Apple has changed its corporate bylaws (PDF) to require executive officers to hold 3 times their annual base salary in stock. Non-Employee Directors are required to hold five times their annual retainer, and Tim Cook is required to hold 10 times his annual base salary in stock. The requirement for executives went into effect February 6th, with the rules for Cook and the Directors going into effect back in November.
The Wall Street Journal, via MacRumors:
Calpers discussed the new executive-ownership requirement with the Apple board before the meeting, according to Anne Simpson, head of corporate governance for Calpers, who declined to elaborate. The fund has long regarded executive stock ownership “as standard good practice,” she said. “It’s part of our conversation with all companies we engage.” Ms. Simpson said in an interview Wednesday that “there are other changes in the works related to executive pay.”
Prop No. 5, which was voted on at the recent Apple Shareholders Meeting, would have required Apple executives to hold 33% of their equity pay until retirement. Apple instead adopted the stock requirements relating to base yearly salary.
Base salary for most senior executives will be $875,000 for 2013, while Tim Cook’s salary will be $1.4 million this year. Non-employee board members each receive a $50,000 yearly retainer.
