March 21, 2002 12:40 PM PST

Options add to Jobs' $1 salary

Apple Computer Chief Executive Steve Jobs again took home $1 in salary last year, but don't feel too bad for the guy. Jobs was also granted 7.5 million stock options last October, according to documents filed Thursday with the Securities and Exchange Commission.

The salary details come as Apple disclosed that its shipments of the new iMac will be less than analysts' forecasts, and as the Mac maker announced plans to increase prices on the computer.

Jobs' options carry an exercise price of $18.30. Given that the shares are trading at about $5 above that price, the options would have a value of more than $37 million if all could be cashed in today.

However, only 25 percent of the options are exercisable, with the remainder vesting annually over the next three years.

Apple said its compensation committee decided to award Jobs new options since nearly all of his existing options are priced higher than the company's current stock price.

Apple also accounted for a jet that was awarded to Jobs in December 1999 in the filing. The company had previously disclosed the $43.5 million in jet costs and $40 million given to Jobs to pay the taxes on the plane. However, because the jet was actually given to Jobs in 2001, the company reclassified it as a 2001 bonus.

Apple's other top executives received a higher base salary, including Chief Financial Officer Fred Anderson, who was paid $657,039; Executive Vice President Tim Cook, who was paid $452,219 along with a $500,000 bonus; Senior Vice President, Hardware Engineering Jonathan Rubinstein, who was paid $469,737; and Senior Vice President of Software Engineering Avie Tevanian, who was paid $460,873.

Anderson, Cook, Rubinstein and Tevanian were also each awarded one million stock options, with an exercise price of $16.81, equal to Apple's share price on the day they were granted.

Apple also said it will put to a shareholder vote two proposals that would require the company as a matter of practice to have compensation and nominating committees composed entirely of independent directors. The proposals say this should disqualify from placing on those committees not only employees but also significant customers or those who are executives at companies on which Jobs sits as a director.

Apple's board members include Jerome York, who is CEO of Micro Warehouse, which is a large Mac dealer, as well as Millard Drexler, CEO of The Gap. Jobs sits on The Gap's board of directors. York is on Apple's compensation committee. Apple is recommending shareholders oppose the two proposals when the company holds its annual meeting April 24.

 

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