Apple lists six values that incorporate environmental practices such as the use of recycled materials in products, the diversity and inclusion of its workforce, and the privacy and security of its devices.
“Starting in 2021, an environmental, social and management modifier based on Apple values and other key community initiatives will be integrated into our annual cash incentive program,” she said.
Apple said the minimum performance requirements, targets, and cash bonuses to executives would not change.
But its Board of Directors Compensation Committee will use the new amendment to increase or decrease bonus payments by up to 10% “based on the Compensation Committee’s assessment of the performance of its appointed executives in relation to Apple Values and other key community initiatives during 2021.”
The filing did not explain how the committee would evaluate executives based on progress toward Apple’s publicly stated goals about their values.
In July, Apple said it planned to completely eliminate carbon emissions from its business, including its products and sprawling supply chain, by 2030. At that time, the company said it was aiming to achieve 75 percent of the goal by reducing emissions, with the remaining 25. The percentage comes from carbon removal or offset projects such as tree planting and habitat restoration.
Apple cited the new rate in its recommendation to vote against a shareholder’s proposal to cut CEO pay relative to Apple’s average employee wage.
CEO Tim Cook’s 2020 compensation of $ 14.8 million was 256 times greater than Apple’s average compensation of $ 57,783.
“The inflated US compensation for executives is neither responsible for society nor sustainable for the economy, especially in light of the current epidemic crisis, the reduction in wage rates (the designated executive official) should be included in the principles of the executive compensation program,” she added.