Exact plan to modify executive bonuses not revealed yet
Apple raised the issue after recognizing the gap between executive and employee. Chief Executive Tim Cook received around $14.8 million in 2020. The figure is at least 256 times greater than Apple’s $57,783 compensation.
Quoted from Reuters, Apple mentioned though a proposal that, “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 in the principles of executive compensation program.”
Accordingly, the board of directors’ compensation will be “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 new modifier could add or cut the bonus up to 10%. However, the minimum performance requirements, targets, as well as maximum cash bonuses given to the executives, will remain the same. Apart from the mentioned points above, Apple has not disclosed any further details regarding the modification.
Apple said its minimum performance requirements, its targets and its maximum payouts of cash bonuses to executives will not change.
Read also: Apple Testing of Foldable iPhone, Launching in 2022-2023
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