• Your favorite

    Apple

    ,

    iPhone

    ,

    iPad

    ,

    iOS

    ,
    Jailbreak
    , and
    Cydia
    site.
  • Apple Executives Subjected to New AAPL Stock Requirement


    Marking quite the reversal of policies for the Cupertino, California-based Mac-maker, the WSJ confirms that Apple has changed its longstanding position on stock ownership and executive compensation. This month, the company implemented a new rule requiring executive officers to hold triple their base salary in AAPL stock.

    "Non-Employee Directors" must hold 5x their annual retainer and CEO Tim Cook is required to hold 10x his annual base salary in AAPL stock.

    Confirmation of the new rule comes just 24 hours after Apple's annual shareholders meeting, where revisions were proposed and voted on with regard to Apple's corporate governance and executive compensation requirements. What's peculiar, however, is that shareholders voted down a proposal yesterday that was eerily similar to the executive stock holding requirement enacted during the first week of February.

    The base salaries for the majority of senior executives sits at $875,000 for 2013. Apple's CEO Tim Cook pulls down a salary of $1.4 million (for 2013 at least). Non-employee board members are compensated $50,000 per year in their retainer fee.

    Source: WSJ
    This article was originally published in forum thread: Apple Executives Subjected to New AAPL Stock Requirement started by Michael Essany View original post
    Comments 5 Comments
    1. alpawa's Avatar
      alpawa -
      And what happens if Tim cook decides to emulate Jobs and cuts his salary to $1?
    1. Roadw3's Avatar
      Roadw3 -
      1.4 million a year, how does he afford to eat.
    1. GmAz's Avatar
      GmAz -
      So they are artifically inflating their stock price by forcing their high ups to own a minimum amount of stock making it appear it has a higher worth. Pricks!
    1. Slingshot377's Avatar
      Slingshot377 -
      Quote Originally Posted by GmAz View Post
      So they are artifically inflating their stock price by forcing their high ups to own a minimum amount of stock making it appear it has a higher worth. Pricks!
      This actually has a minimal effect on the stock's price. Rather, what this does is ensure that all board members have a vested interest in the well-being of the company. Any malicious decision taken by a board member against AAPL would also highly impact their own personal net worth as result of this.
    1. NewdestinyX's Avatar
      NewdestinyX -
      Quote Originally Posted by Slingshot377 View Post
      This actually has a minimal effect on the stock's price. Rather, what this does is ensure that all board members have a vested interest in the well-being of the company. Any malicious decision taken by a board member against AAPL would also highly impact their own personal net worth as result of this.
      Exactly! These "kids" at these forums stun me with their obvious lack of freshman year economics knowledge. *sigh*