Proxy advisory firm Institutional Shareholder Services (ISS) has urged the investors of Apple Inc to vote for its director nominees and the pay packages for top executives, including Chief Executive Tim Cook. The iPhone maker will hold its annual shareholder meeting on 10 March.
The ISS stance has come after Apple Inc slashed Cook’s 2023 compensation target by more than 40% to $49 million. Cook’s salary will also depend more on how well the company’s shares perform relative to market peers, according to regulatory filings by the company.
As part of the changes, the percentage of stock units awarded to Cook and tied to Apple’s performance will increase to 75% in 2023 from 50%, as well as in future years, the company said.
For 2022, Cook received compensation of $99.4 million, including $3 million in base salary, about $83 million in stock awards and a bonus. That was up slightly from 2021, when his total pay package was $98.7 million.
“Continued monitoring of the pay programme is warranted to ensure that pay magnitude is supported by a continued strong performance by the company,” ISS said in a note.
Further, the ISS also recommended investors vote for proposals including a resolution demanding a report on median gender and racial pay gaps, and an amendment of proxy access rights, both of which were opposed by the company’s management.
Support for the proposal requesting a report on the median gender and racial pay gap is warranted as it would allow investors to compare and measure the progress of the company’s diversity and inclusion initiatives and gauge how it is managing related risks, ISS said.
The proposed amendment to the proxy access right would enhance the company’s existing right for shareholders while maintaining safeguards on the nomination process.
Last year, Apple shareholders had voted down a proposal requesting that the company report on its gender and racial pay gaps, with 66.4% of votes cast against it.
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