ISS Urges Apple Shareholders to Vote for Cook and Executive Pay Plans

The Institutional Shareholder Services (ISS), a proxy consultancy firm, has urged Apple investors to vote in favour of the company's director candidates, including CEO Tim Cook, and the senior executives' salary management plans. ISS released a research note on Friday, in which it expressed support for the proposals to cut Cook's salary target by over 40% and to tie it to Apple's market performance relative to similar stocks, as revealed in the company's regulatory filings. ISS also advised shareholders to vote for several proposals, including a resolution requiring Apple to report median gender and racial pay gaps, and a proxy amendment.

ISS's Recommendations

ISS has called on Apple shareholders to vote in favour of the director candidates and senior executives' pay plans. The proxy consultancy firm believes that there is a need for ongoing monitoring of compensation plans to ensure that the size of compensation is supported by the company's continued strong performance. ISS also supports the proposals to cut Cook's salary target and to link it to the company's market performance relative to similar stocks.

In addition, ISS recommends voting in favour of the proposal requiring Apple to report median gender and racial pay gaps. The firm believes that investors would be able to compare and measure companies' progress on diversity and inclusion and measure their control over related risks. ISS also supports the proxy amendment, which would strengthen the company's current shareholder rights while ensuring that the nomination process is safeguarded.

Opposition by Apple Management

The proposal to require reporting on median gender and racial pay gaps, as well as the proxy amendment, were both opposed by Apple management. However, ISS believes that the proposal gained support because it would allow investors to compare and measure companies' progress on diversity and inclusion and measure their control over related risks.

Traditionally, if a shareholder proposal receives more than 25% of the vote in favour, the board is urged to make changes, according to corporate governance experts. Last year, Apple shareholders voted against a proposal requiring the company to report gender and racial pay gaps, with 66.4% of shareholders voting against the proposal.

Annual Shareholder Meeting

Apple is set to hold its annual shareholder meeting on March 10. The company's board of directors has recommended voting in favour of the director candidates and the senior executives' pay plans. Shareholders will have the final say on these proposals and others at the upcoming meeting.

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