But given that his net worth is already $2B, most of which is Apple stock, it seems like he's already incentivized to set Apple up for long term success, one because he has so much stock, and two because he's clearly not working for the comp, but for the love of the game.
Its making a point about a position it's held for a while; that it closely scrutinizes all its investments, a habit it's had for a while, and one it attributes to it's success relative to the nations small size.
Obviously this is a different issue but it’s important for govts to be consistent. It’s like during WW2 when the Royal family obeyed rationing.
It was from around 2014-2015 if I recall correctly.
They do have a tradition of taking stances on corporate governance as a matter of principle and this looks like that.
The fund has a policy of being an active investor to improve worker rights, prevent unethical practices and has a ban on investing in certain areas like weapons, oil and gas (due to diversification issues), tobacco etc.
Edit: Just a note, the funds operation is completely transparent and you can follow the actions and read about strategy, what time frames they are looking at when investing (very long) and more on their web page [1].
[1] https://www.issgovernance.com/file/policy/active/americas/US...
That being said, if his wealth is all in AAPL, then he would earn about 1/2% on it - roughly $11 million per year.
I bet most peope in the world would retire after only one year of his base salary ($3M in 2021).
edit: not considering taxes ;)
3M is absolutely a mind-boggling amount. Ok, housing in San Francisco will eat most of that, but the vast majority of people in the world retire on way less than that
You’re missing something big here. Most people who retire on way less than that are doing so at retirement age.
For example, let’s assume death at 78. The money required to retire at 30 needs to last 48 years. The money required to retire at 65 only needs to last 13 years. And that’s not even taking into account that social security is only available at normal retirement age and you wouldn’t be contributing to it by retiring early.
$3 million is not going to be a secure retirement. It’s going to be very modest living subject to ruin by either inflation (if you go the bond route) or depressions (if you go the stock route).
If you can't get by on that (2x median income in US, top 10% income in the US, top 1% in the world)... You have problems.
Even if you somehow got it entirely tax-free and had no living expenses such that you could start with a $3M balance after a year of work, I’d wager that the vast majority of people would choose to work at least 2 years and many would choose to work 4 or 5 years and that only a small minority of them would quit after 1 year.
Wouldn’t you rather work 2 years and live on $20K/mo rather than just 1 and live on $10K/mo?
Excluding NYC and Silicon Valley, definitely easy to spend $40-50k depending on where you live ... a lot harder to spend the rest ...
The average tech worker family income in the US is well past 50k. Looking at how poor the savings rate is, I would suspect they are spending a lot more than 80k.
Even outside the bay area.
Many of us have no desire to retire at 30 and live a life of poverty. To do what? Play video games all day?
Much rather work for longer, and do something...
Of course it works better if your closer to Tim’s age than in your 20s or 30s.
I mean, some people live below the poverty level just fine. Power to you if you can.
But $300k will only allow you to indefinitely draw down $12k per year / $1k per month. Considering health insurance is mandatory and costs $4k+ per year - that's not leaving you much.
When you have your time to yourself you can pursue helping people, which builds community and unquantifiable opportunity and prosperiry around you. I can see how most people these days would have no faith in that since each family lives in a bubble where they don't need or know anyone else because they have enough money to pay through the nose for everything. They get no benefit from the community in that case.
Besides. Having $300k I could invest most of it and buy half a mountain with a decent house and a barn here.
He's in it for the money, or the competition. Competition for the money.
If you are world-class at something and people will pay you to do it, why wouldn't you get paid for it? Just because you want to get paid doesn't mean you don't love it.
First, commitment and single-mindedness, but also it's inefficient to harvest capital gains (and pay tax on it) if you don't have to; you have to make a 20% delta in the stock you exchange for to make up for it.