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

152516 apple logoApple 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.

Popular Stories

iPhone 15 Pro Cameras

iPhone 17 Pro Max Will Be First Model to Feature Three 48MP Cameras

Thursday July 11, 2024 12:20 am PDT by
Next year's iPhone 17 Pro Max will feature an upgraded 48-megapixel Tetraprism camera for enhanced photo quality and zoom functionality, according to Apple analyst Ming-Chi Kuo. In his n-iphone-tetraprism-upgrade-ca62dd37e364">latest investor note published to Medium, Kuo said the key specification change would be a 1/2.6" 48MP CIS sensor, up from the 1/3.1" 12MP sensor expected to be used...
Beyond iPhone 13 Better Blue Face ID Single Camera Hole

10 Reasons to Wait for Next Year's iPhone 17

Monday July 8, 2024 5:00 am PDT by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models simultaneously, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different – already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
maxresdefault

Apple's AirPods Pro 2 vs. Samsung's Galaxy Buds3 Pro

Saturday July 13, 2024 8:00 am PDT by
Samsung this week introduced its latest earbuds, the Galaxy Buds3 Pro, which look quite a bit like Apple's AirPods Pro 2. Given the similarities, we thought we'd compare Samsung's new earbuds to the AirPods Pro. Subscribe to the MacRumors YouTube channel for more videos. Design wise, you could potentially mistake Samsung's Galaxy Buds3 Pro for the AirPods Pro. The Buds3 Pro have the same...
primeday2020 feature3

The Best Early Prime Day Deals on Apple Products

Saturday July 13, 2024 6:23 am PDT by
Amazon is soon to be back with its annual summertime Prime Day event, lasting for just two days from July 16-17. As it does every year, Prime Day offers shoppers a huge selection of deals across Amazon's storefront, and there are already many deals you can get on sale ahead of the event. Note: MacRumors is an affiliate partner with Amazon. When you click a link and make a purchase, we may...

Top Rated Comments

abz1981 Avatar
148 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)
komodrone Avatar
148 months ago
So if Steve Jobs was still here, his $1 salary would mean....
Score: 16 Votes (Like | Disagree)
Compile 'em all Avatar
148 months ago
1.4 mil doesn't sound like much.
Score: 8 Votes (Like | Disagree)
bdavis89 Avatar
148 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)
bassfingers Avatar
148 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)
glenthompson Avatar
148 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)