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(Bloomberg) -- Apple Inc. investors rejected an outside shareholder proposal to end the iPhone maker’s diversity, equity and inclusion efforts, though Chief Executive Officer Tim Cook said that the company may make some adjustments to the program.
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The company conducted the vote as part of its annual meeting, held virtually on Thursday, with Cook and General Counsel Kate Adams leading the proceedings. In line with Apple’s recommendations, investors also spurned requests for reports on artificial intelligence risks and decisions related to child sex abuse material, or CSAM. They also rejected a measure about charitable giving practices.
Shareholders reelected Apple’s board of directors, ratified its outside accounting firm and approved the company’s executive compensation. Last year, Cook received an 18% pay bump to $74.6 million, including a $3 million base salary, $58.1 million in stock, and roughly $13.5 million in additional compensation.
As they have most years, shareholders voted in line with Apple’s recommendations. The last time investors veered away from the company’s advice was in 2022, when shareholders voted for proposals related to concealment clauses in employment agreements and civil rights audits.
The proposal to abolish DEI efforts came after many companies, including Meta Platforms Inc. and Alphabet Inc.’s Google, have started winding down such programs.
The measure, backed by the National Center for Public Policy Research, said that Apple maintaining its DEI push wasn’t prudent. The group describes itself as a independent conservative think tank.
“It’s clear that DEI poses litigation, reputational and financial risks to companies, and therefore financial risks to their shareholders, and therefore further risks to companies for not abiding by their fiduciary duties,” the proposal said.
Apple responded by saying the proposal aims to interfere with its business practices and that it “does not discriminate in recruiting, hiring, training or promoting on any basis protected by law.”
During the meeting, Cook said that Apple never had quotas or targets. But he did suggest that the company may make some adjustments to its policies.
“Our unique culture enables us to create the best products and services in the world,” he said. “As the legal landscape around these issues evolves, we may need to make some changes to comply. We’ll continue to work together to create a culture of belonging and we’ll remain committed to the values that have always made us who we are.”