Last Updated: February 08, 2024, 09:41 IST
Cupertino, California, USA
Tim Cook at Apple BKC in Mumbai, India.
A federal decide dismissed a lawsuit alleging Apple overpaid CEO Tim Cook and high executives by miscalculating the worth of efficiency-based mostly inventory awards.
A federal decide on Wednesday dismissed a lawsuit accusing Apple of overpaying Chief Executive Tim Cook and different high executives by tens of hundreds of thousands of {dollars} by miscalculating the worth of efficiency-based mostly inventory awards.
U.S. District Judge Jennifer Rochon in Manhattan mentioned the iPhone maker described its pay strategies in detailed compensation tables in its 2023 proxy assertion, “precisely” as securities legal guidelines and U.S. Securities and Exchange Commission guidelines require.
Rochon additionally discovered no proof that Apple’s board of administrators acted improperly in awarding pay, and mentioned the plaintiff, a pension fund affiliated with the International Brotherhood of Teamsters, didn’t give the board sufficient time to think about its objections earlier than suing.
Lawyers for the pension fund didn’t instantly reply to requests for remark.
The plaintiff mentioned Apple in 2021 and 2022 awarded a respective $92.7 million and $94 million of efficiency-based mostly restricted inventory models to Cook and 4 different executives, although its compensation committee supposed to award simply $77.5 million every year.
It attributed the alleged error to the committee’s improper calculation of the RSUs’ honest values on the time of the grants, and mentioned it misled shareholders who can be casting advisory votes on govt compensation, referred to as “say-on-pay.”
Cook’s compensation totaled about $99 million in each 2021 and 2022, together with greater than $82 million of inventory awards every year, Apple proxy filings present.
His complete pay declined to $63.2 million for 2023. The 4 different Apple executives had been every awarded greater than $26 million in every of the three years.
The case is International Brotherhood of Teamsters, Garage Employees Local 272 Labor Management Pension Fund v Apple Inc et al, U.S. District Court, Southern District of New York, No. 23-01867.
