Pan, you left out the rest of the sentence.
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The other chunk, which represents 4.57 million shares, or nearly $296 million, was withheld by Apple to pay for income taxes relating to the vested shares, according to filings with the U.S. Securities and Exchange Commission.
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Jobs just paid $296,000,000 in taxes to the government. How you say he's getting out of paying taxes is beyond me. Steve Jobs was taxed 45.8% when he cashed out his stocks.
I don't see the problem here. Instead of being paid a salary he's paid in 10million shares of restricted stock he couldn't sell for three years. After 3 years he sold the stock for cash. Explain to me again how this hurts apple. Explain to me again how the government lost tax revenue.
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Originally Posted by PAN6467
But NOW, present day, we see that people aren't buying stocks for the purpose to invest incompanies. They are eager for a quick turn around in their money. Companies no longer offer dividends like they use to. Stock has become a commodity in and of itself... people aren't looking for long term gains they want it now.
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wrong. The whole reason people buy stocks is to invest in companies. Of course people want a quick turn around but unless you're a short seller/day trader (which is a very small percentage of investors) you aren't expecting a quick buck and know you are in it for the long term (> 1 year). Companies still offer dividends, but that makes little difference and no matter what the dividend is, it doesn't keep people from selling the stock. the dividend is factored into the stock price.
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Originally Posted by pan6467
What do I care, I have cashed out 100's of millions maybe a couple billion the past few years.... sure the company is hurting and employees are having to be laid off..... sure foreign competitors are using their profits for R&D and to improve but I'm set for the next 100 generations. The government sold their soul and maybe ok for awhile..... until the company crashes and all those workers and the communities that depended on those workers money can't put into the tax revenue coffers because they are all unemployed or making a lot less than they were.
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he cashed out slightly more than $600 million. What would you rather him do? not get paid? he could have taken a $200mil year salary and it would be roughly equal to his 10million shares of stock. the government would have still taken 45% of it. its not going to kill apple. people aren't getting laid off because steve jobs makes money. Do you think he does nothing? Do you think steve jobs isn't worth what he's paid? Apple thinks he is, or they wouldn't have paid him. apple is a successful company. the iPod and iTunes, Mac and MacBook, Mac OS X Tiger, etc. etc. Do you think steve jobs just plays golf all day smoking cigars, or do you think maybe the billions of dollars in profit generated from the sales of these products might have had something to do with steve jobs? Since 2003 apples profit has been in the billions of dollars - and you don't think its "fair" that steve jobs is compensated with a fraction of that? Because of him thousands of people have jobs and even more people are making money my investing
in his company. Look at the stock price since 2003
Apple's a solid stock, its not prices too high. its P/E relative ratio is 23.8 its cash flow growth over the last five years is excellent, its EPS growth in the last 5 years is outstanding. (its over 100, 20 is good) Its EPS rank is 95, very very high.
My point - Steve Jobs direction of the company made this possible. If it wasn't for him apple would not see the profits or rise in stock price they have had over the last 5 years. He is justly compensated.