Apple CEO’s pay takes big hit vs. record 2011 package

NEW YORK (Reuters) – Apple Inc CEO Tim Cook’s 2012 compensation package of just over $ 4 million is a huge cut on paper for the top executive of the most valuable U.S. corporation, after a 2011 package fattened by more than $ 376 million in long-term stock awards.

Cook received the largest single pay package awarded to a company CEO in about a decade when he replaced Apple‘s legendary co-founder, Steve Jobs, shortly before Jobs’ death in October 2011.

The maker of the iPhone and iPad made the 2012 compensation disclosures in a regulatory filing on Thursday. Cook, who is in his early 50s, joined Apple in 1998 and became CEO in August 2011.

Virtually all of Cook’s $ 376 million bonus in 2011 was in stock awards that will vest in two chunks – one in 2016 and the other in 2021. This structure was intended to keep Jobs’ longtime lieutenant at the helm for many years.

In terms of base salary, Cook actually received a 50 percent increase to $ 1.4 million for 2012, and the same 200 percent bonus that other top Apple executives like CFO Peter Oppenheimer earned, Apple said in a regulatory filing on Thursday.

The 2012 compensation package for Cook also pales in comparison with his 2010 pay, which was 14 times higher, when he served as chief operating officer.

But Tim Ghriskey, chief investment officer of Solaris Group – which counts Apple stock as the biggest holding among the approximately $ 2 billion it manages – said Cook’s package was “normal CEO compensation.”

For example, Yahoo Inc’s CEO, Marissa Mayer, a former Google Inc high-flyer hired this year to try to turn around the struggling Internet icon, won a pay package worth more than $ 70 million. Despite her lack of a CEO track record, her basic pay is comparable to Cook’s, with about $ 1 million in annual salary and up to $ 2 million in an annual bonus.

Oracle Corp’s Larry Ellison, one of the most highly paid chief executives in the United States – and also the world’s sixth-richest man, according to Forbes – received total compensation for the year ended May 31, 2012, of $ 96.2 million – almost all of it in stock options.

That compared with $ 77.6 million for Ellison in the prior year.

Cook’s longtime boss, Jobs, famously received $ 1 a year in salary in the three years before he stepped down, though in 2000 he too received a stock option that analysts say was valued at almost $ 600 million at the time.

Cook will not receive any stock awards for 2012, Apple said in Thursday’s filing.

The 2012 package includes a salary of $ 1.4 million and a nonequity bonus of $ 2.8 million. Cook’s base salary actually increased in 2012 from the $ 900,000 he earned in 2011.

While Apple’s shares are roughly 35 percent higher than when Cook became CEO, they have fallen more than 27 percent since October, when they hit a $ 700.10 high. The stock has declined amid investor worries about intensifying competition in the mobile phone market and growth prospects in important markets including China.

Apple shares were down 1.3 percent at $ 506.35 on the Nasdaq on Thursday afternoon.

(Reporting by Sinead Carew and Liana Baker in New York, Jim Finkle and Tim McLaughlin in Boston and Edwin Chan in San Francisco,; editing by Kenneth Barry and Matthew Lewis)

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It's husband No. 3 for actress Kate Winslet

NEW YORK (AP) — Kate Winslet has tied the knot again.

The Oscar-winning actress wed Ned Rocknroll in New York earlier this month. The private ceremony was attended by Winslet's two children as well as a few friends and family members, her representative said Thursday.

It is the third marriage for the 37-year-old Winslet. She was previously married to film directors Jim Threapleton and Sam Mendes.

The 34-year-old Rocknroll, who was born Abel Smith, is a nephew of billionaire Virgin Group founder Richard Branson.

The couple had been engaged since last summer.

Winslet won a Best Actress Oscar for her performance in the 2008 film "The Reader."

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Books: From Bang to Whimper: A Heart Drug’s Story

On June 23, 2005, American medicine managed to take a small step forward and a giant step backward at precisely the same time, with government approval of the first medication to be earmarked for a specific racial group. It was BiDil, a drug designed to treat heart failure in blacks.

Enthusiasts hailed BiDil’s approval by the Food and Drug Administration as a landmark event in the nascent field of pharmacogenomics, which aims to create drugs tailored to fit an individual’s genetic makeup as precisely as a bespoke suit drapes its owner’s shoulders. Critics just winced and clocked one more misstep in medicine’s long history of race-related disasters.

You would think that the elucidation of the human genome would have cleared up most of the hoary untruths surrounding race and health. But as Jonathan Kahn makes clear in his worthy if convoluted review of the events surrounding the birth of BiDil, the genome has in many respects only made things worse.

It has been clear for decades that race has minimal relevance to the body’s inner workings. Research has repeatedly shown that the biologic variations among individuals of the same race are reliably great enough for race to retain little utility as a biologic predictor. You might as well sort people by height. Or, in the words of an editorial writer for Nature Biotechnology in 2005, “Pooling people in race silos is akin to zoologists grouping raccoons, tigers and okapis on the basis that they are all stripy.”

But old misconceptions die hard, particularly for entrepreneurs eagerly awaiting cash bonanzas from the genomic revolution.

Race may be irrelevant; it may be, as Dr. Francis Collins, the director of the National Institutes of Health, put it, “a weak and imperfect proxy” for genetic differences. But it is also a familiar concept — and asking people what race they are is substantially cheaper than genotyping them.

So in a peculiar paradox, race has come to serve in some circles as a crude surrogate for genetic analysis until actual genomic medicine comes along — a temporary bridge from now to later, known to be flawed but still a quasi-legitimate stand-in for the real thing.

Against this background unfolds the story of BiDil, a drama of greed and good intentions.

Several observations prompted the drug’s development. Among them was the common assertion from the last century that blacks with heart failure were more likely to die than whites. (Mr. Kahn does an impressive job of researching and debunking this statistic.) Then there was the belief that blacks often reacted badly to some of the newer drugs used for treating heart failure, and the results of a study dating from the 1980s suggesting that many black patients did well with two old standby drugs.

Those two drugs were (and are) on sale as generics, costing pennies a pill. But just suppose they were combined into a single pill that could be then specifically marketed to patients who just happened to be thought in particular need of effective medication? Now there was a pharmacologic and marketing plan that would extend a lucrative new patent for decades.

And so it came to pass that a collection of eager investors and some of the nation’s foremost cardiologists smiled on the results of an industry-sponsored trial performed on self-identified black subjects with heart failure: The two cheap drugs combined into the not-so-cheap BiDil reduced mortality by 40 percent compared with placebo. This figure was impressive enough to end the trial early and speed BiDil to market.

How did whites do on BiDil? Nobody bothered to check.

Mr. Kahn deserves credit for teasing out all the daunting complexities behind these events, including the details of genetic analysis, the perils of racial determinations and the minutiae of patent law. Unfortunately, though, he suffocates his powerful subject in a dry, repetitive, ponderous read.

A law professor with a doctorate in history and longstanding interest in race issues, Mr. Kahn trudges a partisan path through the drama in which he himself was a player. (He testified before an F.D.A. advisory committee that BiDil should be approved without racial qualifications.)

He heads bravely into many statistical thickets, but omits relevant clinical data; he repeatedly refers to the trial that led to BiDil’s approval, for instance, but I could find its numerical findings nowhere in the book and had to look them up. In a story that fairly drips with potential human interest, he offers the reader not one sip.

The issues raised on every page are so important and so thought-provoking that it would be irresponsible to warn interested readers away. Still, it would be almost as irresponsible to misrepresent the difficulty of the journey.

As it happens, BiDil itself has had a remarkably inglorious career. Despite its much-trumpeted release, patients did not request the medication, and practicing doctors did not prescribe it.

NitroMed, the company that developed it, sponsored no further studies and failed in 2009.

The drug still lingers on the market; Mr. Kahn writes that BiDil may be resurrected in sustained-release form — that other time-honored technique for wringing a few more years from a drug’s patent.

For a parable of early 21st-century medicine, as it treads water between past and future and never hesitates to reach for a buck, it doesn’t get much better than BiDil.

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White House urges end to labor fight at East, Gulf Coast seaports

The Obama administration is urging union dockworkers and a management group to "continue their work at the negotiating table to get a deal done as quickly as possible" to avoid a strike that could idle 14 East and Gulf Coast seaports.

The word that President Obama is keeping a close eye on the ports' labor situation came from Obama spokesman Matt Lehrich.

The labor union -- the International Longshoremen's Assn. -- and a group known as the U.S. Maritime Alliance are closing in on the end of a 90-day contract extension. The extension ends at midnight Saturday.

The alliance is made up of several shipping lines, terminal operators and port associations.

If no agreement on a new contract is reached, a strike could begin as early as Sunday. It would be the first strike by the ILA in 35 years.

As many as 14 major seaports and 14,500 union workers would be affected. But a group of retailers, manufacturers, farmers and other interested parties have said that the effects of such a strike on the nation's economy could be devastating. The vast majority of the nation's imports and exports move by sea.

U.S. military shipments and so-called bulk cargo that is not carried in 20-foot to 40-foot-long steel cargo containers would not be affected. But more than 50% of the nation's containerized import goods sold by U.S. retailers would be affected. A large portion of the country's agricultural exports would also be impacted.

On Thursday, there was no new developments to report on the state of the negotiations.

Earlier in the week, George H. Cohen, director of the Federal Mediation and Conciliation Service, issued a statement saying that both sides had agreed to meet. The statement said that "due to the sensitive nature of the negotiations," there would be "no additional comment at this time."

John Husing, an economist and founder of the Redlands firm Economics and Politics Inc., said the biggest issue of contention involves so-called container royalty fees on cargo, which supplement dockworker wages. Employers want to cap those fees and limit who gets them. The union says the royalty fees should not be changed.

The ILA says it represents 65,000 dockworkers on the East and Gulf coasts as well as on several major U.S. rivers and the Great Lakes and in Puerto Rico and Eastern Canada.

The impact of a strike would be mitigated by one thing: This is the slowest season for cargo coming by sea into the U.S. Shippers have usually moved their goods for the busy holiday retail season by October.

Even so, a "failure to reach a contract agreement would result in a coast-wide shutdown at 14 containerized ports -- from Maine to Texas -- which would have serious economy-wide impacts," the retail federation and coalition of national and state organizations said in a letter sent to Obama.

Late last month, most of the Port of Los Angeles and half of the Port of Long Beach were shut down during an eight-day strike by the clerical unit of the International Longshore and Warehouse Union.

The ILWU, which represents West Coast dockworkers, is not affiliated with the ILA.

Meanwhile, management at three of the four grain terminal operations at ports in the Pacific Northwest have given union dockworkers what they call their final contract offer.

A strike or a lockout at those terminals would strand millions of dollars of U.S. agricultural exports destined for sale overseas.

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Obama, Democrats, winning over public on 'fiscal cliff'

WASHINGTON -- Americans are increasingly doubtful that Congress and the White House will reach a budget deal as the deadline to the "fiscal cliff" approaches, according a new poll, though more said they still think a compromise will eventually be formed out of the fight.
 
According to Gallup, just 50% of those polled said they think President Obama and Congress are at least somewhat likely to reach a budget compromise, down from a high of 59% on Dec. 9. An increasing number, 48%, said they see no resolution before a deadline of Jan. 1.
 
The cliff, that self-imposed deadline set in place last year to force a deal on government expenditures and revenues, would institute broad spending cuts across government programs and allow President George W. Bush's tax cuts to expire. Both Republicans and Democrats have offered evolving proposals on how to avoid both actions.

PHOTOS: Notable moments of the 2012 presidential election 

But as they have sparred back and forth, with House Speaker John Boehner's "Plan B" proposal notably failing prior to the shutdown in Washington for the Christmas holiday, Obama and his allies appear to be coming out on top, at least in the court of public opinion as measured by Gallup.
 
A majority of survey respondents, 54%, said they approve of the way that Obama has handled the negotiations, and 45% said they approve of Democratic leaders in Congress. Just 26% said they approve of Boehner and the Republican congressional leadership.
 
That's a sharp increase for Obama and the Democrats, 6% and 11%, respectively, since Gallup's last round of polling Dec. 15-16. Approval ratings for Boehner and the Republicans remained low, increasing by 1 point for the House speaker and decreasing by 3 points for his colleagues.
 
A majority of respondents, 68% to 22%, also said they favor compromise over strict adherence to principles in the budget negotiations.

QUIZ: How much do you know about the fiscal cliff? 

Obama is scheduled to return to Washington by midday Thursday to restart negotiations, cutting short his holiday vacation to Hawaii. He will be met by the House and Senate, which are reconvening after the holiday, though neither chamber has any specific legislation laid out on their schedules.

The poll was conducted between Dec. 21 and 22 via telephone interviews with 1,076 people, with a margin of error of +/- 4 percentage points.

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Netflix blames Amazon for Christmas Eve outage

NEW YORK (Reuters) – An outage at one of Amazon‘s web service centers hit users of Netflix Inc‘s streaming video service on Christmas Eve and was not fully resolved until Christmas Day, a spokesman for the movie rental company said on Tuesday.

The outage impacted Netflix subscribers across Canada, Latin America and the United States, and affected various devices that enable users to stream movies and television shows from home, Netflix spokesman Joris Evers said. Such devices range from gaming consoles like the Nintendo Wii and PlayStation 3 to Blu-ray DVD players.

Netflix, which is based in Los Gatos, California, has 30 million streaming subscribers worldwide, of which more than 27 million are in the Americas region that was exposed to the outage and could have potentially been affected, Evers said.

Evers said the issue was the result of an outage at an Amazon Web Services‘ cloud computing center in Virginia and started at about 12:30 p.m. PST (2030 GMT) on Monday and was fully restored before 8:00 a.m. PST Tuesday morning, although streaming was available for most users by 11:00 p.m. PST on Monday.

The event marks the latest in a series of outages from Amazon Web Services, with one occurring in April of last year that knocked out such sites as Reddit and Foursquare.

“We are investigating exactly what happened and how it could have been prevented,” Evers of Netflix said.

“We are happy that people opening gifts of Netflix or Netflix capable devices can watch TV shows and movies and apologize for any inconvenience caused last night,” he added.

Officials at Amazon Web Services were not available for comment. Evers, the Netflix spokesman, declined to comment on the company’s contracts with Amazon.

(Reporting by Sam Forgione; Editing by Leslie Gevirtz and Matt Driskill)

Internet News Headlines – Yahoo! News

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Study Finds Modest Declines in Obesity Rates Among Young Children From Poor Families

A new national study has found modest declines in obesity among 2- to 4-year-olds from poor families, a dip that researchers say may indicate that the obesity epidemic has passed its peak among this group.

The study, by researchers from the Centers for Disease Control and Prevention, drew on the height and weight measurements of 27 million children who were part of the federal Women, Infants and Children program, which provides food subsidies to low-income mothers and their children up to the age of 5.

The study was based on data from 30 states and the District of Columbia and covered the years from 1998 to 2010. The share of children who were obese declined to 14.9 percent in 2010, down from 15.2 percent in 2003, after rising between 1998 and 2003. Extreme obesity also declined, dropping to 2.07 percent in 2010 from 2.22 percent in 2003. The study was published Tuesday in The Journal of the American Medical Association.

The report defined a 3-year-old boy of average height, almost 3 feet 2 inches tall, as being obese when he weighed 37 pounds or more. The same boy was categorized as being extremely obese when he weighed 44 pounds or more.

“The declines we’re presenting here are pretty modest, but it is a change in direction,” said Heidi M. Blanck, one of the study’s authors and the acting director of the Division of Nutrition, Physical Activity and Obesity at the disease centers. “We were going up before. And this data shows we’re going down. For us, that’s pretty exciting.”

The findings were another sign that one of the nation’s seemingly intractable health problems may be reversing course, at least among children. Single interventions like school exercise programs have not worked, and public health experts now say that only a broad set of policy measures has a chance of success.

Over the past year, several major cities, including Los Angeles, New York and Philadelphia, have reported obesity declines among some parts of their student populations.

The new study was one of the first to document a national decline in obesity among young children from low-income families. Researchers say that is particularly meaningful in a population that is disproportionately at risk. Twenty percent of poor children are obese, compared with about 12 percent of children from more affluent families, according to the centers.

It is unclear what drove the decline, but Dr. Blanck offered hypotheses. Breast-feeding, which often leads to healthier weight gain for young children, has increased since 2000. The percentage of 6-month-olds still being breast-fed increased to 47.7 percent among children born in 2009, up from 34.2 percent among children born in 2000.

Breast-feeding of infants from low-income families has risen over the years. In 1980, only 28 percent of infants from those families had ever been breast-fed, compared with 66 percent in 2011.

Dr. Blanck also pointed to changes in the environment, like those documented in a report about food marketing practices released by the Federal Trade Commission on Friday.

The agency found that the amount of money spent on food marketing to children declined by nearly 20 percent from 2006 to 2009, with the biggest drop in television advertising. The total spent on food advertising to youths in 2009 was $1.79 billion, the report said.

The report, based on data from 48 major food and beverage marketers, also found that cereals marketed to children ages 2 to 11 had about a gram less sugar per serving in 2009 than in 2006 and slightly more whole grain.

Marketing to children of the most sugary cereals — those with 13 grams or more sugar per serving — was virtually eliminated between 2006 and 2009, according to the report.

But drinks marketed to children still averaged more than 20 grams of added sugar per serving, the report found. Most of the improvements in beverages in the time period were in those sold in schools, the report said.

Dr. Blanck said she was hopeful that several national programs begun in the past few years would help extend the early declines. One initiative, Let’s Move! Child Care, initiated by Michelle Obama’s office, helps child care centers serve healthier food and include physical activity throughout day.

Changes in the foods that are subsidized in the Women, Infants and Children program, like less financing for fruit juice and more for fruits and vegetables, may also help, she said.

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Hedge fund manager Whitney Tilson also shorts Herbalife

Another hedge fund manager is joining Bill Ackman in the ranks of Herbalife haters.

Whitney Tilson, who helps run three hedge funds and two mutual funds through T2 Partners, said in a mass email Wednesday that he’s short “a tiny smidge” of Herbalife and other so-called multilevel marketers who sell products through individual distributors.

Herbalife, the Los Angeles provider of health supplements, has seen its stock tumble 40% in four trading days after Ackman last week accused the company of operating as a pyramid scheme.

Ackman, the head of Pershing Square Capital Management, said he was shorting, or betting against, Herbalife and laid out his allegations in a detailed presentation in New York.

Tilson’s email message called Ackman’s argument “the most remarkable piece of investment analysis I have ever seen. Simply astonishing,” according to ValueWalk.

In the missive, Tilson wrote that he hopes Ackman’s campaign against the multilevel marketer “results in massive reform of this whole sector, which has preyed upon MILLIONS of vulnerable people all over the world for decades.”

In the last 52 weeks, Herbalife shares have lost about half of their value. Most of that plunge came after Ackman’s attack. In Wednesday trading, however, the stock was recovering, up as much as 8.8% to $28.35 a share.

Herbalife said last week that it will wait until next month to respond to Ackman’s allegations.

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Problems with new 787 Dreamliner continue to plague Boeing

Aerospace giant Boeing Co. just can't seem to escape trouble with its new 787 Dreamliner passenger jet.

More than three years late because of design problems and supplier issues, the much-anticipated plane has run into another bout of turbulence with fresh concerns about its safety.

The Federal Aviation Administration this month ordered inspections of fuel line connectors on Dreamliners because of risks of leaks and possible fires.

PHOTOS: Inside the Dreamliner

On the same day, a United Airlines Dreamliner flight from Houston to Newark, N.J., was diverted to New Orleans after an electrical problem popped up mid-flight. After accepting delivery of the aircraft just a month earlier, Qatar Air later said it had grounded a Dreamliner for the same problem that United experienced.

Despite criticism of the problem-plagued program, Boeing is confident that the plane will be a success once it gets more miles under its wings.

"We're having what we would consider the normal number of squawks on a new airplane, consistent with other new airplanes we've introduced," Boeing Chief Executive Jim McNerney said in an interview on cable network CNBC.

"We regret the impact on our customers, obviously," he said. "But … we're working through it."

The Dreamliner, a twin-aisle aircraft that seats 210 to 290 passengers, is the first large passenger jet with more than half its structure made of composite materials (carbon fibers meshed together with epoxy) instead of aluminum sheets. Major parts for the plane are assembled elsewhere and then shipped to Everett, Wash., where they are "snapped together" in three days, compared with a month the traditional way.

Chicago-based Boeing says the new plane burns 20% less fuel than other jetliners of a similar size. Because of this, the plane has been hotly sought-after. Through November, Boeing had delivered 38 Dreamliners.

The company has taken 844 orders for the plane from airlines and aircraft leasing firms around the world. Depending on the version ordered, the price ranges from $206.8 million to $243.6 million per jet.

Early customers get massive rebates on the first planes delivered because of bugs that may pop up in production. The plane maker sells these early aircraft at a loss.

David E. Strauss, an aerospace analyst at UBS Financial Services, said in a note to investors this month that his analysis indicates Dreamliner production "costs are not declining rapidly enough for [Boeing] to come close to its target for break-even 787 cash flow by early 2015."

Boeing spokesman Chaz Bickers said he would not comment on Strauss' analysis, but he did say that the company had already cut its production cost per plane by half. He did not specify how much that was.

"We're very pleased on the progress and confident on our processes," he said. "Once we get to 10 Dreamliners a month and stay there, that's when we expect a healthy production system."

Boeing is currently making five Dreamliners a month. The company doesn't plan on reaching 10 a month until late next year.

Many of the planes so far have gone to Japanese carrier All Nippon Airways, which has 16 of them. The airline said the Dreamliner has exceeded its expectations.

Since All Nippon began flying the planes in November 2011, it has flown nearly 7 million miles and saved 21% more fuel per flight than a different aircraft of similar size. The company also took a customer survey that found 98% of passengers said they would like to fly again on the Dreamliner.

"This is better than what we initially expected," said Kohei Tsuji, an All Nippon spokesman. "And the financial impact will only grow bigger for ANA as we continue to operate more Dreamliners."

Scott Hamilton, an aviation industry consultant and managing director of Leeham Co. in Issaquah, Wash., said that the latest Dreamliner problems are "irritants more than substance."

"The 787 problems are annoying for the airlines and embarrassing for Boeing," he said. "But I don't see these as major issues to worry about."

william.hennigan@latimes.com

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10 Talented Dogs Playing the Piano

Title Post: 10 Talented Dogs Playing the Piano
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