Eric Jackson, examining a question I raised on The Talk Show a few weeks ago:
Normally, all companies have to report the pay for the CEO, CFO,
and three next most important “Named Officers.” Most would assume
Ive would be among the next 3. Yet, Apple reports them as
Ahrendts, Cue, and Williams. Why? I agree with Gruber that it’s
likely because they just don’t want to report Ive if it’s high for
fear of it becoming an issue when they don’t think a public
discussion is warranted.
Update: Here are the relevant SEC rules (emphasis mine):
In the annual proxy statement, a company must disclose information
concerning the amount and type of compensation paid to its chief
executive officer, chief financial officer and the three other
most highly compensated executive officers. A company also must
disclose the criteria used in reaching executive compensation
decisions and the relationship between the company’s executive
compensation practices and corporate performance.
So it’s not the three “most important”, but the three “most highly compensated”. Ahrendts’s large signing bonus last year guaranteed her placement on this list.
Now my question is, is Jony Ive an “officer of the company”? What is the legal difference between “senior executive” and “executive officer”? DF reader @GadgetGav speculates that Ive is not an “executive officer”, and thus not subject to SEC compensation disclosure rules.
★ Wednesday, 4 March 2015