Norwegian sovereign wealth, worth $1.3 trillion, is voting against Apple management’s pay plan. Here’s everything you need to know about it.
Norwegian sovereign wealth to vote against Apple’s Pay policies
On March 4, Apple is conducting its annual meeting of shareholders. According to Refinitiv’s data reports, the Norwegian fund is the owner of 1.03 percent of Apple’s shares, making it Apple’s eighth-largest shareholder. Tim Cook, the Apple CEO’s pay for 2021 was 1,447 times that of an average employee at the firm according to a filing. Fuelled by stock awards, Cook earned a grand sum of $98.7 million. The bond is going to vote against the firm’s payment practices.
“A substantial proportion of annual remuneration should be provided as shares that are locked in for five to ten years, regardless of resignation or retirement,” stated the Norges Bank Investment Management (NBIM). “The board should provide transparency on total remuneration to avoid unacceptable outcomes. The board should ensure that all benefits have a clear business rationale,” they added. The firm is aiming to become more active in matters related to social, environmental, and governing.
Tim Cook’s payment and Apple’s pay policy for the CEO
As of December 31, 2020, the fund owned 1 percent of Apple. They stated that the board “should provide transparency on total remuneration to avoid unacceptable outcomes”. The fund’s move is very similar to the recommendation by the Institutional Shareholder Services (ISS) in 2015. The proxy voting group is highly influential and stated that they have a significant concerto with the stick award given to Tim Cook. Cook revived stock awards worth $82 million in addition to a $3 million salary and a $12 million cash bonus. Additionally, Cook’s payment package at Apple comes with $630,630 in security and $712,488 for a private jet.