Apple Shareholders Approve Executive Pay Packages, Reject China Audit

Apple shareholders voted to approve the company's executive pay packages and rejected an independent audit of its operations in China during the company's annual virtual meeting on Tuesday, according to preliminary tallies shared during the proceedings.



Led by Chief Executive Officer Tim Cook and outgoing General Counsel Kate Adams, the meeting largely aligned with the board's recommendations. Investors ratified Ernst & Young as Apple's independent auditing firm and approved the company's executive compensation program. Apple disclosed earlier this year that Cook's total compensation for last year was roughly $74 million. In a notable exception to corporate policy, Arthur Levinson will remain in his role as nonexecutive chairman despite surpassing Apple's customary retirement age of 75.


The defeated shareholder proposal called for a detailed report on Apple's reliance on China for product manufacturing. Apple had urged investors to vote against the measure, describing it as unnecessary. The company said the proposal was unnecessary, noting that as a public company operating in more than 50 countries and regions, it already regularly updates investors about its global presence and any material risks to the business. Shareholders usually follow the board's recommendations, though they broke with management in 2022 by approving several third-party proposals.

The vote comes as Apple continues efforts to diversify its supply chain. Over the past decade, the company has expanded assembly operations in India and Vietnam to reduce geopolitical exposure tied to Chinese facilities.

During the question-and-answer session, Cook highlighted Apple's push to increase domestic production. He pointed to the recent confirmation that Apple will produce Mac mini desktop computers in Houston later this year to serve U.S. demand. Cook also said the company's advanced AI server manufacturing in Texas is running ahead of schedule. The expanded operations are expected to create thousands of jobs and will be supported by a new advanced manufacturing center in the city offering hands-on training from Apple experts to students, supplier employees, and American businesses.

When asked about capital allocation, Cook told shareholders that Apple plans to continue increasing its annual dividend while prioritizing investments in emerging technologies such as artificial intelligence. He said the company first makes the investments it believes are necessary to grow the business, innovate, and support its product and services roadmap, calling long-term innovation the biggest driver of shareholder value.


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[via Bloomberg, Reuters]