23

There's this narrative that, if only the greedy executives wouldn't be paid so much, then all the average workers could be paid enough to afford a nice suburban home with a picket fence and 2.5 kids like a very rose-tinted impression of the 50s.

The numbers basically never work out that way. I remember crunching some numbers with McDonald's at one point where, if you just fired the executive team, you could give every employee a raise of like $100. Executives do get paid a lot, and there are questions that can be asked about how deserved that really is, but executive pay is not the primary source of low worker pay. Amazon could pay all execs nothing, and that wouldn't magically make the job of a warehouse worker substantially more valuable, nor would redistributing exec pay constitute a significant change to their pay.

1

u/AHappyMango Jan 13 '23

Lmao that’s not why his pay was cut. His cut is a fraction of their operating costs

-5

u/Okichah Jan 13 '23

He didnt “take” a paycut, his compensation is based on equity and the economy is in absolute shambles.

0

u/mostlygroovy Jan 13 '23

Why is that even an option?

1

u/Buckus93 Jan 13 '23

Realistically, the amount he gave up would only cover about 100 employees' salaries.

And probably most of it is in stock, so it's not like it costs the company real money.

1

u/Onemoretime536 Jan 13 '23

They probably will still lay off employees

1

u/tiredmommy13 Jan 14 '23

Tim Apple is the man