Fast Money Blog- 12/24/22
The highlight of the week were Nike’s stellar earnings. On Tuesday, December 21st, 2022 Nike, Inc. (NKE) shocked Wall Street with positive earnings for Q2 2023.
The company posted top-line revenue of $13.3 billion, up 17% year-over-year.
Here’s how Nike’s quarterly revenue broke down:
Revenues for the NIKE Brand were $12.7 billion, up 18% year over year.
NIKE Direct sales were $5.4 billion, up 16% year-over-year.
Revenues for Converse were $586 million, up 5% year-over-year.
Additionally, in the second quarter NIKE returned approximately $2.1 billion to shareholders, including dividends of $480 million, up 10% from the prior year.
Nike’s recent earnings have made CEO John Donahoe look deserving of his $32.9 million 2021 compensation package.
As an educated trader you should not only know how to invest for the long-term, but you should also know how we profit alongside some of the most popular CEO’s on Wall Street.
As stock market traders and investors we profit from the Wall Street money machine, much in the way that the employees and CEO’s of our favored publicly traded companies do.
Our participation as a shareholder, selling covered calls and collecting dividends, brings in monthly residual income. While we may not earn as much as a CEO, we also are not grinding it out 80 hours a week under intense stress and constant threat of losing our job. As a shareholder we may be subject to some level of risk, but we are always rewarded when a stock rises.
The CEO of a publicly traded company is the highest-level leader of the organization. They make key decisions regarding management and finances, as well as serving as the public face of the company. They are paid very handsomely for this responsibility.
Here is a look at the salaries of the CEO’s of some of the most popular publicly traded companies.
Advanced Micro Devices, Inc. (AMD)
Did you know that Dr. Lisa Su joined AMD in 2012 and is currently the CEO and chair of the company?
Originally from Taiwan, she pioneered new ways to connect computer chips using copper instead of aluminum, resulting in 20% faster chip speeds. Dr. Su earned compensation $29.5 million in 2021, making her the highest paid woman CEO of a publicly traded company for the third year in a row. Su earned a base salary of $1 million, a performance-tied bonus of $1.2 million, $3 million in stock options, and $53 million in stock awards.
Apple, Inc. (AAPL)
I’m sure you may also know that Apple CEO Tim Cook received $98.7 million in the company’s fiscal 2021. Here’s how Cook’s pay breaks down:
$3 million in salary
$12 million bonus for hitting Apple financial and environmental sustainability goals
$82.35 million in stock awards
Amazon.com (AMZN)
Are you aware that current Amazon CEO Andy Jassy has been with the company since 1997 and is the founder of Amazon Web Services (AWS)?
In 2021, Jassy received compensation valued at about $212.7 million.
Jassy’s base salary is only $175,000, while the vast majority of his pay comes from a one-time award of 61,000 shares of Amazon stock, granted to Jassy when he took over as CEO from founder Jeff Bezos in July of last year.
MSFT
Satya Nadella has been the executive chairman and CEO of Microsoft since 2014, having been with the company since 1992.
As the executive VP of Microsoft’s Cloud and Enterprise segment, Nadella successfully led the transformation to the cloud infrastructure and services business that has outperformed the rest of the market.
In 2021 Nadella received compensation of $42 million, making him one of the top paid Indian origin CEOs in the U.S. While his base salary was $2.5 million, he received a cash bonus of $10.2 million and was awarded stock awards of $31 million.
Bumble, Inc. (BMBL)
Whitney Wolfe Herd is the cofounder and CEO of Bumble. In 2021, 31 year-old Wolfe Herd became the youngest female founder in history to take a company public.
In 2021 she made $1.2 million in compensation, with a base pay of $650,000. Wolfe Herd also owns about 21.5 million shares in the company.
When you are trading and investing in a Bull market you are earning money right along side some of the most popular CEO’s in the world.
Your job moving forward is to develop your trading skills so that you can generate residual income in bull and bear markets.
My hope is that you stay committed to up-leveling your trading skills in 2023.
Tyrone Jackson, The Wealthy Investor