Apple will adjust driver bonuses based on environmental values ​​in 2021

SAN FRANCISCO (Reuters) -Apple Inc said on Tuesday in its annual proxy filing that it will adjust executive cash bonuses based on whether the executives act within the company’s social and environmental values.

But the iPhone maker did not specify how it would evaluate progress toward the company’s publicly stated goals, such as removing carbon from its supply chain.

Apple lists six values ​​that encompass environmental practices, such as the use of recycled materials in products, diversity and inclusion among its employees, and the privacy and safety of its devices.

“Starting in 2021, an environmental, social and governance modifier based on Apple Values ​​and other significant community initiatives will be included in our annual cash incentive program,” the application said.

Apple said the minimum performance requirements, targets, and maximum cash bonus payouts to executives will not change.

But the compensation committee of the board of directors will use the new modifier to increase or decrease bonus payouts by up to 10% ‘based on the compensation committee’s evaluation of the performance of our said executives with respect to Apple’s values ​​and other important community initiatives during 2021. “

The filing did not detail how the committee would assess executives based on progress toward Apple’s publicly announced goals around its values.

In July, Apple said it plans to cut carbon emissions from its entire business, including its products and its expanded supply chain, by 2030. At the time, the company said it wanted to achieve 75% of its goal by reducing emissions, with the remaining 25% coming from carbon removal or offsetting projects such as planting trees and restoring habitats.

Apple cited the new change in its recommendation to vote against a shareholder proposal to lower executive pay compared to Apple’s average employee wages. Chief Executive Tim Cook’s 2020 fee of $ 14.8 million was 256 times higher than Apple’s average fee of $ 57,783.

“America’s rising executive pay is neither responsible for society nor sustainable for the economy, especially in the current pandemic crisis. Lowering the (appointed executive officer) pay ratios should be incorporated into the principles of the executive pay program, ”the proposal reads.