ISS urges Apple shareholders to vote for CEO Tim Cook, other execs' pay packages
Technology
Previously Apple had reduced Cook's salary target for 2023 by more than 40% to $49 million
(Reuters) - Institutional Shareholder Services (ISS), a proxy advice service, has recommended investors in Apple Inc. to support its board nominations and the compensation packages for key executives, including Chief Executive Tim Cook.
On March 10, Apple will conduct its annual shareholder meeting.
The ISS position was released by the company on Friday in a research note. Previously, the iPhone manufacturer had reduced Cook's salary target for 2023 by more than 40% to $49 million. According to the company's regulatory filings, Cook's pay will also be more influenced by how well the company's shares do in comparison to their market counterparts.
To ensure that pay magnitude is backed by ongoing solid performance by the firm, ISS wrote in a note that "continuous monitoring of the pay program is needed."
The company's management rejected both of the proxy advice firm's other recommendations, which included a resolution requiring a report on the median gender and racial pay discrepancies and an update to the proxy access right.
Support for the request for a report on the median gender and racial pay disparity is necessary, according to ISS, since it would enable investors to assess the success of the company's diversity and inclusion activities and how it is addressing associated risks.
According to the letter, the proposed modification to the proxy access right will strengthen the company's current shareholder benefit while retaining nomination process protections.
Corporate governance experts claim that historically, shareholder proposals that garner more than about 25% of the vote tend to press the board to implement reforms.
Apple shareholders rejected a motion for the business to disclose its gender and racial pay discrepancies at the company's annual meeting last year with 66.4% of the vote.
