How does Apple keep its key employees worth millions ?
Apple’s senior management team is predominantly made up of people over the age of 50. As has now become clear, Apple deliberately retains employees in senior positions who are not only more experienced, but also older. The company’s CEO, Tim Cook, prefers older employees in order to strengthen the public’s trust in Apple. This information was reported by Mark Gurman in his newsletter for Bloomberg.
To understand why Cook is keeping older workers, we need to go back to the time after Steve Jobs left. Shortly after his death, Bob Mansfield, a major figure in Apple’s hardware engineering department, wanted to leave the company. Cook was worried that Mansfield’s departure would upset investors, so he persuaded him to stay, even though it cost Apple a lot of money. According to Cook and other executives, it paid off. Still, Mansfield had no specific project for several years before he was assigned the development of the Apple Car, which ultimately failed. Gurman claims that Mansfield has been paid mainly to stay at Apple for a decade, not to do actual work.
Cook took a similar approach in 2015 when Jony Ive wanted to leave. Apple offered him a high salary and the opportunity to work only one or two days a week to keep him. Yet Ive eventually left and started his own company, with Apple trying to maintain a close relationship with his new company, Lovefrom. Apple reportedly used the same strategy with Phil Schiller, who also wanted to leave the company.
The most recent case where Apple used this method involves CFO Lucy Maestri, who wanted to leave but instead will remain with the company as an advisor to Tim Cook. However, Gurman questions whether it is reasonable to pay huge sums to people who no longer have an active role in the company.
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