Apple Plans to Boost Executive Compensation Through Bonuses
Citing a study Apple commissioned, the company said it is not paying its executives enough and is not positioned to be competitive in the area of executive pay with rivals such as Dell and Sony, both of which are trying to copy the success of the iPod.
The iPod has fuelled the company's shares, which have more than tripled in the past year. The company is willing to share with executives in the form of cash bonuses.
CEO Steve Jobs, 50, received $1 in salary and no bonus or restricted stock for the year ended Sept. 25, as he has since rejoining Apple in 1997, the company said in a regulatory filing Tuesday. Jobs co-founded the company in 1976.
In the year-earlier period, Jobs received a $1 salary and $74.8 million in restricted stock, which replaced options that were no longer profitable. Those shares vest in March 2006, Bloomberg reported.
The study Apple commissioned showed executives at comparable companies make more than they do at Apple where only two company executives received cash bonuses last year.
"At current levels, the company's executive compensation program is not competitive," Apple said in the Securities and Exchange Commission filing.
The cash bonus plan will go before shareholders for approval at the company's April 21 annual meeting.