Steve Jobs banks his $1 salary, loses $500m

As he's done for the last decade, Apple Chief Executive Steve Jobs took home his customary US$1 annual salary in 2008, but the economic meltdown and Apple's falling stock price whacked half a billion dollars off the value of his personal holdings in the company.

Apple said in a regulatory filing that Jobs, 53, who holds 5.5 million shares of Apple's stock, hasn't sold any of the shares since rejoining the company in 1997. That means what he lacks in annual compensation is made up for in the enormous amount of stock he already holds - a horde that took a beating in 2008 amid fears about the Mac and iPhone maker's vulnerability to the US recession.



Apple shares have lost more than half their value since the end of 2007, when they were trading at nearly $200 and Jobs' holdings were worth more than $1 billion. The stock finished Wednesday's trading session down $2.01, 2 per cent, at $91.01, meaning Jobs' stake is worth around $500 million.



A big hit by any measure, the decline still barely dents Jobs' massive fortune, estimated by Forbes magazine earlier this year at $5.7 billion and ranking him 61st on the publication's list of the richest Americans.

Most of Jobs' wealth comes not from Apple but from the 138 million shares he owns of The Walt Disney Co., a 7.3 per cent stake that makes him Disney's largest individual shareholder.



Jobs scored the Disney stake through a brilliant deal in which he sold Pixar Animation Studios, a company he bought from director George Lucas for $10 million in 1986, to Disney in a multibillion-dollar stock trade 20 years later.



Jobs' Disney holdings are now worth $3.2 billion, more than $1 billion less than the stock was worth last year.



Jobs has a similar relationship with Disney, where he serves on the board, as he does with Apple when it comes to pay. He doesn't take a salary for his work as a Disney director.



Apple's annual proxy filing with the Securities and Exchange Commission shows that its strategy is remarkably egalitarian when it comes to the CEO's compensation. The company doesn't reimburse Jobs for the perks that top executives usually get like home security systems or a chauffeur, but it did reward him in a big way in 1999 after he engineered an impressive turnaround at the company: Jobs' bonus that year was a $90 million Gulfstream V jet, whose operation Apple still helps pay for.



Apple said in the filing that it reimbursed Jobs for $871,000 in expenses in 2008 for his use of the private plane on company business. In 2007, those costs were $776,000, and in 2006, it was $202,000.



Jobs' compensation hasn't been without controversy, however. The company was embroiled in a scandal two years ago over its mishandling of stock option awards, some of which went to Jobs.



At the height of the corporate "backdating" scandals that emerged in 2006, federal investigators began looking at Apple over possible criminal violations in the way the company handled its options, including an award of 7.5 million options given to Jobs in 2001.



Jobs never cashed out the options; they were cancelled two years later while they were "underwater," or worthless, along with other outstanding options. Instead he was given millions of shares of restricted stock that make up nearly all of his current holdings.



Prosecutors closed the criminal investigation last year without filing charges, though two former executives - former General Counsel Nancy Heinen and former Chief Financial Officer Fred Anderson - were charged by the SEC over the so-called "backdating," or manipulating stock awards so they look like they were issued earlier than they were.



Apple eventually took an $84 million charge after it acknowledged it had backdated 6,428 grants between 1997 and 2002.



Jobs was in the news for another reason this week when he revealed before the Macworld trade show that a hormone imbalance has caused the weight loss that made him look gaunt at recent events. Jobs said he wanted to squash rumours that he is gravely ill.



Apple said that its annual meeting is scheduled for Feb. 25 at the company's Cupertino headquarters.

PROMOTED VIDEO
Life and Style
ebooksA superb mix of recipes serving up the freshest of local produce in a delicious range of styles
Life and Style
ebooksFrom the lifespan of a slug to the distance to the Sun: answers to 500 questions from readers
Life and Style
techCould new invention save millions in healthcare bills?
Sport
David Moyes gets soaked
sport Moyes becomes latest manager to take part in the ALS challenge
Voices
A meteor streaks across the sky during the Perseid Meteor Shower at a wind farm near Bogdanci, south of Skopje, Macedonia, in the early hours of 13 August
voicesHagel and Dempsey were pure Hollywood. They only needed Tom Cruise, says Robert Fisk
News
peopleEnglishman managed quintessential Hollywood restaurant Chasen's
Life and Style
food + drinkHarrods launches gourmet food qualification for staff
Arts and Entertainment
Michael Flatley prepares to bid farewell to the West End stage
danceMichael Flatley hits West End for last time alongside Team GB World champion Alice Upcott
Life and Style
Horst P Horst mid-fashion shoot in New York, 1949
fashionFar-reaching retrospective to celebrate Horst P Horst's six decades of creativity
News
Members and supporters of the lesbian, gay, bisexual, transgender (LGBT) community walk with a rainbow flag during a rally in July
i100
Life and Style
Black Ivory Coffee is made using beans plucked from elephants' waste after ingested by the animals
food + drinkFirm says it has created the "rarest" coffee in the world
Arts and Entertainment
Jamie T plays live in 2007 before going on hiatus from 2010
arts + entsSinger-songwriter will perform on the Festival Republic Stage
Life and Style
food + drinkThese simple recipes will have you refreshed within minutes
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    SQL Developer (TSQL, SSRS, SSAS) Fund Manager - London

    £45000 - £50000 per annum + Benefits: Harrington Starr: SQL Developer (TSQL, S...

    Software Developer (JavaScript, TDD, Jasmine, Angular.JS)

    Negotiable: Harrington Starr: Software Developer (JavaScript, TDD, Jasmine, An...

    Front-End UI/UX Developer (HTML5, CSS, JavaScript, jQuery, Ang

    £45000 - £50000 per annum + Benefits + Bonus: Harrington Starr: Front-End UI/U...

    Helpdesk Team Leader / Manager

    £45000 per annum + pension,medical: Ashdown Group: A successful & reputable gl...

    Day In a Page

    All this talk of an ‘apocalyptic’ threat is simply childish

    Robert Fisk: All this talk of an ‘apocalyptic’ threat is simply childish

    Chuck Hagel and Martin Dempsey were pure Hollywood. They only needed Tom Cruise
    Mafia Dons: is the Camorra in control of the Granite City?

    Mafia Dons: is the Camorra in control of the Granite City?

    So claims an EU report which points to the Italian Mob’s alleged grip on everything from public works to property
    Emmys look set to overhaul the Oscars as Hollywood’s prize draw

    Emmys look set to overhaul the Oscars as Hollywood’s prize draw

    Once the poor relation, the awards show now has the top stars and boasts the best drama
    What happens to African migrants once they land in Italy during the summer?

    What happens to migrants once they land in Italy?

    Memphis Barker follows their trail through southern Europe
    French connection: After 1,300 years, there’s a bridge to Mont Saint-Michel

    French connection: After 1,300 years, there’s a bridge to Mont Saint-Michel

    The ugly causeway is being dismantled, an elegant connection erected in its place. So everyone’s happy, right?
    Frank Mugisha: Uganda's most outspoken gay rights activist on changing people's attitudes, coming out, and the threat of being attacked

    Frank Mugisha: 'Coming out was a gradual process '

    Uganda's most outspoken gay rights activist on changing people's attitudes, coming out, and the threat of being attacked
    Radio 1 to hire 'YouTube-famous' vloggers to broadcast online

    Radio 1’s new top ten

    The ‘vloggers’ signed up to find twentysomething audience
    David Abraham: Big ideas for the small screen

    David Abraham: Big ideas for the small screen

    A blistering attack on US influence on British television has lifted the savvy head of Channel 4 out of the shadows
    Florence Knight's perfect picnic: Make the most of summer's last Bank Holiday weekend

    Florence Knight's perfect picnic

    Polpetto's head chef shares her favourite recipes from Iced Earl Grey tea to baked peaches, mascarpone & brown sugar meringues...
    Horst P Horst: The fashion photography genius who inspired Madonna comes to the V&A

    Horst P Horst comes to the V&A

    The London's museum has delved into its archives to stage a far-reaching retrospective celebrating the photographer's six decades of creativity
    Mark Hix recipes: Try our chef's summery soups for a real seasonal refresher

    Mark Hix's summery soups

    Soup isn’t just about comforting broths and steaming hot bowls...
    Tim Sherwood column: 'It started as a three-horse race but turned into the Grand National'

    Tim Sherwood column

    I would have taken the Crystal Palace job if I’d been offered it soon after my interview... but the whole process dragged on so I had to pull out
    Eden Hazard: Young, gifted... not yet perfect

    Eden Hazard: Young, gifted... not yet perfect

    Eden Hazard admits he is still below the level of Ronaldo and Messi but, after a breakthrough season, is ready to thrill Chelsea’s fans
    Tim Howard: I’m an old dog. I don’t get too excited

    Tim Howard: I’m an old dog. I don’t get too excited

    The Everton and US goalkeeper was such a star at the World Cup that the President phoned to congratulate him... not that he knows what the fuss is all about
    Match of the Day at 50: Show reminds us that even the most revered BBC institution may have a finite lifespan – thanks to the opposition

    Tom Peck on Match of the Day at 50

    The show reminds us that even the most revered BBC institution may have a finite lifespan – thanks to the opposition