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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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.

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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.

327

u/tingulz Jan 13 '23

That’s disgusting.

403

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

137

u/Jak_n_Dax Jan 13 '23

That’s it?

Edit: guys it works! I’m rich now.

29

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.

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u/Breathoflife727 Jan 13 '23

This took me too long to get. Take my upvote

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u/Nanahamak Jan 13 '23

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

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u/ckal9 Jan 13 '23

That was fast how did you do it

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u/Jak_n_Dax Jan 13 '23

Just got out my bootstraps and pulled real hard!

5

u/ckal9 Jan 13 '23

Still waiting for mine to trickle down!

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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.

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u/lucklesspedestrian Jan 13 '23

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

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u/Pomnom Jan 13 '23

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

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u/[deleted] Jan 13 '23

Start a company, like Steve and Steve did.

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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.

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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.

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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.

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u/bruhmoment69420epic2 Jan 13 '23

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

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u/Gonorrheeeeaaaa Jan 13 '23

I get where you're coming from, but it is LARGELY the case.

Exceptions like this sure are awesome, though. :)

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u/jinqsi Jan 13 '23

It is largely the case that people who move from working to middle class are handed everything? Man no wonder so many of you hate capitalism.

2

u/Gonorrheeeeaaaa Jan 13 '23

I mean, that's not what I was getting at, but sure!

-3

u/GentleFriendKisses Jan 13 '23

The middle "class" is nearly entirely part of the working class...

No wonder people like you are so easy to manipulate into loving capitalism, you have no idea of even the basics of class

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u/N1ghtshade3 Jan 13 '23

No, it's not largely the case.

You're jumping from an observation that it's easier for wealthy children to become wealthy adults than poor children to become wealthy adults to a conclusion that it's objectively easy--effortless, even--for people with a good upbringing to breeze right into positions of mega wealth. Easier does not mean easy.

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u/Gonorrheeeeaaaa Jan 13 '23

objectively easy--effortless

Oh, I didn't realize that's what I was saying. Thanks for clarifying.

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u/HumptyDrumpy Jan 14 '23

Forrest Gump worked harder and would have given back more.

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u/23coconuts Jan 13 '23

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

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u/catboyeconomiczone Jan 13 '23

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

7

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.

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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

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

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u/Fireball8732 Jan 13 '23

If every ceo in the entire WORLD died tomorrow, it'd be complete chaos and the markets would tank

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u/hesbatman Jan 13 '23

This just isn't really true. Long term success of a company absolutely relies on a good CEO. The only reason a company doesn't fail the second a CEO disappears is because it is literally their job to make that so. You are building a self-reliant machine. Without high-level direction and leadership over a period of time, they would crash and burn very soon. Ask anyone who has worked at a company with a functional vs a dysfunctional c-suite.

Look at Brian Niccol over at Chipotle. Paid a ridiculous amount, but also completely turned the company around due to good direction and leadership. They also completely changed their headquarters just to move to him. A company doesn't do that to make their fellow elites happy, it's because the talent is unmatched.

Also not exactly sure what you mean by they "could be paid less". Companies only care about their bottom line. If an average Joe could become CEO of a public company for 1/100 of the cost that would already be the case.

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u/Exitiummmm Jan 13 '23

And this is your brain on Reddit.

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u/ConsciousFood201 Jan 13 '23

I’m always amazed when someone gets downvoted for going too far left on this website.

It happens though. You’re a crazy person. It’s really that simple…

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u/detectivepoopybutt Jan 13 '23

Sundar Pichai is also one

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u/[deleted] Jan 13 '23

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

16

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

-1

u/DarkerFlameMaster Jan 13 '23

Of course once in the prestigious school you still have to do well academically and socially.

But when surrounded by the best it's a lot easier than having to watch your back at an inner city school, in a high crime rate neighborhood learning hands on about the struggle and what's going on in the hood.

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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.

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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.

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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.

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u/[deleted] Jan 13 '23

This has to be copy pasta or something.

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u/TheMadFlyentist Jan 14 '23

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

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u/bcuap10 Jan 13 '23

20% skill/hard work

40% networking

40% pure luck

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u/[deleted] Jan 13 '23

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

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u/mrmaestoso Jan 13 '23 edited Jan 13 '23

Whatever is leftover after ensuring your employees are compensated fairly and well.

Lol sure people, go ahead and rip this simple statement apart to mean whatever you want me to have meant

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u/TheResPublica Jan 13 '23

Do you know how much Apple developers make? Download Blind and read those conversations for a week.

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u/mad_crabs Jan 13 '23

Apple has some of the most well compensated employees in tech. A lot of them will be paid via equity as well which is huge when they're working at literally the most valuable company in the world (2.1T market cap).

There are times to be disgusted at CEO compensation, this isn't one of them.

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u/[deleted] Jan 13 '23

So the CEO gets whatever profits the company makes? What does the owner get then?

Apple made over $100Bn in profits last year btw.

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u/lonnie123 Jan 14 '23

Depends on how many shares they own. Thats how public companies work. Anyone whos owns shares "owns" the company, and is compensated when they disperse dividends

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u/[deleted] Jan 14 '23

Yes. But that's not what he said.

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u/mrmaestoso Jan 13 '23

That's not what I said, but ok

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u/barnwecp Jan 13 '23

… that’s actually literally what you said

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u/[deleted] Jan 14 '23

So what are you saying?

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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.

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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.

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u/Emergency_Bluejay397 Jan 13 '23

Important distinction. Thanks for the clarity 🙏

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u/EcclesiasticalVanity Jan 13 '23

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

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u/Raven_Skyhawk Jan 13 '23

I can be disgusted at both!

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u/random_account6721 Jan 14 '23

Focus on building yourself up rather than what other people deserve

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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.

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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?

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u/RedditIsOverMan Jan 13 '23

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

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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.

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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.

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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.

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u/RedditIsOverMan Jan 13 '23

Way-to-go players unions!

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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.

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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.

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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.

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u/ineedastoge Jan 13 '23

People who complain about athlete wages are weird as hell

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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

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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.

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u/HumptyDrumpy Jan 14 '23

Throw a ball around in front of tens of thousands people live and televised eternally in front of millions around the world. Not to mention get into dozens of hits with the impact of low-grade car wrecks throughout each one of these 16 days. What are the chances of a CEO getting lifelong CTE or TBI or getting sandwiched by a 6'5" 260 lb linebacker who runs a 4.6 and being able to get up, like at all. I'd actually be okay with rich QBs being scumbags and greedy because they take the hits and it may affect their thinking. What excuse do greedy CEO's have?

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u/Bioslack Jan 13 '23

Dude, he runs literally the largest company in the world.

Regardless of what else you said, that right there is simply not true by any possible metric.

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u/coffeeandweed58 Jan 14 '23

Wild how much y’all carry water for these wildly rich people like Tim and NFL owners. Anyone could sit in meetings and direct people. Only 32 starting NFL quarterbacks. Bet Tim can’t read a defense in 2secs

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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??

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u/tingulz Jan 13 '23

The amount of compensation CEOs get is disgusting.

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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

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u/MidnightUsed6413 Jan 13 '23

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

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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.

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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

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u/foreverNever22 Jan 13 '23

I don't see how it's disgusting.

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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.

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u/[deleted] Jan 13 '23

He's getting more money than most people will see in their lives while people build his products in sweatshops. The wealth given to him would serve society much better if it was used for even the most basic shit, like feeding people or housing people.

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u/Ok-Engineering-6135 Jan 13 '23

How are you gonna feed people with apple stock? Also, why the fuck would apple sell their own company for housing? Not their job. Their job is to build phones. Not build houses and food.

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u/Points_To_You Jan 13 '23

The people building his products are highly compensated engineers.

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u/[deleted] Jan 13 '23

They are mainly constructed by Foxconn, who is well known for their horrible treatment of workers. People were fleeing the Iphone factory as recently as november, so no they are most definitely not highly compensated engineers

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u/JerryMau5 Jan 13 '23

Notable products manufactured by Foxconn include the BlackBerry,[5] iPad,[6] iPhone, iPod,[7] Kindle,[8] all Nintendo gaming systems since the GameCube (except subsequent Nintendo DS models), Nokia devices, Sony devices (including the PlayStation 3 and PlayStation 4 gaming consoles), Google Pixel devices, Xiaomi devices, every successor to Microsoft's first Xbox console,[9] and several CPU sockets, including the TR4 CPU socket on some motherboards. As of 2012, Foxconn factories manufactured an estimated 40% of all consumer electronics sold worldwide.[10]

I hope you’re ready to boycott all your electronics than

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u/[deleted] Jan 13 '23

I never said I was boycotting anything, this is not the gotcha you think it is, it just shows that a system based on greed is critically flawed, in that it is damn near impossible to go your life in the modern world without consuming something created by a slave or worker with no rights whatsoever. You need a phone or computer in the modern world to get a job or fuckin enroll your kids in school, it's not optional anymore. I keep my phones for as long as I possibly can, as to not give them my money. I don't just mean to say this is purely in the electronics industry, it is everywhere, and every single person puts their money into it. My point is that I would much prefer if the money went to those people toiling away in a factory than all the executives who do nothing but speculate and increase their own profits. It isn't right now, all the money that could feed people that starve in lithium mines for this dude's phone batteries and instead it goes to him, which is, as the other dude said, disgusting

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u/JerryMau5 Jan 13 '23

The original point is that Foxconn is not owned my Apple, and Foxconn’s employees are not apples. I agree with most of what you said, but this move to blame Foxconn’s treatment on Apple is ridiculous, considering they make 40% of electronics worldwide. All I see are people point fingers, when in reality they also have Foxconn products.

Now if you want to criticize doing business with the Chinese, then be my guest.

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u/LovingTurtle69 Jan 13 '23

The world doesn't run on sunshine and butterflies the sooner you realize that the sooner you'll be better off.

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u/[deleted] Jan 13 '23

Never said it does

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u/RepublicanzFuckKidz Jan 13 '23

because fiduciary duty puts the company stock value above all other things ... like say the life of the workers, or the environment on the planet

so agreeing to do that, makes you disgusting.

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u/Ok-Engineering-6135 Jan 13 '23

U really have no idea wat ur talking about do u? Those are not mutually exclusive. Increasing stock value and life of workers can both increase. The thing is, it’s not that companies don’t care, the people don’t care. If they did, it would affect the stock price, then the company would be forced to adjust and care for workers. U want ur 5$ shein shirt, so u might say u care about workers, but ur actions don’t.

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u/[deleted] Jan 13 '23

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u/[deleted] Jan 13 '23

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u/[deleted] Jan 14 '23

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u/astrange Jan 13 '23

CEOs do not have "fiduciary duty" to shareholders to max profits. That is not a thing.

https://www.businessinsider.com/tim-cook-versus-a-conservative-think-tank-2014-2

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u/Paolo2ss Jan 13 '23

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

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u/pohui Jan 13 '23

The presidents/PMs of those countries don't earn nearly as much.

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u/TacoMedic Jan 14 '23

Nor do they do anywhere near as much.

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u/pohui Jan 14 '23

I guess Tim Cook just does 2,000 times as much as the average US worker. No other explanation possible.

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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.

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u/Dumbass1171 Jan 13 '23

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

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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...

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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.

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u/Dumbass1171 Jan 14 '23

America has one of the highest median incomes in the world

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u/abaggins Jan 13 '23

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

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u/tingulz Jan 13 '23

He doesn’t create any products. His employees do.

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u/ILOVEBOPIT Jan 14 '23

What do you think he does?

You think they’re paying a guy that much because they like him? If they could get someone else to do the job for less without detriment to the company, they would. There’s a reason they don’t just hire Joe blow for his job and pay him the $300k he would take. They pay him for his value. You understand nothing.

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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

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u/tingulz Jan 13 '23

That would be a good start.

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u/marfes3 Jan 13 '23

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

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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 $$$

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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.

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u/trog1660 Jan 13 '23

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

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u/futurepersonified Jan 13 '23

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

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u/RabidGuineaPig007 Jan 13 '23

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

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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?

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u/FrankAches Jan 13 '23

Yeah instead of 300x the lowest employee, he's generously only taking 180x his lowest employee! Fuck him. Unless it's a 99% pay cut idgaf

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u/boonhet Jan 13 '23

He gets stock. To make his stock worth more, he steers the company to make more money so the stock price rises. It's how CEOs are supposed to work. Yeah his compensation for this year is a couple hundred times that of the average engineer working at Apple, but he can make a stupid decision and instantly lose the company billions, or he can make good decisions and keep the company's value fairly stable in a bad environment - over the last year, Amazon has lost 40%, Google 30%, Apple only 20% (rough numbers).

Your problem isn't with Tim Cook or CEOs, your problem is with capitalism making it possible for a trillion dollar company to exist. Honestly, Tim Cook is a little fish at this point, Large investment funds putting up billions of dollars just to buy residential property, oil refiners raking in record profits at the expense of our fuel and food prices, are the real problem. But we only get headlines about CEO salaries so we can be angry at individuals, not the large entities turning everyone into slaves of capitalism.

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u/tingulz Jan 13 '23

Capitalism is both a blessing and a curse. Hence the very large wage gaps.

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u/DDS-PBS Jan 13 '23

Yes, it is. When you get a "40% paycut" but your annual salary is still the equivalent to winning the lottery, it doesn't matter.

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u/synergyandalignment Jan 13 '23

What he earns in two weeks (125K before tax) is more than twice the average annual salary in the US. Gross.

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u/mw19078 Jan 13 '23

Insane that it isn't illegal honestly. A maximum wage is needed just as badly as a minimum wage (which also needs to be increased)

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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.

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u/lsda Jan 13 '23

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

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u/RickAstleyletmedown Jan 14 '23

That just makes the article worse. I mentioned 2020-2022 because that info was in the article, but if his pay is that erratic, then they should give those years as context as well.

2

u/elf1980 Jan 13 '23

There’s the rub.

2

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 !

8

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.

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"

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u/vikinglander Jan 13 '23

So his big story is just Richie Rich virtue signaling. Sheesh.

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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.

0

u/trouserschnauzer Jan 13 '23

Definitely going to have to do without eggs for a bit.

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u/CUM__IN__ME__BRO Jan 13 '23 edited Jan 13 '23

Haas avocados are literally like a $1.20 each. I could eat a haas avocado everyday of the year for less than like a 438*** bucks. Edit: my math 👎

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u/thelowgun Jan 13 '23

Might wanna redo your math there...

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u/camshas Jan 13 '23

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

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u/DamonIGuess2 Jan 13 '23

I would want more tbh.

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u/camshas Jan 13 '23

I admit I may also have that itch, lmao.

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u/ssbm_rando Jan 13 '23 edited Jan 13 '23

It's not just an "itch" lmao, saying "yes I would instantly retire on $10 million" is just demonstrating a completely ignorance of economic realities. Unless you're already retirement age (at which point it'd take a rather sudden economic collapse for that base value to not be enough), there's no guarantee that your retirement accounts do well enough to actually sustain you on that for the rest of your life unless you literally want to retire to a life of having almost no fun at all ever. The world is a cold and unforgiving place.

Edit: poor people who are scared of being unable to retire are downvoting me, wonderful

17

u/Xperimentx90 Jan 13 '23 edited Jan 13 '23

poor people who are scared of being unable to retire are downvoting me, wonderful

Or people who obviously realize you can still invest the bulk of that $10M while retired and continue to get returns.

Even if you only made 1 single percent on $10M that's 100K a year (and 1% is far lower than the historical average), more than the average person makes, without even touching the $10M.

Anyone who thinks you can't survive on $10M for your entire life is an idiot.

Edit: Some quick googling says the average person doesn't even spend half of that from birth til death.

3

u/camshas Jan 13 '23

Lmao the responses I'm getting are so weird. If I never made any interest on that $10m I could spend 5x more per year than I've ever made in a year for 65 more years.

6

u/CatInAPottedPlant Jan 13 '23

They're downvoting you because you're an arrogant moron, plenty of people retire well before retirement age with less than half of that much. There's even entire subreddits for it, /r/financialindependence for one.

If you plan your retirement around the collapse of society or the economic system, you can't retire on any amount.

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.

0

u/camshas Jan 14 '23

That's a good plan too, but I personally just wouldn't want to ever have to deal with stuff like that if I had enough money to not have to. There's enough people like you out there that would be happy to

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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.

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u/[deleted] Jan 13 '23

[deleted]

16

u/camshas Jan 13 '23

Can't I just take $10m there?

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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.

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u/caiodfunk Jan 13 '23

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

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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.

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u/--Nyxed-- Jan 13 '23

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

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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.

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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.

7

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.

5

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.

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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.

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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

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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

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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.

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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.

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u/The_Crimson_Clover Jan 13 '23

Meta probably saw Twitter running on 6 engineers and a Janitor and wondering why they aren't doing that.

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