What you need to know
- Apple is changing how its executives get their cash bonuses.
- The company is incorporating environmental and social goals into its bonus structure.
As reported by Reuters, Apple has said in an annual proxy filing that it will be making some changes to the cash bonuses for its executives. According to the filing, bonuses will begin to be earned if progress is made towards the company's social and environmental goals.
The filing says that the changes will go into effect this year.
"Beginning in 2021, an environmental, social, and governance modifier based on Apple Values and other key community initiatives will be incorporated into our annual cash incentive program."
The company's bonus structure used to be based mostly on financial results, so this is another strong indicator that Apple is taking its commitment to the environment and social initiatives seriously. The company says that it hopes the changes further push its executives to follow values-driven leadership.
"This change is intended to further motivate Apple's executive team to meet exceptionally high standards of values-driven leadership in addition to delivering strong financial results."
Apple has made a number of environmental moves in recent history. The company removed the power adapter and headphones from the box of the iPhone. All of the company's retail and corporate locations run on renewable energy. The company has also set a goal to become completely carbon neutral by 2030.