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

81% Upvoted

3.9k comments sorted by

View all comments

5.0k

u/SLAV33 Jan 13 '23

If this happened instead of them laying off 100's or 1000's of employees good on him and Apple.

532

u/norcaltobos Jan 13 '23

Apple hasn't really slowed up much on hiring. I support them as a recruiter and of all of the large tech companies, their hiring has slowed down the least.

464

u/squidonthebass Jan 13 '23

Anecdotal, but my brother-in-law who works for them said they go out of their way to hire when the job market is like this, it's a good opportunity to hire solid developers who got laid off without needing to pay extra buckets of cash to poach them from another tech giant.

195

u/norcaltobos Jan 14 '23

It's an excellent time to hire if you are a financially stable company in any industry right now. This is the time to get the best talent and the best companies do exactly that.

22

u/kiteguycan Jan 14 '23

You must be thinking tech. Blue collar and blue collar related industries are screaming for people.

13

u/norcaltobos Jan 14 '23

That's always been the case. There are almost always general labor opportunities.

-5

u/dadvader Jan 14 '23

It's weird that generally, white collar work should be paid less than the blue one. But for some reason it is the other way around (unless specialized one ofcourse.) And I don't quiet understand it lol

11

u/tigersareyellow Jan 14 '23

Why do you think white collar work should be paid less than blue collar? That's an odd take I don't think I've ever heard before.

7

u/dkarpe Jan 14 '23

White collar can refer both to highly skilled, specialized fields (such as many tech jobs) and low-skilled clerical/office work. Most of the latter has been automated away, leaving only the higher paid jobs, hence white collar jobs paying more

3

u/norcaltobos Jan 14 '23

It's a lot more complex than that. I can tell you the roles I recruit for require tons of training and experience. You can't just pick it up in a day or hell, even a year. It takes time to master the craft.

→ More replies (1)
→ More replies (9)

2

u/Aururian Jan 14 '23

they are a better company than google although reddit will still suck android cock

1

u/nzox Jan 14 '23

Apple has also lost a ton of employees. The attrition rate was at an all time high last I heard, and seem so many people leave. Lots of nepotism, racism/sexism gets swept under the rug, and employees got sick of empty promises and figured out they can get promotions & more $ elsewhere.

→ More replies (7)

1.6k

u/WestPastEast Jan 13 '23 edited Jan 13 '23

No it’s more indicative of performance based salary and him taking accountability. He’s demonstrating that if the company is not reaching its goals then the CEO shouldn’t be getting huge bonuses.

It may not be benevolent but it’s definitely the right signal to send in a downturning market.

491

u/SLAV33 Jan 13 '23

Even if it's just accountability it's still better than a lot of others.

257

u/immaownyou Jan 13 '23

CEOs have been getting undeserved raises for decades over people that actually do things, it's about time

7

u/Staav Jan 13 '23

Yep and that's how we got to the state of the world we're in today (in Amurica at least)

5

u/McFluffy_Butts Jan 14 '23

100% agree. They’re pay and bonuses are out of control.

In the company I work for, in 2019 our CEO took home 1.5mil not including stock/options that stuff. Just take home was 1.5mil. In 2020 … 2.5mil. In 2021 it was about 4mil.

Tell how anyone’s salary can more than DOUBLE in few years at the same position?

-4

u/HattyFlanagan Jan 14 '23

Also, considering CEOs don't actually do any work. It's like having 1 meeting a day and the rest is all lunches and being catered to.

9

u/SoBitterAboutButtons Jan 14 '23

Gonna need a source on this. Cause they def don't do hard labor, but you are extremely exaggerating

7

u/immortal_nihilist Jan 14 '23

Wow, I can see why people think Redditors are dumb.

0

u/tizzy62 Jan 14 '23

More like redditors think all CEOs are Elon Musk

2

u/magic1623 Jan 14 '23

In the early day’s Musk did a lot of work at Tesla. He’s an egotistical edgelord now, but in the past even the founders of Tesla who don’t like Musk have said he did a ton of stuff.

2

u/Necessary_Quarter_59 Jan 14 '23

Think is your brain when you’re terminally on Reddit

→ More replies (4)

-18

u/plippityploppitypoop Jan 13 '23

You know there’s also somebody who doesn’t understand your job who thinks you don’t actually do things, right?

20

u/immaownyou Jan 13 '23

The amount that they do is severely inflated with their salary. They'll often hold multiple C** positions at the same time, how hard must their job be if that's possible?

Your statement would be valid in any other field, but this. In 2020 CEOs earned 351 times more than the typical worker. Do they work 351 times harder than everyone else?

2

u/AmputatorBot Jan 13 '23

It looks like you shared an AMP link. These should load faster, but AMP is controversial because of concerns over privacy and the Open Web.

Maybe check out the canonical page instead: https://www.cnbc.com/2021/09/15/in-2020-top-ceos-earned-351-times-more-than-the-typical-worker.html

I'm a bot | Why & About | Summon: u/AmputatorBot

5

u/acemptote Jan 13 '23

Difficulty in performing a job may be related to time. And it often is.

But difficulty in performing a job may also be related to accuracy. If a garbage man gets it wrong, the stakes are pretty low. If a doctor gets it wrong, that could mean someone dies. If a CEO gets it wrong l, that could mean thousands of people lose their livelihood.

If a person is able to genuinely serve multiple C-level roles, that could signal that this person has an extremely rare and useful combination of domain expertise, business acumen, and ability to process information from staff members. Just because each role may only take 15 hours a week doesn’t mean it’s easy or not valuable.

Now is that the case in practice? I have no idea. Is it the case that many people actually do hold multiple c-level positions, I kind of doubt it. But the principle above is still useful to consider.

2

u/bustrpoindextr Jan 13 '23

If a CEO gets it wrong l, that could mean thousands of people lose their livelihood.

Eh, CEOs get it wrong a lot and it only seems to matter to a real degree during recessions...

A perfect CEO is a CEO that needs to do nothing because they've appointed the correct people in the appropriate positions.

There's never a perfect CEO, but a good CEO is going to still do very little other than inspirational speeches and lingo bingo at other CEOs for partnerships. I'm not kidding. That's why you can drag and drop CEOs from one business type to another because they don't actually need to know what's happening, they need to know leadership and how to appoint appropriate people to appropriate positions.

2

u/plippityploppitypoop Jan 13 '23

You think pay is defined by how hard you work?

And how common do you think it is for a CEO to hold multiple C-level positions at the same time?

-2

u/29Hz Jan 13 '23

Does a doctor work 20x harder than a burger cook? You’re paid based on the value you deliver, not how hard you work.

For the record, I disagree with CEO pay structures and think a lot of them are overpaid. But there is a reason they make orders of magnitude more than others. Nothing wrecks a big corporation faster than incompetent leadership.

9

u/AgreeableFeed9995 Jan 13 '23

Uhhhh yes, doctors work way fucking harder than a burger cook. You wanna be a doctor? you’ve got pre-med work, then years of med school, then years of residency, and then every day someone’s health, if not life is literally in your hands.

Then go flip a burger when it’s brown on one side and don’t forget to take it off when the other side is brown and tell me which activity takes more work. What a dumb thing to say. Like so so so so so dumb.

You know what else pays better than flipping burgers? Construction. Because it’s harder work. So dumb.

4

u/29Hz Jan 14 '23

You chose your words carefully. They work way fucking harder, but not 20x harder. Do you see how ridiculous it is to numerically compare how hard people are working? That’s the point I was trying to make.

Doctors don’t get paid primarily based on how hard they work. They get paid because they worked hard in the past to acquire advanced knowledge that no one else has. CEO’s usually work their way up the ladder and are experts in their industry.

→ More replies (3)
→ More replies (6)

4

u/alexjuuhh Jan 13 '23

How's that boot taste?

2

u/Necessary_Quarter_59 Jan 14 '23

Is this the go to comment you guys make whenever a discussion is beyond your economic understanding?

3

u/magic1623 Jan 14 '23

Always. Either that or something sexually violent.

→ More replies (3)

1

u/0nikzin Jan 14 '23

C suite employees don't work 10+ (let alone 300+) times harder than rank and file

4

u/plippityploppitypoop Jan 14 '23

You get paid based on how hard you work?

→ More replies (4)
→ More replies (3)

2

u/jdsekula Jan 13 '23

Yep, it’s crazy how rare it is these days. So many CEOs have the boards in their pocket.

→ More replies (2)

40

u/Konradleijon Jan 13 '23

A CEO taking responsibility for his actions? What a novel idea

87

u/mckirkus Jan 13 '23

I think it's more about maintaining morale in the ranks via solidarity as they begin layoffs.

6

u/ahk76gg Jan 14 '23

Literally in his contract but okay

2

u/[deleted] Jan 13 '23

RemindMe! 3 months

2

u/MmmmMorphine Jan 14 '23

Bingo. I have zero reason or faith to believe this has anything to do with accountability or some noble purpose. Just another way to generate positive publicity and keep the pitchforks at bay for just a biiiit longer

Plus I don't particularly care if he's making five hundred times the average salary or a thousand when that multiplier shouldnt have ever been in the triple digits in the first place

→ More replies (1)

2

u/Fit-Mathematician192 Jan 13 '23

And yet he still gets millions

2

u/ygduf Jan 14 '23

“Huge”

He’s still getting astronomical amounts of money every year.

2

u/vikinglander Jan 13 '23

BS. Wether he makes 200 million or 400 million is of no real consequence to him. This is cynical virtue signaling only.

1

u/PinStickMan44 Jan 13 '23

The thing is a CEO of the biggest company on Earth (and all big companies) is definitely getting more compensation from stock options and other incentives than his salary.

1

u/72FOFH00av Jan 13 '23

It’s just performative image-polishing. If he was actually interested in making real change he would treat his employees better and clean up his company’s supply chain

→ More replies (4)

928

u/Beny1995 Jan 13 '23 edited Jan 13 '23

Unlikely. Tim Cooks' salary is $3m so -40%= $1.8m. I'd wager he isn't taking a cut on his bonuses.

Meanwhile Meta laying off 10,000 employees with an average wage of $100,000 (very conservative estimate) equals an annual saving of $1bn. Almost 1000 times more saving.

Now, if all apple SVPs and VPs take similar paycuts, we might be in the same ballpark.

Edit: yeah fair dos I didn't read the article, it's his TC getting cut not his salary. Still my point stands that the saving won't come close to layoffs.

740

u/wpScraps 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."

Cook has received a $3 million base salary for the past three years, but his total compensation — which includes the restricted awards — jumped from $14.8 million in 2020 to $98.7 million in 2021 and $99.4 million in 2022.

333

u/tingulz Jan 13 '23

That’s disgusting.

407

u/Jak_n_Dax Jan 13 '23 • Take My Energy

It really is.

How do I become a CEO?

153

u/blueberrywine Jan 13 '23

Just gotta send in your resume

135

u/Jak_n_Dax Jan 13 '23

That’s it?

Edit: guys it works! I’m rich now.

27

u/Kotopause Jan 13 '23

Damn! Too bad I don’t have a resume.

45

u/Charles_Whethers Jan 13 '23

Hit the "Pause" icon. It will show up once you do that.

8

u/Breathoflife727 Jan 13 '23

This took me too long to get. Take my upvote

2

u/Nanahamak Jan 13 '23

Why didn't we go to resume college. Dang it!

→ More replies (5)

3

u/ckal9 Jan 13 '23

That was fast how did you do it

12

u/Jak_n_Dax Jan 13 '23

Just got out my bootstraps and pulled real hard!

4

u/ckal9 Jan 13 '23

Still waiting for mine to trickle down!

→ More replies (0)
→ More replies (1)
→ More replies (1)
→ More replies (3)

8

u/Franky_Tops Jan 13 '23

Don't forget that firm handshake

3

u/greenroom628 Jan 13 '23

and looking at 'em square in the eye

2

u/eriksrx Jan 13 '23

Don't forget to wear a suit, polish your shoes and comb your hair. And the most important part -- big smile! According to my parents that's all it took in the motherfucking 70s.

2

u/lucklesspedestrian Jan 13 '23

The preferred candidate will have at least 5 years experience as CEO

→ More replies (1)

6

u/Pomnom Jan 13 '23

I heard being 3 CEOs is even easier. How do I become 27 CEOs?

→ More replies (1)

24

u/[deleted] Jan 13 '23

Start a company, like Steve and Steve did.

50

u/catboyeconomiczone Jan 13 '23 edited Jan 13 '23

Be born with rich & well adjusted enough parents to have you placed in the most prestigious opportunities from grade school through college

Edit: Tim did actually grow from middle to upper class seemingly on his own. Apply this to every other CEO and Peloton owner you know.

181

u/N1ghtshade3 Jan 13 '23

He grew up gay in Alabama with a dock worker father and pharmacist mother and went to a public in-state university. Truly the epitome of privileged.

27

u/TravellingReallife Jan 13 '23

Well, did he had to walk to school? 15 miles one way, through snow? Barefoot? Both ways uphill? Through bees? No? Spoiled brat I say.

→ More replies (1)

71

u/bruhmoment69420epic2 Jan 13 '23

no don't you know? literally nobody ever works for their success. everything is just handed to them always.

→ More replies (16)
→ More replies (11)

72

u/23coconuts Jan 13 '23

Usually, yeah, but that doesn't really describe Tim Cook.

47

u/catboyeconomiczone Jan 13 '23

Yeah Tim deserves some cred. Rare case of true advancement through social classes

6

u/Salishseahound Jan 13 '23

Not that rare. Immigrant communities that come here and have some of the highest incomes of any group would laugh at you saying it's rare for them to climb the social ladder.

10

u/ConsciousFood201 Jan 13 '23

It doesn’t make sense that CEO’s make hundreds of millions of dollars to do a job anyone could do. If anyone could do a good job, they would find someone cheaper. If it was all about prestige and keeping the rich in power by only hiring other rich people, then Tim Cook wouldn’t be CEO.

The only reasons we hang on to the narrative is because A) sometimes CEO hires don’t work out and the person who fails isn’t punished enough by our artificial standards and B) we’re jealous that their job appears to be a lot easier while paying much better than our jobs.

8

u/blerggle Jan 13 '23

Most people can barely handle doing their basic ass job. Look around at your coworkers and tell me that Joe in procurement who fucks up the paperwork every. single. time. could just run a business tomorrow

→ More replies (22)

2

u/detectivepoopybutt Jan 13 '23

Sundar Pichai is also one

45

u/[deleted] Jan 13 '23

Tim cook went to public school in Alabama and then fuckin auburn lol

15

u/Adventurous-Quote180 Jan 13 '23

I mean, thats not really true. Ofc that helps, maybe even a requirement for big companies, but i know multiple people who were coming from poor families but they still become CEO-s of small/middle sized (max 400 employees) companies. They just worked their way up.

Either accounting or fp&a > CFO > CEO, or they come from an SAP analyst/consultant backroung. All of them were beginning their careers at big4 or consulting firms (like accenture). Ofc to even get there took a lot of work, like getting good grades at university, speaking multiple languages and having good internship experiences etc...

5

u/a_talking_face Jan 13 '23

having good internship experiences

This is really the golden ticket for big 4 and man are those spots competitive.

1

u/Adventurous-Quote180 Jan 13 '23

Yeah, it takes a lot of work to get there, at least in the US/UK. In my home country (hungary), its really easy to get into a big4 internship. Like you have to be really really dumb and lazy to not get in.

Edit: i was speaking about audit. Advisory is harder to get into in hungary too. (But usually for becoming a CEO audit is perfect.)

2

u/tojakk Jan 13 '23

Nice hyperbole, would be a shame if reality ruined your fantasy

→ More replies (2)

2

u/Croemato Jan 13 '23

I'm guessing your name is reference to Jak and Daxter? I really wish Naughty Dog would give us a remaster or, better yet, a new game. I think they are literally my favorite games of all time.

→ More replies (1)

2

u/kingrazor001 Jan 13 '23

The Youtube channel "How Money Works" actually has a video on this. Apparently you should start by getting an engineering degree.

→ More replies (1)

3

u/thbb Jan 13 '23

Honestly, I know a few high level execs still far below the likes of Cook or Zuckerberg, and I really don't envy them.

Having to go through your personal secretary to organize your time offs, which friends you're going to see when (never anything impromptu), being on call 24/7 because a large customer at the other end of the world demanded to talk to someone in charge, never getting some deep, focused time, where you can, for instance, write a novel, study quantum physics or do something that really takes some focus, being surrounded by yes men who spend their time playing dirty with each other and you never know who to trust...

No, that's not my life.

4

u/[deleted] Jan 13 '23

This has to be copy pasta or something.

3

u/TheMadFlyentist Jan 14 '23

Hmm, this is an interesting take because I learned from reddit that CEO's don't actually do anything.

1

u/bcuap10 Jan 13 '23

20% skill/hard work

40% networking

40% pure luck

→ More replies (4)

34

u/[deleted] Jan 13 '23

What would be a reasonable compensation for someone leading a $2.1 Trillion company?

→ More replies (15)

142

u/zimm0who0net Jan 13 '23

Dude, he runs literally the largest company in the world. If you want disgusting, how about the fact that Russell Wilson gets $250M to throw a ball around 16 days a year. And he’s actually really bad at doing it.

83

u/functionallylazy Jan 13 '23

Wilson's compensation is ridiculous, but it's not as simple as throwing a ball around 16 days a year. They added a 17th game last season.

25

u/Emergency_Bluejay397 Jan 13 '23

Important distinction. Thanks for the clarity 🙏

10

u/EcclesiasticalVanity Jan 13 '23

It only took him till the 14th game to score as many touchdowns as has bathrooms in his home.

27

u/Raven_Skyhawk Jan 13 '23

I can be disgusted at both!

2

u/random_account6721 Jan 14 '23

Focus on building yourself up rather than what other people deserve

2

u/Mr_friend_ Jan 13 '23

Exactly right! Or NBA stars that get paid $100 million and can't hit a free throw when everyone else stands still and waits.

4

u/SquisherX Jan 13 '23

Zimm0who0net: Why should I pay you $300? All you did was change a fuse. It literally took you 2 minutes to fix. Do you really think you're worth $9000 per hour?

Electrician: ಠ_ಠ

9

u/skyandbray Jan 13 '23

That's due to the power of unions. Are we against that? His "product" brings in billions of dollars to the owners. Collective bargaining got them 50% of the revenue to go to payroll.

If he wasn't making 250m over 6 years, the billionaire owner would instead. The worker or ownership, who's side are you on?

-1

u/RedditIsOverMan Jan 13 '23

I don't think the pay of the top performing athletes comes down so much to players unions.

10

u/skyandbray Jan 13 '23

It absolutely does. The CBA requires 50% of profit to go to payroll. That was due to the unions demands.

It wouldn't be so much money if so many people weren't consuming the product.

5

u/DropKletterworks Jan 13 '23

CBA's aren't for the top 10-20 paid athletes. They're so owners don't spend 20% of revenue on 2-5 players and 1% on the rest of the team. Teams always shelled out for stars, the issue is every other player was getting brain damage for peanuts.

2

u/skyandbray Jan 13 '23

They have a salary cap along with a salary floor. They have to spend x amount of money to avoid penalties. It has to go somewhere. It going to the most valuable position in sports makes perfect business sense.

End of the day, they are all just employees bringing value to their employer.

3

u/RedditIsOverMan Jan 13 '23

Way-to-go players unions!

2

u/cannibalisticapple Jan 13 '23

Athletes, especially NFL players, can at least have some justification for high salaries because they can get permanently disabled or even killed from injuries. I don't think they deserve 9-digit salaries/contracts, but they risk a lot more than CEOs in cushy office jobs so I'd say they deserve the higher compensation more.

They also seem to have a lot more pressure to be involved in charity work than CEOs and other rich people. Really wonder when society shifted away from rich people flaunting their wealth through charity and good deeds, like the Carnegie libraries.

3

u/SublimeDolphin Jan 13 '23

In response to your Carnegie example, all those guys did all their philanthropic work at the very end of their life after having made more money than anyone could ever spend.

Not to downplay the lasting societal impact some of those projects have had, but let’s not pretend they weren’t called “Robber-Barons” for 90% of their lives. They just had the good sense near the end to try to leave a more positive legacy.

3

u/Buckles01 Jan 13 '23

I can’t stress this enough. I see so many people praise Carnegie and Frick, especially through Pittsburgh, but his selfish actions literally killed thousands of people and my hometown still struggles today to recover from the lasting leadership and societal issues that those events transpired. Guy was an asshole his whole life and right before he died he wanted to change public view, but I will never believe he changed himself.

-3

u/ineedastoge Jan 13 '23

People who complain about athlete wages are weird as hell

-11

u/futurepersonified Jan 13 '23

thats also not disgusting. by the same logic hes top 1% of people who play football on the planet so he deserves it even if hes playing like ass

6

u/stagarenadoor Jan 13 '23

He also throws a ball around a lot more than 16 days a year. Training and practice don’t count I guess.

→ More replies (5)

60

u/Ok-Engineering-6135 Jan 13 '23 • Wholesome Seal of Approval

How is getting stock for the company u work at as a ceo disgusting??

-21

u/tingulz Jan 13 '23

The amount of compensation CEOs get is disgusting.

31

u/zhephyx Jan 13 '23

Why? Because he makes key decisions in one of the most profitable tech companies to ever exist, where employees in his city are paid extremely well? That's like being mad that a pro athlete is getting a 20mil dollar contract - be brings in the value he's getting.

Now, the sweatshops on the other hand are more than questionable

→ More replies (7)

51

u/MidnightUsed6413 Jan 13 '23

Watching redditors Dunning-Kruger’ing the concept of running a trillion dollar business is one of my favorite pastimes

44

u/est94 Jan 13 '23

Agreed. I don’t pretend to know too much about these things, but there are CEOs of far less valuable companies taking far more compensation for doing far less. Add on the fact that Tim Cook took the reins from Steve Jobs AND he was not born into wealth, and he becomes a hard person to criticize from any angle. The guy is brilliant, humble, hard working, and appears to prioritize the longevity of the company and the welfare of the employees over his own compensation.

26

u/Ok-Engineering-6135 Jan 13 '23

Does the ceo not deserve to get part ownership of the company? If ur angry about the amount, ur not angry that he’s getting compensated, ur angry that apple is worth that much

20

u/foreverNever22 Jan 13 '23

I don't see how it's disgusting.

23

u/Baikken Jan 13 '23

/r/antiwork subs that have no idea about how anything works have a very black and white view of corporate America.

→ More replies (35)

14

u/Paolo2ss Jan 13 '23

Why? He should be payed a lot. Apple has a bigger budget/net worth than some countries.

→ More replies (6)

13

u/ChillyBearGrylls Jan 13 '23

Lol you try and run one of the most successful transnational entities the human species has produced.

The largest Western companies are more valuable than entire non-Western countries.

→ More replies (1)

12

u/Dumbass1171 Jan 13 '23

People here acting as if being the CEO of a multibillion dollar corporation is easy

7

u/anonteje Jan 14 '23

People complain about the man devoting his entire life to his work, while they are sitting on the sofa, drinking beer, and trying to minimize their effort put into work...

3

u/BigGreen1769 Jan 14 '23 edited Jan 15 '23

More people would care about their work if they were actually paid fairly and had a living wage.

2

u/Dumbass1171 Jan 14 '23

America has one of the highest median incomes in the world

→ More replies (1)
→ More replies (23)

7

u/abaggins Jan 13 '23

You get money for providing value. He provides the company apple value by creating products people will pay for.

→ More replies (2)

4

u/zero0n3 Jan 13 '23

Is it though? For being the CEO of one of if not the largest tech company in the world?

Like compare that to Musk who’s CEO and owns a large swathe of shares.

Cook is only worth 2 billion.

I’d say, OVERALL, it’s not terribly extreme.

I’d be happy if most companies kept their top pay tied to 100x the smallest (here it was 3 mil to 30k).

The issue is stock compensation. We should strive for a new type of corporate entity that is a mix between non-profit and for profit. A co-op type.

Every employee gets a slice of the ownership. On creation of the entity, you allocate x % of the ownership as employee owned, and then establish rules on how that piece is sliced up among employees.

Most of this can already be done, but I’d want to see tax incentives for the business as the structure itself puts more money into employees as income, meaning more income tax as the company is forced to not hoard money. (Either the company declares profits which will also go to employees, or they try to keep it as close to break even and salaries are higher, research and dev is full speed, essentially they spend more to keep as close to showing no profit.)

So a company shows 1 billion in profit in a year?
If they allocated 30% to employee profit sharing, we’re talking 300 million spread among employees. That’s 300k if it’s 1k employees, 30k if it’s 10k. Employees. Probably something like 10k average across 30k employees. Also, it’s taxed lower than a bonus so you’ll see 8k instead of 5k

→ More replies (1)

4

u/marfes3 Jan 13 '23

It’s actually laughably little in comparison to some compensation if you look at Apples profit

→ More replies (4)

2

u/LIVES_IN_CANADA Jan 13 '23

The restricted awards are typically stock and the number of stock is determined ahead of time. When apple added another T of value during the money printing saga, Cook got paid $$$

2

u/PragmaticPenguin85 Jan 13 '23

Of all CEOs, Tim Cook is one of the few who actually are literally invaluable to the company. He was Steve Jobs’ right hand man from the beginning of the Apple comeback.

4

u/trog1660 Jan 13 '23

Is it any more disgusting than a sports player earning a similar salary?

3

u/futurepersonified Jan 13 '23

no its not. its not Apple's fault the government wont enforce livable conditions for the rest of us

0

u/RabidGuineaPig007 Jan 13 '23

They installed suicide nets at Foxconn. He's a humanitarian.

-1

u/ssbm_rando Jan 13 '23

Honestly that seems like less than most fortune 500 company CEOs make in "total compensation" still.

Like, more broadly, what I just said is certainly disgusting, but as an individual company, Apple actually sounds... a lot better than average on CEO-pay-to-corporate-profit ratio? And it proves that they're adjusting his compensation down by $50 million for the year (rather than the $1.8 mil that Beny randomly guessed at because he didn't read the fucking article at all) which actually would offset up to 200 engineers (or more of non-engineering positions) worth of layoffs?

→ More replies (13)

12

u/RickAstleyletmedown Jan 13 '23

Yeah, talk about a misleading headline. His total compensation will drop 40% but will still be more than 300% higher than it was in 2020. I would kill for that kind of "pay cut".

3

u/CapitalCreature Jan 13 '23

Yes, people usually compare this year's income to last year's income when they describe pay raises or pay cuts.

It's weird that you're complaining that it's misleading that they're not comparing it to 2020 when he made $14 million when he made $125 million in 2019 and $136 million in 2018.

2

u/lsda Jan 13 '23

That's so weird I wonder if something happened in 2020 I forgot about

→ More replies (1)
→ More replies (1)

2

u/elf1980 Jan 13 '23

There’s the rub.

3

u/morbihann Jan 13 '23

Poor Tim.

Those Apple employees should really double down on their work. Their CEO is not growing richer fast enough !

7

u/ssbm_rando Jan 13 '23

Why are people taking this opportunity to dunk on Tim, it's literally right there in the article that it was Tim's own recommendation for the board to lower his compensation package when he could've just as easily recommended some other way for Apple to save money.

Yes capitalism is a fucking hellscape but Tim Cook isn't one of the larger problems in Silicon Valley.

0

u/reddof Jan 13 '23

It was his recommendation after 36% of shareholders voted that his compensation was too high (compared to only 5% the previous year). It was technically still his recommendation, but something was likely going to happen regardless. If the vote kept trending that direction then it could lead to him being ousted as CEO. This is his attempt to get in front of shareholder disapproval.

→ More replies (1)

1

u/[deleted] Jan 13 '23

Wow, perhaps he should just take $1 For the rest of his tenure. Then I would take him seriously.

0

u/f-ingsteveglansberg Jan 13 '23

6 million cash incentive? Sorry how is that not salary. If my boss said he was paying my 10 dollars an hour but giving me a 5 dollar per hour cash incentive, that just means I'm on 15 dollars an hour.

3

u/Points_To_You Jan 13 '23

I’d imagine the cash incentive is paid when he meets certain goals and targets set by the shareholders.

2

u/thisguyhasaname Jan 13 '23

Because it's not a guarantee. It's a "if you do good enough you get extra money"

→ More replies (2)

235

u/Thetacoseer Jan 13 '23

2nd paragraph of the article. His base pay and cash incentive are not changing. His equity compensation is being reduced 40%, which takes his total target compensation down from $84m in 2022 to $49m in 2023

53

u/TravellingReallife Jan 13 '23

Might need to cut out the avocado toasts.

→ More replies (4)

10

u/camshas Jan 13 '23

If I had $84 million I would give $74m away and retire

23

u/DamonIGuess2 Jan 13 '23

I would want more tbh.

9

u/camshas Jan 13 '23

I admit I may also have that itch, lmao.

→ More replies (4)

3

u/CatInAPottedPlant Jan 13 '23

Genuinely curious, why? What would the material difference be? Just curious.

11

u/throwaway1212l Jan 13 '23

Says everybody that doesn't have $84 million.

2

u/dodexahedron Jan 14 '23

I'd put the 74m in a trust with growth potential and donate its proceeds every year to charity til I die, at which point the executor would have the option to close out and donate the rest or continue.

→ More replies (2)

4

u/CatInAPottedPlant Jan 13 '23

I would retire on 10m, spend the other 74m on letting everyone who's ever been good to me also retire, and whatever is left I'd spend on some kind of public good, like an observatory for my university or something that I could use and be a part of but would also outlive me.

I'm 24 and already make 6 figures, I hope/plan to retire as soon as I can (35-40) and spend the rest of my time hiking and traveling and actually enjoying my life. Having an extra 10m would just give me a lot more freedom, but adding another 74m on top has diminishing returns I'd expect. Unless your main hobby is consumerism or hoarding.

Fun to daydream about anyway.

-8

u/[deleted] Jan 13 '23

[deleted]

16

u/camshas Jan 13 '23

Can't I just take $10m there?

16

u/BrazilianTerror Jan 13 '23

Why? This is such a stupid take. Just because someone doesn’t want a lot of money doesn’t mean they don’t have any financial literacy. Choosing to hoard a lot of money is a moral issue not a financial one.

→ More replies (5)

1

u/caiodfunk Jan 13 '23

How will he be able to live? Pay check to pay check like the rest of us?

1

u/Yangoose Jan 13 '23

Yeah, but he "only" made $20 million in 2020.

It's only a "pay cut" from his hugely inflated pandemic profits in 2021 and 2022.

→ More replies (1)

66

u/--Nyxed-- Jan 13 '23

That really is the type of thing you should spend the 2 minutes to read about instead of guessing.

1

u/Yangoose Jan 13 '23

The reality is even worse.

He "only" made $20 million in 2020.

It's only a "pay cut" from his hugely inflated pandemic profits in 2021 and 2022.

He made $100 million a year then.

Now he's all the way back to $50 million.

29

u/nanlinr Jan 13 '23

Um, read the article and compare the numbers? It's a 40% cut to his total compensation including equity awards.

6

u/Bill_buttlicker69 Jan 13 '23

Classic reddit lol

2

u/ATXBeermaker Jan 13 '23

And it's still over 300% increased over what it was in 2020.

4

u/Play_with_allan Jan 13 '23

And this kids is forming an opinion based on existing biases. Creating a self fulfilling prophecy that the world is shit by making up negative stories in your head with zero facts or proof.

Don't be like this man kids.

2

u/manymaniacs Jan 13 '23

Read the article....$50m per year cut. That's a lot of apple geniuses

2

u/DaddyKiwwi Jan 13 '23

Apple doesn’t own meta so I fail to see how this is relevant.

2

u/blind2314 Jan 14 '23

You’re absolutely delusional if you think the average salary of the 10,000 Meta employees is $100,000.

6

u/YoYoMoMa Jan 13 '23

Yup. CEOs make most of their money in bonuses.

3

u/NoAttentionAtWrk Jan 13 '23

I wager that he is gonna get paid in stocks

5

u/carkhuff Jan 13 '23

From comment above — $3m salary, $6m cash incentive, $40m in equity awards. It’s always equity at that level because their payout is correlated with company overall performance, plus they have to buy the stocks as personal “buy in” so they actually have to perform. Although usually the CEOs get some sort of loan from the company to buy the stocks as the price of buying them is usually higher than overall net worth

→ More replies (1)

2

u/relet Jan 13 '23

Now the big difference is that Tim Cook is still employed and will probably create as much value for the company as he did before, because he is motivated to get his bonuses back.

Those employees are gone, they won't produce value. You're "saving" their salary, but you're also losing income opportunities.

1

u/tas50 Jan 13 '23

No way the average cost of a Meta employee is 100k. Even if the wage was averaged 100k, when you add stock bonuses and benefits the total comp is well above that. They pay incredibly well, even outside the US.

1

u/ATXBeermaker Jan 13 '23

Lol, if you read the article this is more like when a retailer marks a price up by 2x then puts it "on sale" for 25% off. Cook's total compensation was $14.8M in 2020 and jumped over 6.5x to $98.7M in 2021 and $99.4M in 2022. Now it's being "cut" to only $49M, which is still over 3x what it was in 2020. He definitely took a huge windfall of income when tech was soaring during Covid.

→ More replies (17)

21

u/[deleted] Jan 13 '23 edited Jan 13 '23

[deleted]

29

u/howlingoffshore Jan 13 '23

I’m a bit scared.

I’m about to have a kid. Not trying to leetcode my life away right now.

-3

u/[deleted] Jan 13 '23

[deleted]

4

u/treefox Jan 13 '23

Twitter and Apple are very different companies.

2

u/astrange Jan 13 '23

The site is losing money hand over fist, everyone hates him, and he fired all the legal compliance employees with an active FTC consent decree.

5

u/Mr_Stillian Jan 13 '23 edited Jan 13 '23

The problem with layoffs is that you'll potentially be competing with hundreds of your former co-workers for limited spots in the sector. If Apple is doing poorly, you can bet that their competitors are too - and as such, many of them won't be hiring and many will even be laying people off themselves. So it doesn't matter if you're super qualified and have the greatest companies and schools on your resume, getting laid off in a downturn isn't a great place to be.

8

u/spazzyalt Jan 13 '23

Ignoring the fact that you’re making the assumption that every Apple employee is some high in demand software engineer. This is such a awful take. You really think employees aren’t scared to lose their job?

→ More replies (3)

4

u/Nyrin Jan 13 '23

That sentiment, if exaggerated, was fairly accurate for quite a long time -- but it's really not true in today's economy.

Companies, big and small alike, are almost ubiquitously somewhere between "significant hiring slowdown" and "near-complete hiring freeze." Combine that with the extra candidate supply from industry layoff waves and it's not last decade's "I'll have another job by the end of the week" guarantee.

There's very real angst in tech around job security at the moment. A lot of it if you're beholden to your employer for immigration status.

2

u/LeaperLeperLemur Jan 13 '23

Highly dependent on what you do at Apple. I bet the retail Apple store employees are scared to lose their jobs.

→ More replies (1)

2

u/[deleted] Jan 13 '23

Not good with numbers eh?

5

u/oboshoe Jan 13 '23

It's enough to keep about 10 to 15 employees on the payroll.

-16

u/[deleted] Jan 13 '23 edited Jan 13 '23

[removed] — view removed comment

77

u/possiblynotanexpert Jan 13 '23

Aren’t you using sales revenue numbers though? That’s not the same as profits lol.

12

u/JKUAN108 Jan 13 '23

Someone on Reddit is wrong? Unpossible!

</s>

4

u/[deleted] Jan 13 '23

Reddit gets fixated at the big numbers because people on here don’t understand revenue ≠ take home money. Don’t get me wrong, Apple makes bank, but only like 20% of that revenue is profitable.

Tim Cook reducing his salary is a gesture more than anything, it doesn’t move the needle in any meaningful way for a company of their size.

→ More replies (2)

64

u/mihmjsm Jan 13 '23

Revenue does not equal income

30

u/cidthekid07 Jan 13 '23

Uhhh….that’s now how this works.

26

u/Justin2478 Jan 13 '23 edited Jan 13 '23

This is prime r/confidentlyincorrect material

5

u/buttrapinpirate Jan 13 '23

Gross profit is still not net income my dude

→ More replies (3)

0

u/nylockian Jan 13 '23

They could also pay their cleaning staff $500,000 per year no problem - but it wouldn't make any sense to do that either. Businesses pay based on the market rate.

→ More replies (8)
→ More replies (8)

1

u/Throwaway1245928 Jan 13 '23

If this happened instead of them laying off 100's or 1000's of employees good on him and Apple.

Except as usual with you folks the math doesn't math. When we're talking actual expense to Apple to employ Tim Cook it's this:

with a $3 million salary, $6 million cash incentive

That's his cash out the door from Apple's coffers. He has additional compensation:

and $40 million in equity awards.

Source

But that's equity, in a sense it costs apple nothing to give this to Tim. They're essentially diluting the equity of shareholders to give to Tim, a package which is approved by the BOD, whose elected by said share holders.

So when it comes to saving jobs, the first part is all that's applicable, because taking away the equity won't improve their financials and desire to keep workers.

So let's assume for the sake of argument Tim gets his full $6m bonus bringing his total take home wages to $9m (side note: he almost certainly will get very little of the bonus because it's likely tied to financial and stock price goals, and Apple stock is in the toilet (down roughly 25% in 2022) with the rest of the equities market bc of interest rates)....

It's tough to find a true Apple average employee compensation for a number of reasons but a few different google sources all put that number around $140k and that makes sense, given they employ a lot of highly compensated tech people in high COL areas who likely earn 2x+ of that average, plus vesting equity.

So Tim's $9m base + incentive pay if it was completely eliminated down to $0 would pay for...

(does advanced calculus)

64 employees.

Apples has 154,000 global employees so thats 0.000415% of all employees at Apple.

inb4 mouthbreather saying "no the average is way lower you dipshit"

Fine, let's say the average wage is $20/hr full time, or $40,000 per year. Of course it's not this but if it was, Tim not paying himself would save 225 jobs, or 0.00046% of all Apple employees jobs.

Now Im not excusing Tim's compensation, $50m is a salary nobody on the planet should earn, and if they do, it should be taxed at 75%, buttttt..... that's a distinctly different issue than the misinformed comment I am replying too

→ More replies (3)

1

u/MechanicalBirbs Jan 14 '23

You are insanely out of touch with tech salaries if you think a 40% pay reduction equates to 100s of jobs.

→ More replies (21)