Institutional Shareholder Services (ISS), a proxy consulting service, has recommended Apple Inc. investors to support its board nominations and the compensation plans for its top executives, including Chief Executive Tim Cook. On March 10, the iPhone manufacturer will host its annual shareholder meeting.
As Apple Inc. reduced Cook’s 2023 compensation objective by more than 40% to $49 million, the ISS took this stance. According to the company’s regulatory filings, Cook’s pay will also be more influenced by how well the company’s shares do in comparison to their market counterparts.
The percentage of stock units given to Cook that are based on Apple’s performance would rise from 50% to 75% as a result of the modifications, the company stated.
Further, the ISS also recommended investors vote for proposals including a resolution demanding a report on median gender and racial pay gaps, and an amendment of proxy access rights, both of which were opposed by the company’s management.
Support for the proposal requesting a report on the median gender and racial pay gap is warranted as it would allow investors to compare and measure the progress of the company’s diversity and inclusion initiatives and gauge how it is managing related risks, ISS said.
The proposed amendment to the proxy access right would enhance the company’s existing right for shareholders while maintaining safeguards on the nomination process.
