Institutional Shareholder Services (ISS) recommended Apple Inc shareholders to vote against CEO Tim Cook’s bonus, citing concerns about the size and structure of his stock award.
Apple’s annual shareholder meeting will take place during the first week of March. On Wednesday, ISS stated in a letter that there are serious questions about the design and amount of CEO Cook’s share reward in FY21. Half of the awards are devoid of performance criteria.
Cook received a salary of $3 million in 2021. He also got $82.3 million in stock awards, $12 million for exceeding Apple’s objectives, $1.4 million for air travel, insurance premiums, 401(k) plan and other benefits.
In all, he made $98.7 million in 2021, opposed to the $14.8 million of the previous year. He earned 333,987 restricted stock units in his first stock issuance since 2011. This was part of the long-term equity plan. He will be eligible for extra units as of 2023.
Cook’s 2021 equity award was assessed at $75 million by ISS. According to a January filing, his income was 1,447 times that of the typical employee at the IT behemoth.
ISS stated that half of the $75 million reward is solely time-based, and the award will continue to mature in full if he retired. Apple declined to comment, referring to the company’s proxy filing, which details Cook’s performance-based pay.
The Institutional Shareholder Services group of firms (ISS) was founded in 1985 to help investors and businesses plan for long-term and sustainable success by offering insight, analytics, and high-quality data.
ISS which is primarily owned by ISS management, Genstar Capital, and Deutsche Bourse Group, is a global supplier of responsible investing solutions and corporate governance, market data, events, fund services, and editorial content to enterprises and institutional investors.