Apple will modify executive bonuses based on environmental values ​​in 2021

SAN FRANCISCO (Reuters) -Apple Inc. said Tuesday in its annual representation filing that it will modify executive cash bonuses based on whether executives act within the company’s social and environmental values.

But the iPhone maker did not specify how it would assess progress toward the company’s published 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, the 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’s values ​​and other key community initiatives will be incorporated into our annual cash incentive program.”

Apple said its minimum performance requirements, targets and maximum cash bonus payments to executives will not change.

But the compensation committee of its board of directors will use the new modifier to increase or decrease bonus payments by up to 10% “depending on the evaluation of the performance of our executive members with respect to the compensation committee with respect to to Apple values ​​and other key community initiatives during 2021 “.

The presentation did not detail how the committee would evaluate executives based on progress toward Apple’s publicly announced goals around their values.

In July, Apple said it plans to eliminate carbon emissions from its entire business, including its products and extensive supply chain, by 2030. At the time, the company said it intended to reach 75% of the goal by reducing emissions, with the remaining 25% coming from carbon removal or offset projects such as tree planting and habitat restoration.

Apple cited the new modifier in its recommendation to vote against the shareholders ’proposal to reduce executive compensation relative to the average compensation of Apple employees. Compensation of $ 14.8 million in 2020 from CEO Tim Cook was 256 times higher than Apple’s average compensation of $ 57,783.

“U.S. executive compensation is neither socially responsible nor sustainable for the economy, especially in the current pandemic crisis. The reduction in wage relations (named executive officer) should be included in the principles of the executive compensation program, “the proposal says.