Institutional Shareholder Services (ISS) has urged Apple Inc. (AAPL.O) shareholders to vote on its director nominees and top executives’ pay packages, including Chief Executive Tim Cook.
On March 10, Apple will hold its annual shareholder meeting.
The ISS position, which was published in a research note on Friday, comes after Apple reduced Cook’s 2023 compensation target by more than 40% to $49 million. Cook’s salary will also be determined by how well the company’s shares perform in comparison to market peers, according to regulatory filings.
“Continuous monitoring of the pay program is warranted to ensure that pay magnitude is supported by the company’s continued strong performance,” ISS wrote in a note.
The proxy advisory firm also advised investors to vote for resolutions demanding a report on median gender and racial pay gaps, as well as an amendment to 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, according to ISS, because it would allow investors to compare and measure the progress of the company’s diversity and inclusion initiatives, as well as gauge how it is managing related risks.
The proposed amendment to the proxy access right would strengthen the company’s existing shareholder rights while maintaining nomination process safeguards, according to the note.
According to corporate governance experts, shareholder proposals that receive more than 25% support of votes cast typically compel the board to make changes.
Apple shareholders voted down a proposal requesting that the company report on its gender and racial pay gaps at last year’s annual meeting, with 66.4% voting against it.
