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
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382

u/tonyle94 Jan 13 '23

Good on him. Better than laying employees off.

79

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.

19

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

12

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?

28

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

9

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.

7

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.

2

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.

3

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