Today, Apple submitted its annual proxy report for shareholders in advance of its yearly meeting set for next month. The report provides updated details about Tim Cook’s compensation for 2024 and encourages shareholders to reject a proposal aimed at terminating its diversity, equity, and inclusion (DEI) initiatives.
The latest proxy filing shows that Tim Cook’s salary increased by 18% in 2024 compared to the previous year. Cook received a base salary of $3 million, alongside $58.1 million in stock awards and $13.5 million in supplementary compensation, totaling $74.6 million. According to Bloomberg, most of this salary hike is attributed to “a rise in stock award value.”
During the annual shareholders meeting next month, investors will have the opportunity to vote on four external proposals. Apple is advising shareholders to oppose these proposals, particularly one that seeks to end its DEI programs.
This shareholder proposal, brought forth by the National Center for Public Policy Research, a conservative think tank, argues that DEI efforts “pose litigation, reputational and financial risks to companies, and hence financial risks to their shareholders, leading to potential violations of fiduciary duty.”
The proposal asserts that Apple’s “Inclusion & Diversity” policies are “as radical as, if not more so than, the majority of corporate DEI programs.”
However, Apple suggests that shareholders reject this proposal for the following reasons:
- The proposal is redundant since Apple already has a comprehensive compliance program in place, and it inappropriately seeks to limit the company’s discretion in managing its regular business operations, workforce, and corporate strategies.
- Our Board and management actively oversee legal and regulatory risks and compliance across our global operations.
Apple emphasizes:
At Apple, we understand that our conduct is just as vital to our success as crafting the finest products. We aim to operate ethically, transparently, and in accordance with applicable laws, and our Business Conduct and Compliance policies form the bedrock of our operations. We are dedicated to fostering a culture of belonging, enabling everyone to perform at their best.
Apple’s stance against this shareholder proposal contrasts with recent moves by several companies that have reduced or halted their DEI initiatives. Meta announced today plans to scale back its DEI programs, following similar decisions from Amazon, Walmart, Ford, and others.
Furthermore, Apple’s board advises shareholders to vote against three additional proposals:
Report on Ethical AI Data Acquisition and Usage
- Apple has a proven history of safeguarding user privacy and a solid framework for incorporating ethical concerns into our technology, as emphasized in our Responsible AI principles.
- The requested report is unnecessary, as Apple already discloses all relevant details regarding its AI data privacy practices.
- This proposal does not specifically address any issues related to Apple Intelligence; rather, it targets OpenAI, the creator of ChatGPT, which is an independent service that Apple users may choose to engage with, while mistakenly referencing controversies unrelated to Apple.
Report on Costs and Benefits of Child Sex Abuse Material-Identifying Software & User Privacy
- Apple has shown a strong commitment to protecting children within the evolving online environment and developed pioneering technologies like Communication Safety.
- We believe our current approach to child safety, which is shaped by engagement with stakeholders, is more suitable than the universal surveillance proposed, which could have serious repercussions for our users’ human and civil rights worldwide.
Report on Charitable Giving
- Apple has a well-established corporate donations framework that adheres to rigorous internal governance and approval processes, and this proposal seeks to inappropriately limit Apple’s ability to manage its standard business operations and strategies.
- Our Board and management actively oversee legal and regulatory compliance and risks related to our global business activities.
Apple’s annual shareholder meeting is scheduled for February 25. You can access the complete proxy filing with information regarding shareholder proposals and executive compensation below.
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