Apple, Inc. Corporate Governance Paper</o:p> </o:p> Overview </o:p> </o:p> Your assignment is to research the corporate governance of Apple Inc. There are many aspects of...

1 answer below »

Apple, Inc. Corporate Governance Paper

Overview

Your assignment is to research the corporate governance of Apple Inc. There are many aspects of corporate governance, but you should do the analysis from the perspective of a potential investor. All information for the project can be obtained from your Apple’s proxy statement. In addition to illustrating corporate governance practiced by corporations, this assignment will familiarize you with proxy statements, the SEC website, and EDGAR.

Details

1. Obtain Apple Inc.’s most recent proxy statement (officially called a ‘DEF 14A’). Go to www.sec.gov. Click on “More Search Options” in the top right corner. Enter Apple Inc. (it is often easier to enter the ticker symbol rather than the company name) and click “find companies.” Find the most recent DEF 14A form (NOT ‘DEFA 14A’) and click on “documents”. Click on the link under “Document” which has a description of “DEFINITIVE PROXY STATEMENT” or contains “DEF 14A”.

2. Address each of the 8 governance items listed below. State how Apple deals with each issue and if this is a positive or negative based on your own research and lectures. Description of the Apple’s governance should be in your own words. Copying and pasting from the proxy statement is not acceptable.

A. Board elections – Does the board have annual or staggered elections? Are board members individually up for election?

Lets define first staggered, this are made annually and by different kind of directors and lenths of powe

B. Board compensation – Are board members paid partially in stock and/or stock options? How does board member total compensation compare to average board compensation?

C. Board perks – What non-salary benefits do board members receive?

D. Board size – How many board members are there?

E. Board independence – Are a majority of the board members independent? Is there evidence that the board ever meets without the CEO present?

F. Board over commitment – How many times does the entire board meet per year? Did all board members attend at least 90% of the board meetings? How many board members have more than 3 outside positions? How many have more than 5 outside positions?

G. Succession planning – Does Apple have a succession plan to replace the CEO if necessary? What details are provided about the succession plan?

H. Executive pay – Are executives paid with a mix of cash, bonus, stock, and stock options? Does the structure appear to provide incentives for executives focus on long-term firm performance? Is there evidence the executives were given bonuses without meeting performance benchmarks?

3. Your write-up should include Apple’s name and brief description of the company’s business (2-3 sentences are fine) and 8 sections corresponding to each of the governance items listed in point #2 above. Give each section a heading.

Answered Same DaySep 19, 2020FIN510Charles Darwin University

Solution

Sarabjeet answered on Sep 20 2020
54 Votes
Corporate governance
    
Corporate governance
Student Name
University Name
Unit Name
Unit Code
Contents
Introduction    3
Board elections:    3
Board compensation:    3
Board perks:    4
Board size:    4
Board independence:    4
Board over commitment:    4
Succession planning:    5
Executive pay:    5
References    6
Introduction
Corporate governance is the process and rules system that controls and directs a company. Corporate governance includes management efforts to equalise interests of several stakeholders, for example, suppliers, financiers, communities, governments and employees. Apple Inc. is electronics giant whose corporate governance has recently been heavily criticized.
Apple Inc. is multinational electronics corporation headquartered in the Cupertino, California. It the largest electronics corporation with total assets and revenue.
Board elections: Apple implemented a majority vote in the undisputed directorial election. Therefore, Apple's Bylaws stipulate that in uncontested selection of directors, (i) majority of shares represented or present and voted at annual meeting, in addition, (ii) the majority of shares needed to constitute the quorum are in favour to elect a director.
Board compensation:  Compensation plans are premeditated to reward the performance in effective and simple way. It depicts the scope, unparalleled scale as well as success of the Apple business along with the significance of our executives as high-performance team operations, while concentrating on key metrics of profitability as well as creation of stockholder value. Our share price rose by 36.7% year-on-year. Apple believes that the compensation paid to...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here