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0 pointscode_duck4y ago0 comments

Why does Tim Cook need an incentive? It seems like he's plenty motivated already and there's very little chance he might leave for a different position.

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4 comments · 1 top-level

webinvest4y ago· 3 in thread

Because otherwise he might decide that Apple’s share price doesn’t matter to him and then Apple shareholders would be sad or mad when it doesn’t go up. Aligning interests is a best way to get the outcome you want from any person.

Berkshire Hathaway owns a massive amount of Apple and they help appoint/vote members to Apple’s Board of Directors who influence the CEO. Warren Buffett is likely a very happy man with the way Apple performed and I doubt he is concerned about another man becoming super wealthy as long as they become wealthy together <3. I’m sure that’s the whole point.

code_duckOP4y ago

This is a reward for past performance, not an incentive for future performance.

I’m sure that Tim Cook was already extremely wealthy prior to this, to an extent that would exceed any capability to spend it on himself.

So now that he has an additional 750 million dollars, what is his incentive to continue performing?

He needs another 750 million dollars? For what? Is he supposed to be excited that he might receive some other ridiculous sum of money for which he has no realistic use?

webinvest4y ago

No, this share plan was decided years ago around the time Steve Jobs died. Apple’s outlook wasn’t so clear then.

code_duckOP4y ago

What do you mean by 'no'? That agrees with the statement that this is a reward for past performance and I don't see how that is relevant to my other statements.

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