Every once in awhile, there's another story about CEOs being paid too much.
Shares of Apple, Inc., (AAPL) are in the $370 range/share.
There are about 930 million AAPL shares outstanding. Apple, Inc.'s market capitalization is about $350 billion.
The general consensus is that the shares of Apple, Inc., will fall in price when the former CEO, Steve Jobs, passes away.
I don't know the exact number, but within the ballpark of figures, shares of Apple, Inc., dropped about $20/share when Jobs announced his resignation as CEO due to health reasons (though he stayed on as chairman of the board).
930 million shares x $20 = $18,600 million or almost $20 billion.
Mr Jobs was getting paid a lot less than $20 billion as CEO, but yet the company's net worth, as measured by market cap, dropped by that amount. And that was just announcing his retirement as CEO.
No further comment.
Cause and Effect???
ReplyDeleteJust because the stock went down during said time period doesn't mean that it was entirely due to S.Jobs movements. On average, how was the entire stock market doing in gains/losses during the same time period after Job's official stepping down? The Market took a major drop nearly across the board.
How/Why does this quality of analysis get published?
It is what it is.
ReplyDelete