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Paul E. Jacobs, 48, who succeeded his father as chief executive officer of Qualcomm in 2005, was the 26th best-paid U.S. CEO last year, according to a compilation in today's (April 10) New York Times. Jacobs's total compensation was $17.6 million, up 1% from the previous year. Among the 200 best-paid top executives was Sempra Energy's Donald Felsinger, whose total compensation was $8.4 million, up 1% from the previous year.

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Comments

SurfPuppy619 April 10, 2011 @ 9:07 p.m.

Claiming Paul E. Jacobs is a true CEO is like saying David Copley was the true Editor in Chief of the UT.

They are both trust fund babies, and the ONLY reason they are getting/have gotten boo koo bucks is because of their parents.

I'm not impressed.

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Don Bauder April 11, 2011 @ 12:43 p.m.

I must say that $17.6 million for a 48-year-old who inherited the post from his daddy sounds excessive. Qualcomm isn't the 26th largest company by far. Best, Don Bauder

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Visduh April 10, 2011 @ 10:19 p.m.

Paul Jacobs may not be a true trust fund baby, and he may be capable in some roles. There's no reason, however, to think that he was the best, the only, the obvious choice to succeed Dad. There were others, or there should have been others, who made larger contributions than he did. When a CEO father grooms his son as his successor, he often shelters him from the real essence of being the boss. The un-anointed up-and-comers in the operation had to be good at everything they did to get where they are, while the son floated on the surface. As a result, they're the ones with the in-the-trenches experience that he lacks.

Based on my own personal experiences with nepotism, I refuse to own Qualcomm stock. If I'm wrong, and Paul is as good as his father, I lose out on some potential gains. I'm not worried. If you doubt me, look no farther than Price Company, where Sol Price spent many years telling the world that it was not he, but son Robert, who was the real brains behind the success. The world knew better then, and definitely knows better now. When Robert Price really took over, Costco swallowed up Price Co., and never looked back.

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SurfPuppy619 April 11, 2011 @ 10:30 a.m.

Very few sons or daughters have what it takes to take over a major company, and the ones that do have what it takes are usually very smart, very dedicated, put the company and employees first and can and will do any job in the company- Otis Chandler is a good example.

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Don Bauder April 11, 2011 @ 12:53 p.m.

Yes, Otis Chandler did an excellent job at the LA Times, although he made some mistakes, such as trying to muscle into the San Diego market without enough staff to pull it off. (Even if he had fattened the staff, I don't think the invasion would have worked, despite how bad the U-T was.) Incidentally, you mentioned in your first post that David Copley was editor in chief in the Copley organization. Not so. His title was supposedly chief executive officer, but he didn't function as that. He had de facto CEOs who ran the company. Best, Don Bauder

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Don Bauder April 11, 2011 @ 12:46 p.m.

Agree on Price Co. Costco wound up the winner because it was much better managed than Price Co. And the CEO of Costco had cut his teeth under Sol Price. Best, Don Bauder

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sd_engineer April 11, 2011 @ 4:34 p.m.

"Paul Jacobs may not be a true trust fund baby, and he may be capable in some roles. There's no reason, however, to think that he was the best, the only, the obvious choice to succeed Dad. There were others, or there should have been others, who made larger contributions than he did."

Indeed. In fact, many people think that Sanjay Jha would have made a better Qualcomm CEO. The fact that Paul Jacobs essentially inherited the reins from his father really shows how the whole "musical chairs" game of outsourcing and in-sourcing of engineering/IT talent does not apply to the rich.

I too have seen the Qualcomm nepotism that you describe and I too refuse to own Qualcomm stock.

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Ponzi April 10, 2011 @ 10:59 p.m.

That salary can buy a lot of curry.

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Don Bauder April 11, 2011 @ 12:56 p.m.

At the rate Qualcomm brings in engineers from India, the top executives almost have to eat curry. Best, Don Bauder

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Ponzi April 10, 2011 @ 11:10 p.m.

Visdah, I worked at the corporate office of the Price Company, under the Robert Price reign, in 1994. I am happy to see this discussion begin. It is late tonight, so I will be brief, but I will also return to add more. I am going to let it be known that Costco Wholesale committed industrial espionage. I have proof and I have witnesses. The people of Costco were former Price Club employees.... [EDITED] But what do you do in a merger when the predator company has stolen your intellectual property and now is acquiring you? Call the FBI? Many angered employee quit Price Company rather than work for Costco.

Remember what I have said in my other posts about “a crime behind every fortune.”

Yes, Costco stole intellectual property from Price Club and then used it against them.

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Don Bauder April 11, 2011 @ 1:17 p.m.

I have never heard that Costco stole intellectual property from Price. That is a strong charge. Somebody should have taken it to the federal authorities at the time. Remember, the CEO of Costco had worked for Sol Price for a long time. Making an espionage charge stick might have been difficult. (I would think the statute of limitations has run out on this one.) Also, if memory serves me right, Costco and Price had already merged. Then the headquarters moved to the Seattle area, with Costco in charge. The Prices left and set up PriceSmart. Is it espionage to take ideas from a company with which you have already merged? Best, Don Bauder

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sd_engineer April 12, 2011 @ 10:49 a.m.

It's worthwhile to recap the differences wrought by Paul Jacobs vs Irwin Jacobs.

During Irwin's stint as CEO, the company grew from nothing to a fortune 500 company. San Diego was transformed into a wireless center in the process as many companies opened development centers in the area. Most of Qualcomm's employees (those were weren't spun-off) participated in the large stock run-up, which resulted in a lot of wealthy employees. Local infrastructure benefitted because of the additional taxes paid by the employees.

Fast forward to the Paul Jacob's era. Qualcomm's entrepreneurship has given way to a monopolistic culture. A culture designed to maximize revenue at customer and workers expense. San Diego is no longer a wireless center, but is instead a Qualcomm center. This could be a good thing, except that the company has imported the vast majority of new workers (roughly 7000) from countries with a low cost basis. Rather than spreading the Qualcomm wealth through lavish stock options and high wages as was the case previously, Qualcomm's wealth has grown and become narrowly focused to mostly management. The community has also not benefited as much as years past, because of reduced taxation (no new millionaires being created).

Worse yet, Qualcomm's extensive lobbying for increased H-1B Visas, coupled with their support of spin groups such as Competeamerica.org, have caused a run-down of American engineers and a perception that Americans lack the skills needed, or are somehow inferior to workers abroad. This has caused massive long-term damage to the STEM professions in America and has contributed to an avoidance of these fields, by America's best and the brightest.

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Don Bauder April 12, 2011 @ 2:09 p.m.

What I don't know is when Qualcomm's commitment to H-1B escalated. Paul Jacobs has only been CEO five years. The big acceleration could have begun during Irwin't tenure. Best, Don Bauder

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sd_engineer April 12, 2011 @ 3:36 p.m.

Good point, perhaps I'm giving Irwin more credit than he deserves. My guess is that Qualcomm's commitment to the H-1B Visa escalated right around 1998 or perhaps a little sooner.

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Don Bauder April 12, 2011 @ 9:10 p.m.

I don't know if 1998 marked the escalation of H-1b at Qualcomm. Best, Don Bauder

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MURPHYJUNK April 12, 2011 @ 3:01 p.m.

"up 1% from the previous year"

must be tough, not even keeping up with the rate of inflation

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Don Bauder April 12, 2011 @ 9:12 p.m.

Yeah, say a prayer for Jacobs and Felsinger and their families. But don't worry: the Republicans will be slashing taxes of the upper 2%. Best, Don Bauder

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