Apple CEO ready to pay dividend
Source: Agencies |
February 25, 2012, Saturday
|
Print Edition
Print Edition
APPLE CEO Tim Cook says he believes the world's most valuable company has more money than it needs. His next challenge is to figure out whether Apple should break from the cash-hoarding ways of his predecessor, the late Steve Jobs, and dip into its US$98 billion bank account to pay shareholders a dividend this year.
During a question-and-answer session on Thursday at the company's annual shareholders' meeting in Cupertino, California, Cook indicated he and the rest of Apple's board are nearing a decision.
The board and management are "thinking about this very deeply," Cook said. "This isn't a case where 100 percent of people are going to agree with what we do."
The question of how to handle Apple's cash stockpile is a touchy one, partly because company co-founder Jobs had steadfastly brushed aside suggestions that the company restore its quarterly dividend. Apple stopped making the shareholder payments in 1995 when it was in such deep trouble that it needed to hold on to every cent.
Things got so bad that Apple turned to rival Microsoft Corp in 1997 for a US$150 million infusion to stay afloat. Microsoft came to the rescue at the same time Apple named Jobs as its CEO - a decision that turned out to be one of the smartest business moves ever made.
Haunted by memories of Apple's grim times, Jobs kept accumulating cash even as the company's fortunes soared during the final decade of his life.
Cook, though, appears willing to return some of the cash to shareholders since he succeeded Jobs as Apple's CEO in August. Jobs died on October 5 after a long battle with cancer.
During Thursday's meeting, Cook dropped his strongest hint yet that Apple will part with some of the money. "Frankly speaking," Cook said, "it's more than we need to run the company."
During the past year, Apple's stock has surged 50 percent to create about US$160 billion in shareholder wealth. Apple now has a market value of US$480 billion - more than the combined value of Microsoft and rival Google Inc.
Although most of those gains occurred under Jobs' leadership, Apple's stock and financial results have remained stellar under Cook, Job's hand-picked successor.
During a question-and-answer session on Thursday at the company's annual shareholders' meeting in Cupertino, California, Cook indicated he and the rest of Apple's board are nearing a decision.
The board and management are "thinking about this very deeply," Cook said. "This isn't a case where 100 percent of people are going to agree with what we do."
The question of how to handle Apple's cash stockpile is a touchy one, partly because company co-founder Jobs had steadfastly brushed aside suggestions that the company restore its quarterly dividend. Apple stopped making the shareholder payments in 1995 when it was in such deep trouble that it needed to hold on to every cent.
Things got so bad that Apple turned to rival Microsoft Corp in 1997 for a US$150 million infusion to stay afloat. Microsoft came to the rescue at the same time Apple named Jobs as its CEO - a decision that turned out to be one of the smartest business moves ever made.
Haunted by memories of Apple's grim times, Jobs kept accumulating cash even as the company's fortunes soared during the final decade of his life.
Cook, though, appears willing to return some of the cash to shareholders since he succeeded Jobs as Apple's CEO in August. Jobs died on October 5 after a long battle with cancer.
During Thursday's meeting, Cook dropped his strongest hint yet that Apple will part with some of the money. "Frankly speaking," Cook said, "it's more than we need to run the company."
During the past year, Apple's stock has surged 50 percent to create about US$160 billion in shareholder wealth. Apple now has a market value of US$480 billion - more than the combined value of Microsoft and rival Google Inc.
Although most of those gains occurred under Jobs' leadership, Apple's stock and financial results have remained stellar under Cook, Job's hand-picked successor.
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