Apple Rejects Investor Demands to Halt DEI Initiatives: “We Aim to Foster a Sense of Belonging”

Today, Apple submitted its annual proxy statement to shareholders in anticipation of the upcoming annual meeting next month. The filing discloses fresh details regarding Tim Cook’s compensation for 2024 and suggests that shareholders reject a proposal aimed at terminating the company’s diversity, equity, and inclusion (DEI) initiatives.

According to the proxy report, Tim Cook’s compensation increased by 18% in 2024 compared to the previous year. He received a base salary of $3 million, alongside $58.1 million from stock awards and an additional $13.5 million in other compensation, resulting in a total of $74.6 million. As noted by Bloomberg, the majority of this increase is attributed to “a rise in stock award value.”

Shareholders will vote on four external proposals during the annual meeting next month, with Apple advocating for a rejection of these proposals, one of which seeks to eliminate the company’s DEI initiatives.

The proposal, put forth by the conservative think tank National Center for Public Policy Research, argues that DEI initiatives present litigation, reputational, and financial threats to companies, and thus to their shareholders, which could further jeopardize company compliance with fiduciary duties.

It claims that Apple’s policies surrounding inclusion and diversity are “as radical, if not more so, than most corporate DEI programs.”

In response, Apple advises shareholders to vote against the proposal for the following reasons:

1. The proposal is unwarranted, as Apple already has a robust compliance program in place. Furthermore, it inappropriately seeks to limit Apple’s ability to manage routine business operations, team dynamics, and strategic direction.
2. Our Board and management actively supervise legal and regulatory compliance across our global operations.

The company states:

“At Apple, we believe that our conduct is as essential to our success as creating the world’s finest products. We strive to operate ethically, transparently, and in line with applicable laws and regulations. Our policies on Business Conduct and Compliance are fundamental to our operations, and we aim to foster an inclusive culture where everyone is empowered to perform their best.”

Apple’s stance against this shareholder initiative comes as numerous other corporations have made cuts to or eliminated their DEI programs recently. Meta, for instance, announced rollbacks to its DEI initiatives today, following recent decisions from companies like Amazon, Walmart, Ford, and several others.

Moreover, Apple’s board suggests that shareholders reject three additional proposals:

Report on Ethical AI Data Acquisition and Usage

• Apple has a commendable history of safeguarding user privacy and a solid approach to embedding ethical standards within our technology, evidenced by our Responsible AI principles.
• The requested report is redundant since Apple already discloses all necessary information relating to its AI data privacy practices.
• The proposal fails to point out specific issues linked to Apple Intelligence, instead critiquing OpenAI, the creator of ChatGPT, an independent service accessible to Apple users, and misattribute controversies unrelated to Apple.

Report on Costs and Benefits of Child Sex Abuse Material-Identifying Software & User Privacy

• Apple is dedicated to protecting children in a rapidly evolving online landscape and has pioneered innovative technologies such as Communication Safety.
• We believe that our current strategy regarding child safety, informed by extensive stakeholder engagement, is more suitable than the universal surveillance recommended by the proposal, which could significantly compromise our users’ human and civil rights globally.

Report on Charitable Giving

• Apple has a well-defined corporate donations program that adheres to stringent internal governance and approval protocols. The proposal attempts to unduly constrain Apple’s ability to oversee its ordinary business operations and strategies.
• Our Board and management actively supervise legal and regulatory compliance within our global operations.

The annual shareholders meeting is scheduled for February 25. Additional details on shareholder proposals and executive compensation can be found in the complete proxy filing below.