Apple Executives Subjected to New AAPL Stock Requirement
Marking quite the reversal of policies for the Cupertino, California-based Mac-maker, the WSJ confirms that Apple has changed its longstanding position on stock ownership and executive compensation. This month, the company implemented a new rule requiring executive officers to hold triple their base salary in AAPL stock.
"Non-Employee Directors" must hold 5x their annual retainer and CEO Tim Cook is required to hold 10x his annual base salary in AAPL stock.
Confirmation of the new rule comes just 24 hours after Apple's annual shareholders meeting, where revisions were proposed and voted on with regard to Apple's corporate governance and executive compensation requirements. What's peculiar, however, is that shareholders voted down a proposal yesterday that was eerily similar to the executive stock holding requirement enacted during the first week of February.
The base salaries for the majority of senior executives sits at $875,000 for 2013. Apple's CEO Tim Cook pulls down a salary of $1.4 million (for 2013 at least). Non-employee board members are compensated $50,000 per year in their retainer fee.