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Apple's Jobs gets jet, shares in bonus

After two and a half years back at the company he cofounded, Steve Jobs is finally getting a bonus--a personal jet and 10 million Apple shares.

2 min read
After two and a half years back at Apple, Steve Jobs is finally getting a bonus.

Newly named CEO Jobs isn't going to get a pay raise, but he will get stock options to purchase 10 million shares of Apple common stock and a Gulfstream V airplane "in recognition of his service to the company," Apple said in a statement.

The Cupertino, Calif., computer maker today announced a quarterly operating profit of $178 million, or $1.00 per share, easily surpassing the 89 cents per share anticipated by Wall Street analysts. The strong earnings report included a $90 million charge for executive compensation--offset by sales of its holdings in other companies--which turned out to be stock options and a jet for the man credited with spearheading Apple's turnaround.

Apple's board of directors voted unanimously to give the generous bonus based on the company's financial performance during Jobs' tenure, Apple said. The company has posted nine straight profitable quarters, but only this month did Jobs become Apple's official CEO on a full-time basis.

"Apple's market (capitalization) has risen from less than $2 billion to over $16 billion under Steve's leadership since his return to the company two and a half years ago," Apple board member Ed Woolard said in a statement.

"Steve has taken no compensation thus far, and we are therefore delighted to give him this airplane in appreciation of the great job he has done for our shareholders during this period," Woolard said.

The $90 million charge covers the purchase price of the plane plus all associated sales and income taxes that Jobs otherwise would have had to pay on the gift, Apple said. If the plane alone were counted as salary, Jobs' salary over the last two years and four months since being named as acting CEO would be about $38.5 million per year.

The 10 million shares Jobs received were granted a week ago at then-market price, according to Apple board member Jerry York.

The shares, which Apple said will be accounted for separately, would have an exercise price of about $870 million based on a strike price of $87.13, Apple's closing price last Wednesday.