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/fumbling-kind Jan 14 '23 • Silver Take My Energy Plus One

I don’t know why this is news.

Within the article it reads:

[“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.”]

So he’s taking 40% pay cut not long after receiving a 667% increase between 2020 to 2021.

So yeah… how noble.

811

u/skubasteevo Jan 14 '23

How will he survive?! Have you seen the price of eggs?!

274

u/shaman_of_ramen Jan 14 '23

"It's one banana, Michael. What could it cost, ten dollars?"

115

u/Past_Paint_225 Jan 14 '23

I'm wondering how long it would take until a banana actually costs $10 and this joke stops being funny

10

u/DumbDumbCaneOwner Jan 14 '23 edited Jan 14 '23

At 3% inflation, would be about 130 years.

$10/$0.20 = 50x

1.03130 = ~47

Edit: I guess and checked this. I think you need to use logarithms lol to actually solve 1.03x = 50. Too hungover.

11

u/qlz19 Jan 14 '23

Now do the math with the actual rates of inflation. It’ll take a lot less time than that. Wasn’t it like 7-8 points last year?

6

u/DumbDumbCaneOwner Jan 14 '23

But that won’t continue forever

5

u/qlz19 Jan 14 '23

Says who? It’s still getting worse, isn’t it?

1

u/pdoherty972 Jan 14 '23

No it isn’t getting worse. Inflation month-over-month numbers have been at target rates the last five months in a row.

0

u/qlz19 Jan 15 '23

Who’s target rates? “Target rates” means nothing.

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1

u/Pyjama_Llama_Karma Jan 14 '23

Remind me 1month lol.

41

u/Kiwifruitsalad777 Jan 14 '23

There’s always money in the banana stand.

11

u/Aidandrums Jan 14 '23

Not if Apple has anything to say about it.

0

u/[deleted] Jan 14 '23

A-wop-bop-a-loo-mop-a-lop-bam-boom!

2

u/LOA503 Jan 14 '23

Best answer ever.

3

u/spacepeenuts Jan 14 '23

We are not too far from Bill Gates dystopian prices

1

u/Square_Salary_4014 Jan 14 '23

Wasn't it 5 dollars ?

1

u/1Th3Gentl3man Jan 24 '23

Come to Canada, bananas are the only things which are still cheap in grocery stores

5

u/Prmourkidz Jan 14 '23

This was funny and I lol’ed. thank you for this

9

u/skubasteevo Jan 14 '23

You're welcome! That will be $4 million please. I used to charge $6 million but I humbly took a pay cut.

2

u/major_slackher Jan 14 '23

have you seen the price of apples?

1

u/jimmycarr1 Jan 14 '23

I'll offer him a dozen eggs for his one Apple

1

u/brave_the_run Jan 14 '23

What's a cup of coffee go for these days? $50?

1

u/skubasteevo Jan 14 '23

You're not far off

1

u/GINJAWHO Jan 14 '23

Now he can’t afford his gold planted jet and will have to settle for a silver jet. Such a shame

1

u/GrandMasterMara Jan 14 '23

"are they like $300 dollars each? I really dont know, here in my ivory tower, my maids do all the shopping" - Tim Apple prolly.

1

u/Blurgas Jan 14 '23

He'll be forever doomed to a life of only semi-luxury

1

u/Foxicious_ Jan 14 '23

No more avacado on toast for him!

1

u/BrendanAS Jan 14 '23

Poor Tim Apple

1

u/Pale_Ad1338 Jan 14 '23

You can get eggs? Bragging again 🙄

1

u/[deleted] Jan 14 '23

What eggs? We're bare shelves where I'm at still..

249

u/Ausgezeichnet87 Jan 14 '23

Also the paycut only applies to his "income" (the $3 mill) and not the rest of his compensation.

157

u/Aurori_Swe Jan 14 '23

Which is also how Steve Jobs could afford a yacht on his 1$ salary. All of this is old news and more than common, they still make obscene amounts of money

11

u/General_Asleep Jan 14 '23

Tbf Steve Job also had a lot of shares. He wasn't just a ceo he was a founder and early investor as well. He had sold most of his shares in the 90s thought.

16

u/Aurori_Swe Jan 14 '23

Most CEO's that does this stunt has some form of shares in their contract anyway. It's a pretty common way to virtue signal as a CEO

4

u/General_Asleep Jan 14 '23

Yeah but CEO aren't wealth like founders. Like Tim Cook, Pichai and Nadella aren't obscenely wealthy compared to Musk, Bezos or Zuckerberg.

3

u/Aurori_Swe Jan 14 '23

Agreed, but he's in no direct need either :)

3

u/General_Asleep Jan 14 '23

Haha yeah he definetely isn't.

3

u/Tomi97_origin Jan 14 '23

Sometimes they are.

Steve Ballmer the ex-CEO of Microsoft who is currently worth ~80B. And he was worth 100B in 2021. The richest employee of all times. He made it all just from his job at Microsoft.

He currently owns more Microsoft shares than Bill Gates.

He joined Microsoft at age 24 as their 30th Employee in 1980. And he stayed with the company until he retired in 2014.

2

u/General_Asleep Jan 14 '23

Oh yea definetly but he had been a ceo before the bull run and own more shares than Gates because Gates sold a lot of them. It sure is different when they are one of the first employee and have been early investor in the business.

2

u/rmoodie100 Jan 14 '23

Same energy as Trump saying he’s not taking salary but pumping government money through his businesses.

Tim and Donald both take a relatively minor ding on salary for optics and end up way ahead.

1

u/boblinquist Jan 14 '23

It’s not virtue signalling, it’s just tax planning. It’s more efficient to take compensation in the form of shares than as a salary.

2

u/Aurori_Swe Jan 14 '23

Yeah, their internal reason is tax planning, going to the media about it is virtue signaling. Makes it seem like they are doing some grandiose gesture when in reality it has little to no impact on their finances

2

u/proudbakunkinman Jan 14 '23

I think Bezos does something similar. Iirc, his salary is $90k.

2

u/beryugyo619 Jan 14 '23

tbf, Steve Jobs’ yacht was much smaller and cheaper than Paul Allen’s aircraft carrier.

2

u/cooluns Jan 14 '23

Look at that subtle off-white coloring. The tasteful thickness of it. Oh, my God. It even has a waterline.

0

u/Opening_Criticism_57 Jan 14 '23

Well that was because he owned stock, no? So different from other forms of compensation

6

u/Aurori_Swe Jan 14 '23

Yeah, just mean it's just virtue signaling at its finest. Cutting your PAY when that's a marginal amount of what you earn basically does nothing

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u/ProdigySim Jan 14 '23

That's not accurate. His compensation cut is primarily from reduction of equity award

Cook’s base salary was unchanged at $3 million, as well as a bonus of
up to $6 million. But the targeted value of his equity award will fall
from $75 million in 2022 to $40 million this year, according to Apple.

Source

30

u/Different-Bet8069 Jan 14 '23

I’m happy that you provided context, but damn that’s still a lot.

3

u/AggressiveBench9977 Jan 14 '23

He is the ceo of a trillion dollar company.

1

u/Different-Bet8069 Jan 14 '23

It would be a trillion dollar company with or without him.

2

u/AggressiveBench9977 Jan 14 '23

Maybe, maybe not. But as the head of the company his salary should reflect the growth. Which it does.

1

u/Different-Bet8069 Jan 14 '23 edited Jan 14 '23

For sure, but I’m still surprised by the original 100M dollar comp plan he had originally.

1

u/AggressiveBench9977 Jan 14 '23

Im assuming it was much smaller than that.

Usually you get the stock compensation award in dollars and then its turned to a number of stock.

Most likely he had a 10-20 mill award that ballooned to 100 during covid. Apples evaluation more than doubled during that period.

1

u/Different-Bet8069 Jan 15 '23

That makes a lot of sense, thanks!

2

u/pumpfaketodeath Jan 14 '23

Is it because the revenue is going to suck because of recession? Or stock price falling. He is actually not taking a pay cut.

5

u/zaviex Jan 14 '23

It was planned to reduce.

3

u/conquer69 Jan 14 '23

So he is basically shorting his salary?

1

u/OneDimensionPrinter Jan 14 '23

Oh heavens no. What will he do.

1

u/Status-Biscotti Jan 14 '23

Okay, well that sounds like he didn’t actually *take* a paycut - but that the company value decreased so he gets a smaller kickback??

1

u/ProdigySim Jan 16 '23

Apple Stock is down but not that far down. It's about 20% down at most. This is a 45% drop in equity award.

This was a specific action taken by compensation committee / shareholders to reduce his pay package.

9

u/planetaryabundance Jan 14 '23

That moment when a Redditor blatantly lies.

His 40% pay reduction is coming from his equity award, not his base salary

1

u/[deleted] Jan 14 '23

It is more likely that PP made a mistake.

Being polite costs nothing. You should try it. You make every thread a little worse with your hostility and mockery.

3

u/planetaryabundance Jan 14 '23

More than likely, they commented on something without having any clue what it is they’re talking about (despite the information being on the second paragraph of the article lol)

2

u/aWheatgeMcgee Jan 14 '23

WSJ Article says of his total compensation package

12

u/Aaronwoon Jan 14 '23

There are the people who are not able to understand the hidden ideas and techniques behind it.

17

u/YOLOSwag42069Noice Jan 14 '23

I don’t know why this is news.

It's called propaganda.

20

u/depressedbananaslug Jan 14 '23

This needs to be too comment

2

u/Killingmesmalls_2020 Jan 14 '23

Because this country worships rich people. So much press is dedicated to making them look good it’s disgusting.

2

u/Ttoctam Jan 14 '23

Yep. This means nothing for Apple, nothing for Tim's net wealth and spending power, nothing for global or local wealth distribution. It's literally just some PR because people have been shitting on him a bit recently. And if taking a loss of actual millions is that meaningless, you have too much fkn money.

2

u/the-hottest-of-damns Jan 14 '23

It’s news because the media is happily reprinting Apple’s press releases to help this dude launder his image.

1

u/Aururian Jan 14 '23

why u gotta be a hater mate? he could have easily kept his salary at the same level lmao

4

u/4ofclubs Jan 14 '23

Why you gotta be a simp for rich people mate?

0

u/lazy_commander Jan 14 '23

It’s still a 40% paycut on their highest single salary which is a yearly operational cost. His previous salaries and bonuses are irrelevant.

This means their operations costs go down by a considerable margin from one persons salary cut vs having to trim a large number of salaries or lay people off to get a similar spending reduction.

It’s not saying he’s going to be poor, but he’s doing something to reduce or eliminate his staff having their salaries constricted or even worse having layoffs during a spending reduction…

1

u/LiquidMotion Jan 14 '23

So do you think we should go with Barbeque or classic A1 for the spitroast?

1

u/JoziahIsHere Jan 14 '23

Thx for context, smh

1

u/tallginger89 Jan 14 '23

Fuck...he's really gonna be living paycheck to paycheck now

1

u/catzarrjerkz Jan 14 '23

How will he make ends meet?

1

u/redditiscompromised2 Jan 14 '23

Triple pay for ceo? It's good for the business! Stonks go up

Cuts to pay to ceo? It's good for the business! Stonks go up

1

u/FlightAble2654 Jan 14 '23

It's probably still more than most people are in a lifetime

1

u/fayebella Jan 14 '23

Smoke and mirrors.

1

u/ethnicbonsai Jan 14 '23

My first thought was that his compensation is going to more than make up for it.

Steve Jobs had a $1 salary, right? Salary means nothing to the CEO of a giant multinational.

1

u/thinkdontreact Jan 14 '23

The truth with some cheese on it

1

u/Stimonk Jan 14 '23

This is all a tax sheltering scheme.

He reduces his salary but gets paid RSUs, which are stock shares in the company.

He now has a salary that lowers his income taxes, because he only gets taxed when the stocks are sold.

For liquidity, he borrows a low interest loan ising the value of the stocks as his collateral and now has money he can spend that isn't taxed, because we don't tax debts.

He now evaded taxes and looks like a hero because he only took a $1 salary.

1

u/Status-Biscotti Jan 14 '23

i haven’t seen the article, but when they say paycut, I think it generally means on the base (3 million).

1

u/jessiezell Jan 15 '23

Nope. It truly makes more sense when you read the article. It’s not 40% of base 3 mil.

1

u/spaceman_ Jan 14 '23

No. He's taking a 40% cut to his $3 million salary.

The rest of his income is incentives, bonuses and mostly stock allocation. These will NOT be affected by a 40% reduction most likely.

1

u/Goldmedal1515 Jan 14 '23

Well, when you reach his level, you can take an 80% cut in pay. My position, is don’t hate on a guy who has continued to lead a #1 global company. Many executives take pay in stocks, that is risky if business fails. Apple is by far from failing, so his equity will go up. I’m sick of people hating on success.

1

u/Signal-Blackberry356 Jan 14 '23

Maybe now the company gets 39.8 million back though, from his salary. Which overall supports the employees