United States based Apple Inc will bring in changes to its policy on executive cash bonuses which will now be based on whether the executives act within the company's social and environmental values, the iPhone maker said in its annual proxy filing on Tuesday.
But how the evaluation of the executives making progress towards the company's publicly stated targets such as the removal of carbon from its supply chain has not been stated in the document by the iPhone maker.
Positive environmental practices such as using recycled materials in products, promoting diversity and inclusion among its workforce and the privacy and security of its devices are part of the six values that have been listed by Apple.
"Beginning in 2021, an environmental, social, and governance modifier based on Apple Values and other key community initiatives will be incorporated into our annual cash incentive program," the filing said.
There will be no changes made to the company’s targets, the maximum pay outs of cash bonuses to executives and the minimum performance requirements, Apple said.
However the pay outs will be increased or decreased by up to 10 per cent by the company’s compensation committee of its board of directors using the new modifier "based on the Compensation committee’s evaluation of our named executive officers’ performance with respect to Apple Values and other key community initiatives during 2021", the company said.
The manner of evaluation of the executives based on progress toward Apple's publicly announced goals around its values by the committee has not been detailed in the filing.
Apple has set a target of removing all carbon emissions from its entire business, including its products and its huge and often complicated supply chain, by 2030, the company has said in July last year. The company has also targeted to achieve at least 75 per cent of the goal by reducing emissions while it targets to achieve the3 remaining 25 per cent by the removal of carbon or through carbon offsetting projects such as planting trees and restoring habitats, Apple had said at the time.
In relation to a recent shareholder proposal to vote on reducing executive pay relative to the median employee pay at Apple, Apple has cited the new modifier for its shareholders to vote against the proposal.
The proposal itself noted that in 2020, the compensation for Apple’s Chief Executive Tim Cook was at $14.8 million which was 256 times higher than the median Apple compensation of $57,783.
"America’s ballooning executive compensation is neither responsible for the society nor sustainable for the economy, especially under the current pandemic crisis. Reducing the (named executive officer) pay ratios should be included to the principles of executive compensation program," the proposal reads.
(Source:www.foxbusiness.com)
But how the evaluation of the executives making progress towards the company's publicly stated targets such as the removal of carbon from its supply chain has not been stated in the document by the iPhone maker.
Positive environmental practices such as using recycled materials in products, promoting diversity and inclusion among its workforce and the privacy and security of its devices are part of the six values that have been listed by Apple.
"Beginning in 2021, an environmental, social, and governance modifier based on Apple Values and other key community initiatives will be incorporated into our annual cash incentive program," the filing said.
There will be no changes made to the company’s targets, the maximum pay outs of cash bonuses to executives and the minimum performance requirements, Apple said.
However the pay outs will be increased or decreased by up to 10 per cent by the company’s compensation committee of its board of directors using the new modifier "based on the Compensation committee’s evaluation of our named executive officers’ performance with respect to Apple Values and other key community initiatives during 2021", the company said.
The manner of evaluation of the executives based on progress toward Apple's publicly announced goals around its values by the committee has not been detailed in the filing.
Apple has set a target of removing all carbon emissions from its entire business, including its products and its huge and often complicated supply chain, by 2030, the company has said in July last year. The company has also targeted to achieve at least 75 per cent of the goal by reducing emissions while it targets to achieve the3 remaining 25 per cent by the removal of carbon or through carbon offsetting projects such as planting trees and restoring habitats, Apple had said at the time.
In relation to a recent shareholder proposal to vote on reducing executive pay relative to the median employee pay at Apple, Apple has cited the new modifier for its shareholders to vote against the proposal.
The proposal itself noted that in 2020, the compensation for Apple’s Chief Executive Tim Cook was at $14.8 million which was 256 times higher than the median Apple compensation of $57,783.
"America’s ballooning executive compensation is neither responsible for the society nor sustainable for the economy, especially under the current pandemic crisis. Reducing the (named executive officer) pay ratios should be included to the principles of executive compensation program," the proposal reads.
(Source:www.foxbusiness.com)
