“Apple Inc earlier this month reversed its stance on a corporate-governance measure related to executive compensation, implementing a new rule that executives must hold triple their base salary in company stock,” Jessica E. Lessin and Joann S. Lublin report for The Wall Street Journal.
“The move, which hasn’t previously been reported, came even though a month earlier Apple’s board urged shareholders to oppose a very similar corporate-governance measure proposed by a shareholder,” Lessin and Lublin report. “Apple’s new executive-stock-holding requirement was implemented Feb 6., according to a notice of the policy under a ‘corporate governance’ tab on its website. The date was about a month after the company issued its proxy statement and three weeks before Wednesday’s annual meeting. The California Public Employees’ Retirement System, the biggest U.S. public pension fund, had been lobbying in favor of the change.”
Lessin and Lublin report, “Apple’s new policy requires executive officers to hold three times their annual base salary in stock, and executives have five years to satisfy it. The document also restates the company’s existing policy of requiring the CEO to hold 10 times his annual base salary and directors to hold five times their annual retainer, policies that were both mentioned in the January proxy. Board members’ retainers start at $50,000 a year, and certain committee chairs earn more.”
Read more in the full article here.
Heck, that would have been a piece-o-cake for SJ with his massive salary of $1.
haha
If RIM, err Blackberry made its executives do the same thing it would be like making them pay to work there.
Excellent rule.
This is so disingenuous that the company would have been better off not adopting this “rule” – itself full of holes. Anyone paying even casual attention knows the top brass unloaded their shares, raking in generations of wealth, before the crash. Also, anyone who doesn’t suspect that they did what they did because of inside knowledge that the company was stalling out, must not be those spouting all those Wall Street manipulation conspiracy theories as the cause of the collapse. You can’t have it both ways. If you believe moral wrongdoing outside the walls of Cupertino, you have to at least question what was going on with the insiders. If you want to check the logic of this conclusion, look no further than this very MDN story. Why the new rule unless Cook & Co. wanted to cover their asses to satisfy complaining AAPL shareholders like me. Here’s a flash for Tim: I won’t stop complaining until you are gone and someone comes in with a vision to rekindle the innovative culture that once made Apple Inc. such a great company.
sigh…
Having to buy more and more Apple stock as the price drops doesn’t seem like a very good way to “cover their asses.”
Also, the return key is an excellent tool in organizing thoughts, presenting your ideas and making them understandable.
He’s a troll so he wasn’t raised with keyboarding skills.
I’m sure Tim Cook gives fsck what some random nobody on the internet thinks. I certainly don’t. You’re simply tiresome. go away.
Zeke, there’s a phone call for you. Oh wait, it’s for PPeterson, it’s Tim. Nevermind Zeke.
Here’s a flash for you peepeterson, I am not going to stop complaining untill YOU are gone from posting on this web site. iCaled
Sell dates and quantities sold, please.
Give that data or shut up.
Anyone can make claims like you’ve made. Accusing Apple executives of “inside knowledge” is bordering on slander. Do you have proof?
Executives are only allowed to unload shares during pre-set windows so that they cannot time the market.
PPeterson : I can’t say whether or not the top brass unloaded their shares because they had inside information. Although it does happen regularly with many companies. Some are caught, most are not. It is after all the people at the top that have the inside information generally, not the people at the bottom. My guess is that if you accused Samsung, Google or Microsoft of these acts you would not be attacked violently here. Rather, people would be piling on and pissing all over themselves to agree with you. But you mentioned Apple so it’s no surprise. I tend to think that the upper management simply sold their shares to make money. They are after all capitalists you know. Me too only on a much smaller scale. I’m glad to see that they made money. Money is good. Same goes for anyone at the top of Google, Samsung or Microsoft. Or at the bottom. Working hard and making great things doesn’t mean that you can’t profit by it. Personally I say make all you can as long as it is done honestly. But to be honest, three times their salary is not much money. At least not for them. Because they don’t make their money in salary, they make it in stock options and bonuses. And that’s great! Sounds good to me. I’ll have some of what they’re having!
And your experience in running transnational companies (that allows you to be snippy about Tim Cook) is ….. ?
Tim Cook and his team are SO far beyond the people running most tech companies, it’s a joke. All mobile companies between them can barely come up with one innovative idea between them. I really don’t think you have much to complain about.
While all the language arts, legal, and logic advice and name calling is one way to use MDN’s space, it doesn’t do much to address the problem with this company. My conclusion does. Other than the Wall Street conspiracy theories, what do any of you have to offer as the cause of the collapse of AAPL? Or, why do you think the stock falls off EVERY TIME the hapless, clueless Mr. Cook opens his mouth in a public forum? Just wonderin’…
It’s a TP thing PeePee…
If you want a cause try reading the news for once on your life. You’d find that Fidelity and another large fund manager both dumped roughly 10% of the outstanding shares of AAPL between September and December. How anything Tim Cook could have done would have prevented that remains a mystery. Whether it was rebalancing, tax selling, manipulation, or a combination of all three I don’t know, and neither do you.
Dear big investors of AAPL, tonight Apple is hitting its 52 weeks low , I am already very scared and frustrated that I decide to surrender all of my AAPL I bought at $680 . I don’t want to see AAPL to fall to $300 . I give up !