As part of its governance rules, Apple recently altered its requirements in regards to executive compensation and stock ownership. As of February 6, Apple executives and board members will be forced to own a hefty amount of shares, in accordance with salary.
The Wall Street Journal reports the changes to Apple's governance rules were enacted this month, even though the board pushed back on a similar proposal just one month ago from a shareholder. Going forward, Apple executives must own stock in the company equal to three times their salary.
Additionally, non-Apple employed board members must own five times their annual cash retainer. Company CEO Tim Cook is required to maintain 10 times his base salary in Apple stock equal to the fair market value. The parties have five years to satisfy the requirement.
Apparently, the subject was approached during the recent Apple shareholder's meeting. The so-called Proposal No. 5 would have forced executives to maintain 33-percent of equity pay until retirement. Instead, the changes to stock ownership were passed. The requirement was apparently passed onto Tim Cook last November.
MacRumors states the base salary of most of Apple's senior executives is $875,000. Tim Cook will be compensated $1.4 million in 2013. The board of directors — non-employee — are paid a $50,000 cash retainer per year.
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