According to reports, proxy advisory firm Institutional Shareholder Services (ISS) urged Apple investors to vote for its director candidates, as well as executive compensation, including CEO Tim Cook.
Apple will hold its annual shareholder meeting on March 10.
ISS made the stance in a research note on Friday after the iPhone maker cut Tim Cook’s 2023 salary target by more than 40%, to $49 million. Tim Cook’s salary will also depend more on Apple’s market performance relative to similar stocks, according to the company’s regulatory filings.
“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 said in a research note.
The proxy advisory firm 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. Both proposals were opposed by Apple management.
ISS said the proposal to require reporting on median gender and racial pay gaps gained support because investors would be able to compare and measure companies’ progress on diversity and inclusion and measure their control over related risks.
The proxy amendment would strengthen the company’s current shareholder rights while ensuring that the nomination process is safeguarded.
Traditionally, if a shareholder proposal receives more than 25 percent of the vote in favor, it has urged the board to make changes, corporate governance experts say.
At last year’s annual shareholder meeting, 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.
