WASHINGTON (CU)_ Apple is making environmental and social values factors when calculating bonuses for the company’s top executives, a regulatory filing on Tuesday (Jan 5) revealed.
The change, which will take effect this year, is a part of the company’s efforts to motivate its employees “to meet exceptionally high standards of values-driven leadership in addition to delivering strong financial results”.
“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 Silicon Valley tech titan said in the documents filed with the Securities and Exchange Commission.
Accordingly, based on the executives’ efforts to live up to the stated values, related to several environmental and social issues, such as sustainable energy and workplace diversity, Apple would determine if bonuses should be increased or decreased by as much as 10 per cent.
However, the iPhone maker said that there will be no changes in the financial targets and thresholds for executive bonuses.
The company noted that it has led the industry in reducing its environmental footprint for years, and intends to source 100 per cent recycled and renewable material across all its products and packaging, one day.
“We believe diversity drives innovation and is key to our success,” the company added.
