At the recent annual shareholders' meeting, Apple Inc. (AAPL, Financial) successfully passed three internal proposals: executive compensation, board nominations, and appointing Ernst & Young as the company's financial auditor. Eight board nominees were introduced, including CEO Tim Cook. Notably, several long-serving board members, such as Chairman Arthur Levinson, continue to play crucial roles. Levinson has served for 24 years, marking him as Apple's longest-serving independent director, and is expected to retire by 2025 or 2026.
Shareholders also approved the 2024 compensation plan for Tim Cook and other executives, with Cook's total compensation rising by 16% to $74.61 million. This increase is justified by the over $3 trillion growth in Apple's market value during his tenure. Additionally, Apple confirmed Ernst & Young's role as its financial auditor, a position it has held since 2022.
Several controversial proposals from external shareholders were rejected, including one challenging Apple's Diversity, Equity, and Inclusion (DEI) hiring policies. Apple defended these policies as key to fostering innovation and asserted their compliance with labor laws. Other rejected proposals involved ethical AI data usage, child abuse material software costs, and charity donation reporting, which Apple argued could restrict its operations and charitable standards.
Tim Cook shared the company's strategic moves, highlighting a $500 billion U.S. investment plan and ongoing dividend increases. Over the past four fiscal quarters, Apple paid $15.3 billion in dividends, with cumulative payouts exceeding $165 billion. Analysts at Morgan Stanley highlighted the alignment between Apple's stable dividend policy and shareholder consensus, underscoring the effectiveness of Apple's governance in maintaining investor trust.
