Apple Executives and Directors Required to Hold 3x - 10x Base Salary in AAPL Stock

Apple has changed its corporate bylaws [PDF] to require executives officers to hold three times their annual base salary in stock, with Non-Employee Directors holding five times their annual retainer and Tim Cook required to hold ten times his annual base salary in stock.

The requirement for executives went into effect February 6th, while the requirement for Cook and the Directors went into effect back in November.

From The Wall Street Journal:

Calpers discussed the new executive-ownership requirement with the Apple board before the meeting, according to Anne Simpson, head of corporate governance for Calpers, who declined to elaborate. The fund has long regarded executive stock ownership "as standard good practice," she said. "It's part of our conversation with all companies we engage." Ms. Simpson said in an interview Wednesday that "there are other changes in the works related to executive pay."

Proposal No. 5, an item that was voted on at the recent Apple Shareholder's Meeting, would have required executives to hold 33 percent of their equity pay until retirement. Apple felt this requirement was too onerous and instead adopted stockholding requirements relating to base yearly salary.

The base salaries of most senior executives will be $875,000 for 2013, while Tim Cook's salary will be $1.4 million this year. Non-employee board members receive a $50,000 yearly retainer.

Top Rated Comments

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100 months ago

So if Steve Jobs was still here, his $1 salary would mean....


I really think you need to move on, let Steve go buddy. We have Tim and Jonny and the team now. I know bereavement is tough. However you got to let it go.
Score: 41 Votes (Like | Disagree)
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100 months ago
So if Steve Jobs was still here, his $1 salary would mean....
Score: 16 Votes (Like | Disagree)
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100 months ago
1.4 mil doesn't sound like much.
Score: 8 Votes (Like | Disagree)
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100 months ago

I really think you need to move on, let Steve go buddy. We have Tim and Jonny and the team now. I know bereavement is tough. However you got to let it go.

Pretty sure it was a joke. Don't know how that qualifies as bereavement.
Score: 7 Votes (Like | Disagree)
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100 months ago

It's also 40 times the average retail store employee's salary and 245 times the average salary of somebody assembling the products.

It's all relative.


From my experience, the consequences of his decisions merits at least 40x that of any retail employee.
Score: 7 Votes (Like | Disagree)
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100 months ago
Good to see. More companies should take this approach. I've always felt that the higher up the food chain you are, the more your compensation should be based on company performance. For CEOs it should be 75% to 90% of the total package. Company takes a loss for the year, then your pay goes way down. Companies that pay executives bonuses when they lose money should be driven out of business.
Score: 5 Votes (Like | Disagree)

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