NEW YORK – Apple Computer Inc. (AAPL) Chief Executive Steve Jobs (search) took a $1 salary in 2003, as he has since 1998, and received $74.75 million in restricted stock in exchange for his outstanding stock options in March 2003.
The Cupertino, Calif. company did not pay Jobs, who is also a co-founder of the company, any new stock options or cash bonus in 2003. No other executive received stock options in 2003, Apple said.
Jobs began taking a $1 salary one year after he returned to Apple in 1997, aiming to turn around the company he helped found. But over the years, other compensation for Jobs has been criticized, such as stock options and a $90 million jet.
The grant of restricted stock, which Jobs received in exchange for cancellation of 27.5 million stock options, vests three years from the date of the grant. The move, which Apple disclosed a year ago, was part of the company's effort to reduce the percentage of issued stock options as a total of options and shares outstanding.
Options are the right to buy a set amount of stock in the future at a predetermined price, while grants outright give stock to executives, with ultimate possession often governed by performance requirements to be met or exceeded over time.
The company, which makes the Macintosh computer (search) and has recently had success with its iPod (search) digital music player, said that in November of 2003 it lifted a salary freeze that had maintained employee and executive officers at 2001 levels.
Employees received merit increases, the company said, but executives have not received increases in three years, other than through promotions, Apple said.