The change taking effect this year is intended to motivate
Apple executives "to meet exceptionally high standards of values-driven
leadership in addition to delivering strong financial results," the
Silicon Valley technology titan said in proxy documents filed with the
Securities and Exchange Commission.
Financial targets and thresholds for executive bonuses at
Apple will not change, the iPhone maker said.
"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 program," Apple said
in the filing.
Living up to Apple's stated values regarding sustainable
energy, workplace diversity, and other environmental and social issues will be
among factors considered when deciding whether bonuses should be increased or decreased
by as much as 10 percent, according to the company.
"We've led the industry in reducing our environmental
footprint for years and are committed to one day sourcing 100 percent recycled
and renewable materials across all of our products and packaging," Apple
said in a section of the filing outlining its values.
"We believe diversity drives innovation and is key to
our success."
Apple is to report its earnings for the final three months
of last year on January 27, and has a virtual annual shareholders meeting
slated for February 23.