Tim Cook’s Salary, AI, Human Rights: The Votes at Apple’s Shareholder Meeting
As a public company, Apple has obligations that an owner-managed company is spared. In addition to the quarterly annual report, an AG must invite shareholders once a year, submit a report, and vote on proposals. The Board of Directors is elected every year. The management puts two additional points to the vote. There are also five further applications that revolve around human and civil rights, equality, and the use of AI in the company. The report part of the 110-page-long invitation letter calculates in detail how much the Apple CEO earned in 2023.
Changes to the Supervisory Board
Al Gore and James Bell are leaving the supervisory board. Apple nominated Dr. Wanda Austin to join the panel. Apple also seeks to have its accounting checked by Ernst & Young again. This has already happened in recent years – costing a good $22 million in 2022 and $25 million for 2023. The third application from the management asks to approve the salary distribution for the named executive officers (NEO). Although the shareholder vote would not be binding for management, it would have an influence on the decision.
Tim Cook’s Salary
Pages 62 to 74 of the report contain explanations of CEO salaries. Tim Cook receives a base salary of $3 million annually, while the four others (Luca Maestri, Kate Adams, Deirdre O’Brien, and Jeff Williams) each receive $1 million. In addition, there are share packages and other compensation, partly performance-dependent. For Tim Cook, this adds up to 63 million for 2023, a reduction from over 99 million dollars in 2022. Apple already proposed this change last year. The four other executives received an average of almost $27 million in 2023.
Management Rejects Further Applications
For the five additional proposals for voting, Apple recommends that shareholders reject them. They dedicate an extensive justification to each individual. The tone: Apple cares deeply about the issue in question and is doing enough to address it. When applying for the use of AI, management also states that such a report would include strategic planning, resulting in competitive disadvantages. The applications specifically require:
- EEO Policy Risk Report
- Report on Ensuring Respect for Civil Liberties
- Racial and Gender Pay Gaps Report
- Report on Use of AI
- Congruency Report on Privacy and Human Rights
Voting is Likely a Formality
Over the past few decades, shareholders have largely adhered to management’s recommendations. The shareholders’ meeting will take place on February 28 at 12:00 p.m. Eastern time, i.e. 6:00 p.m. local time.