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Is Steve Jobs' one dollar salary with stock options coming back to bite investors?

Apple has built a visible brand that is recognizable and certainly newsworthy. The increased scrutiny can be good. In some cases it can seem frustrating for the Apple investor. Recently stories have broken about the backdated stock options scandal Apple is going through.

Only it isn't just Apple that is being investigated. It's 80+ companies being investigated by the SEC. Some of these companies include Barnes & Noble, Home Depot, and Intuit, and those are the ones who've publicly admitted to it. Recent stories indicate the numbers will only grow, as using options as a way of paying or enticing employees grew to epic proportions in the late 90s.

Continue reading Is Steve Jobs' one dollar salary with stock options coming back to bite investors?

Yahoo! joins Google in tiny CEO pay

In a move sure to take cost savings to a newly symbolic level, Yahoo! said today that Terry Semel's salary would be reduced to $1 each year throughout 2008, just like the top management at Google.

[Aside: as someone who's often been responsible for payroll, I've always wondered how these checks were processed; is it paid all at once or split up into bi-monthly amounts of four cents each? And do they withhold FICA?]

In return, Semel received 6 million stock options at an exercise price of $31.59 per share, as well as the opportunity to receive up to 1 million additional stock options each year. Semel has made $429 million in stock rewards, in addition to his $600,000 salary -- so please don't start sending him your leftover cans of garbanzo beans.

Symbol Lookup
IndexesChangePrice
DJIA+44.2910,291.26
NASDAQ+15.822,166.90
S&P 500+5.501,098.51

Last updated: November 12, 2009: 01:54 AM

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