Apple execs and directors have to hold AAPL stock that's three, five times their salary

New Apple law means execs and directors must hold stock equating to three, five times their salary

Apple has implemented a new rule that means its executives have to hold triple their base salary in AAPL stock.

In addition, Non-Employee Directors must hold five times their annual retainer, and Apple CEO Tim Cook must hold ten times his annual base salary in AAPL stock, according to Modmyi.

The move was implemented on 6 February, according to the Wall Street Journal report. Apple posted a notice on its website on 6 February, one month after it first issued its definitive proxy statement, according to Apple Insider.

This is despite the fact that Apple's board had urged shareholders at its shareholder meeting on Wednesday to oppose a similar measure. Proposition 5 was titled "Shareholder Proposal Entitled Executives to Retain Significant Stock," and it recommend that executives retain 33% of their stock holdings until retirement. It was proposed by a shareholder.

The change was discovered in a Securities and Exchange Commission (SEC) filing yesterday. The filing also revealed that all members of Apple's Board of Directors, apart from Apple CEO Tim Cook, received 562 restricted stock units as part of an automatic grant. Those shares are currently worth over $230,000, writes Apple Insider.

That same notice stated that board members' retainers start at $50,000 per year. The base salaries for the majority of senior executives in 2013 was $875,000 and Cook is thought to have had salary of $1.4 million.

Last year a number of Apple executives sold of shares. For example, in November 2012 we reported that Apple's Bob Mansfield, senior vice president of the newly created Technologies role at Apple, has cashed in more than $20 million worth of Apple shares. In December we reported that Apple's Mr Fix it Eddy Cue had cashed in $8.8m AAPL stock for $8.8 million. In addition, in May we reported that Apple's Senior Vice President (no longer employed by Apple now) Scott Forstall, and director at Apple, Millard Drexler, had sold thousands of Apple shares worth millions of pounds. Many Apple executives are incentivised with share packages that mature at a certain date, which may explain the sell offs.

Follow Karen Haslam on Twitter / Follow MacworldUK on Twitter

Einhorn says iPrefs are a 'win-win' for Apple

Apple violating SEC laws and causing 'actual and imminent injury' to investors, claims Greenlight

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesApplepersonnelwall street journalApple Business

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Karen Haslam

Macworld U.K.
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?