Apple is actually the smart money’s second favorite publicly traded company (see why it’s important to pay attention to hedge fund activity).
According to an article in The Wall Street Journal, the Cupertino-based company has placed a new requirement on company executives.
In short, here is what the article has to say:
“Apple Inc. in February reversed its stance on a corporate-governance measure related to executive compensation, implementing a new rule that executive officers must hold triple their base salary in company stock.”
This is a bit of a surprise, being that Apple’s board of directors previously “urged shareholders to oppose a very similar corporate-governance measure proposed by a shareholder.”
With all this in mind, you may be wondering when this came into effect. Here is what the Wall Street Journal piece added:
“Apple’s new executive-stock-holding requirement was implemented Feb. 6, according to a notice of the policy under a “governance” tab on its website.”
AppleInsider has an interesting take on this topic, adding the following:
“Apple’s implementation of the executive stock holding policy comes amidst growing pressure from shareholders concerned over the company’s declining stock price, which has slipped over 36 percent since hitting a high of just over $700 in September 2012. AAPL closed at 441.40 on Thursday after shedding $3.17, or 0.71 percent, from its price at the opening bell.”
It will be interesting to see if there is any backlash from Apple Inc. executives who don’t feel this policy is fair. As of now, there has been no such news but you never know what the future will bring.
What are your thoughts on this new requirement? Share your opinion below in the comment section.
Check back here for more updates on Apple Stock Price.
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