SAN FRANCISCO (Reuters) -Apple Inc said in its annual proxy request on Tuesday that it will modify executives’ cash bonuses based on the fact that executives act in accordance with the company’s social and environmental values.
But the iPhone maker did not specify how it would assess progress toward the company’s publicly stated goals, such as removing carbon from its supply chain.
Apple lists six values that include environmental practices such as the use of recycled materials in products, diversity and inclusion among its workforce and the privacy and security of its devices.
“Starting in 2021, an environmental, social and governance modifier based on Apple Values and other important community initiatives will be incorporated into our annual cash incentive program,” says the document.
Apple said its minimum performance requirements, goals and maximum cash bonus payments for executives will not change.
But your board’s compensation committee will use the new modifier to increase or decrease bonus payments by up to 10% “based on the compensation committee’s assessment of the performance of our appointed executive officers with respect to Apple Values and other initiatives. important members of the community during 2021. ”
The process did not detail how the committee would evaluate executives based on progress towards the goals publicly announced by Apple around their values.
In July, Apple said it plans to remove carbon emissions from its entire business, including its products and extensive supply chain, by 2030. At the time, the company said it intended to achieve 75% of the target by reducing emissions, with 25% remaining from carbon removal or compensation projects, such as planting trees and restoring habitats.
Apple cited the new modifier in its recommendation to vote against a shareholder proposal to reduce executive pay in relation to the average salary for Apple employees. CEO Tim Cook’s 2020 pay of $ 14.8 million was 256 times higher than Apple’s average pay of $ 57,783.
“The increasing remuneration of America’s executives is neither responsible for society nor sustainable for the economy, especially under the current pandemic crisis. The reduction in compensation rates (appointed director) should be included in the principles of the executive compensation program ”, says the proposal.
Stephen Nellis reporting in San Francisco Editing by Chris Reese and Matthew Lewis