Apple made it clear to executives that it won’t be enough to simply talk about protecting the environment. Starting in 2021, the amount of cash bonuses will be impacted by how well each executive lives up Apple’s values.
A proxy statement filed with the FCC and made available to shareholders on Tuesday says, “an environmental, social, and governance modifier based on Apple Values and other key community initiatives will be incorporated into our annual cash incentive program.”
The statement also spells out what the company’s values are. Aside from “considering the environment in everything we do,” Apple is committed to diversity and accessibility — not just for its employees, but also for users of its products. And there’s also the company’s oft-repeated “Apple believes privacy is a human right.”
Bonus are now tied to how well executives adhere to the values. “This change will further motivate Apple’s executive team to meet exceptionally high standards of values-driven leadership in addition to delivering strong financial results,” the company noted in its proxy statement.
And it won‘t be a token amount. “The Compensation Committee will use the modifier to determine whether to increase or decrease the bonus payouts by up to 10%,” said Apple.
And watching out for antitrust problems
The Apple proxy statement also mentions that, “The Audit Committee and Board regularly review and discuss with management Apple’s antitrust risks. Apple’s Antitrust Compliance Officer is responsible for the development, review, and execution of Apple’s Antitrust Compliance Program and regularly reports to the Audit Committee.”
Regulators around the world are looking hard at Big Tech, and that includes Apple. But so far, much of the attention has been on Facebook and Google.