Apple revealed in its Notice of 2021 Annual Meeting of Shareholders and Proxy Statement that it will incorporate ESG considerations into its executive compensation program. According to the filing, the company will introduce a modifier to bonus payouts, increasing or decreasing bonuses by up to 10% based on executive performance with respect to “Apple Values” and other community initiatives.
In its proxy filing, the company stated:
“Beginning in 2021, an environmental, social, and governance modifier based on Apple Values and other key community initiatives will be incorporated into our annual cash incentive program. This change is intended to further motivate Apple’s executive team to meet exceptionally high standards of values-driven leadership in addition to delivering strong financial results.”
Although the filing did not outline specific targets or initiatives that will be used by the new modifier, the company’s ESG program lists a series of Apple Values initiatives, covering topics including accessibility, education, environment, inclusion & diversity, privacy, and supplier responsibility. Apple’s environmental goals include an ambitious target introduced in July 2020 to become carbon neutral across its manufacturing supply chain and product life cycle by 2030.