AMITIAE - Sunday 24 June 2012
Crying Wolf Again: Apple Retail and the NYTimes |
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By Graham K. Rogers
Just because it is around the same as other retailers is just not good enough for the NYTimes, even factoring in the pay scale change that was announced last week (perhaps, as Salvador Rodriguez in the LA Times suggests, to try and have the jump on the NYT). Of course there has to be a spin. After quoting a figure for retail sales, we are told, "But most of Apple's employees enjoyed little of that wealth" which is the sort of argument one would expect from someone with an axe to grind. There are not many corporations that will share all of the take with all of the staff (this smacks of Communism), which is why the company chairman is ferried round in a big car and some staff take the bus.
The ten year period is because the board know how valuable he is, even if the press don't. The board wants him to stay. Results thus far suggest the board is on the right track. These results include the quarterly income and the phenomenal jump in the share price. Currently this is $582.10 (the NYTimes uses $576). When Apple announced the iPhone in 2007, the price hit $200 for the first time. Without denigrating any of the staff in the stores, perhaps Cook gets more because he is worth a whole lot more to Apple (which took around $24 billion last quarter) as a corporate entity. Of course, the NYTimes does not seek to compare the figure (it is big and I am amazingly jealous) to other CEOs or to bankers. Let's see. . . . According to a 2011 article from Scott DeCarlo at Forbes, the top (annual) earners are:
Another article showing CEO compensation is available on USA Today (Matt Krantz and Barbara Hansen) who had a far wider look at CEO pay (they include Tim Cook in a more general picture) in the light of unemployment and better pay for those in work. William Lazonick on Huffington Post also has a broad look at executive compensation in the light of execs who do not perform: a political comment, it is nonetheless useful in this context. And The Economist, in an article published only last week, fails to mention Apple at all in its look at overpaid bosses. They include Iger and Paz from the Fortune list (above) as well as Lew Frankfort of Coach, a bagmaker and Ray Irani of Occidental Petroleum, "a disappointing fourth with a paltry $47.1m". The Economist article also examined stock options, but still there was no mention of Apple.
After a useful section outlining personal selection, training and resignations (often the pace is too much) the article brings in the early decision not to use commissions as a part of the compensation package. Yet, the article is full of information about why the mainly young staff loved working for Apple; although they were pleased when it ended and sad that there is no apparent career path (even though the article seems contradictory by including examples of promotions). I have had jobs like that: the day to day pressures and excitement are a stimulation in themselves, but when it is all over you are glad to walk away.
There is good reason not to have a commission package. Try going into any department store in Bangkok, where the staff depend on commissions to make up their minimum wages, particularly the clothes outlets or (perhaps worse) electrical goods and car accessories. It is so bad that I only now normally buy my clothes from one outlet in a specific department store, where the staff know me and leave me alone until I want them. They know I will buy if I am happy with the product, but if I do not I will be back another day.
Although the NYTimes has a job to do -- part of its job is investigative journalism -- they are more creating than investigating here: inventing a problem when there is none. The problem if it exists is not as critical as would warrant an article of several pages. This is less investigation than opinion salted with anecdotes.
Graham K. Rogers teaches at the Faculty of Engineering, Mahidol University in Thailand. He wrote in the Bangkok Post, Database supplement on IT subjects. For the last seven years of Database he wrote a column on Apple and Macs. |
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