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Apple exec bonuses will be 'modified' based on how they perform against ESG values

Executives will see their bonuses either cut or raised by up to 10 per cent depending on how they perform according to the tech titan's core values

Apple will modify its executives' bonuses this year based on how they act within the company's environmental, social and governance (ESG) values.

The tech titan revealed in its annual proxy filing that it would use its "environmental, social and governance modifier" to affect executives' bonuses - up or down - by up to 10 per cent depending on their performance within the company's ESG parameters.

"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 programme," it stated in the filing.

"This change will further motivate Apple's executive team to meet exceptionally high standards of values-driven leadership in addition to delivering strong financial results."

Apple's core values are accessibility, education, environment, diversity and inclusion, privacy and supplier responsibility.

Apple did not outline how it would measure executive performance against these values.

Apple revealed in the same filing that CEO Tim Cook - whose pay package jumped 28 per cent to $14.7m in 2020 - was being handed a long-term equity award which will "better align the structure of his time-based and performance-based equity incentives with the awards of our other named executive officers".

Apple had a rip-roaring 2020: it became the first company to hit a $2tn market valuation by Wall Street, saw its share price soar after a stock split and recorded its best ever Q4.