In one of the Apple Inc.’s biggest board shakeup in years, longtime directors Al Gore and James Bell will retire from the company, with the former Aerospace Corp. CEO joining. , Wanda Austin.
The company made the announcement Thursday, citing a policy that directors do not run for re-election after age 75. Bell, a former Boeing Co., joined Apple’s board of directors in 2015, while former U.S. Vice President Gore has been a director for more than two decades. Both men are 75 years old.
The shake-up is unusual for Apple’s board, which rarely sees more than one retirement at a time. Gore was the longest-serving member — he joined in 2003, when co-founder Steve Jobs was CEO and the iPhone didn’t yet exist.
“Al has made incredible contributions to our work – from his unwavering support for protecting our users’ privacy, to his incomparable knowledge of environmental and climate issues,” Apple CEO Tim Cook said. in a press release. “James’ dedication has been extraordinary, and we are grateful for the important insights and deep expertise he has given us in auditing, finance and more over the years.
Austin, the new nominee, has significant experience in “promoting innovation and developing business strategy,” Apple said. It has long been a leading supporter of US space exploration efforts, although it is not an area in which Apple is directly involved. She will be up for election at the company’s annual shareholder meeting on Feb. 28.
Despite the age policy, another director, Ronald Sugar, turns 76 this year and is not expected to leave the board. Apple said Sugar remained “in consideration of recent significant transitions in board membership and the benefit of retaining directors who have developed a deep understanding of the company during their tenure.”
Given Apple’s stated reasons for keeping Sugar, it’s unclear whether this policy will apply to Chairman Arthur Levinson, who turns 75 next year.
Apple also disclosed the latest compensation details for Cook and other executives. While Cook’s target salary for 2023 was $49 million — about half of the $99 million he received in 2022 — his total ultimately came to $63.2 million. About $47 million came from stock awards, which was higher than expected as Apple exceeded its internal financial goals for net sales and operating profit. For 2024, Cook’s target equity compensation increases to $50 million.
Apple’s other named executives — its CFO, head of retail, general counsel and chief operating officer — all saw their compensation stay roughly the same in 2023, at around $27 million. dollars each.
In one filing, the company asked shareholders to vote in favor of board members and executive compensation. And he urged investors to reject a proposal requiring a report on the company’s use of artificial intelligence.
“The scope of the requested report is extremely broad and could encompass the disclosure of strategic plans and initiatives detrimental to our competitive position and would be premature in this developing area,” the company said. Apple plans to unveil a series of AI-based tools for the iPhone and other devices as early as June, Bloomberg News reported.
