Is Apple sowing the seeds of future investor despair?
With a new $5 Billion Headquarters, a $100 million in CEO pay and the requirement that the CEO always fly private jets for "safety concerns" one has to wonder if Apple [AAPL] isn't following in the footsteps of other large American firms who didn't look ahead to the day when they were no longer king of the mountain.
If GM had been much more careful over the years with paring back brands and expenses would they have gone bankrupt? Could better cost control have saved Kodak? At least in Kodak's case, a more traditional campus has allowed their headquarters to be repurposed post-bankruptcy, http://www.spokesman.com/stories/2015/jul/19/kodak-takes-new-role-as-landlord-for-startups/#/0.
Time and time again we have seen that firms need to plan for a future that may not be as flush by practicing cost control all the time. Building a huge one of a kind headquarters in one of the nation’s most costly areas doesn’t seem to qualify, nor does a $100 million dollar plus payout to the CEO or the avoidance of cheap and safe commercial air service.
Hopefully, the Apple investors of tomorrow will not follow in the footsteps of those from Kodak and GM and regret these extravagances in the not too distant future.