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Originally Posted by pan6467
Some very good points (especially your last sentence).
I just tend to believe that when you see a CEO selling off 10,000,000 shares (or rather his percentage while giving the gov't their percentage), the perception is there is a lack of trust by the CEO, and the fact is the company is the one taking the biggest hit, presently and in the future as that hit will affect earnings at the very least for this year.
I just truly believe if you are going to compensate a CEO in this way, then you need to make stipulations on a maximum amount he can sell per quarter. Because, while a CEO that sells his options all at once may still care about the company, IMHO, he may not give his all any more because he has his.
I find it odd how people on one hand can say "this was incentive so that he would strengthen the company".... can turn around and say "so he sold off all his shares, he still cares and believes in the company. He's entitled to all that money for his hard work." While the company takes a huge unneeded, unnatural, hit that may take years to get over.
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'Earnings' will not take a hit because of this transaction. It has already been factored into AAPL's cost of doing business. In fact, AAPL has grown 40% y/o/y in spite of this 'largess'.
As Cyn said, these type of transactions have all been approved in advance by AAPL's and SEC legal departments.
As far as Jobs 'not giving it his all' , I really don't think this is an issue. He certainly does not need the job...or the money. You do realize he is #67 on Forbes 400? Net worth $3,300,000,000. He has earned his fortune by his own hard work and ingenuity. (Not a Walton heir) I think he took on the challenge of turning AAPL around because he has a passion for it. He takes the money because that is how big boys keep score. He hasn't taken any money (except the $3
) from the company for three years.
Once again, it appears we just have a different perception of the same transaction. I seem to see it as a glass half-full situation, you as the glass half-empty.
But like I said....that is what makes markets.