Diversity has been a major issue for Silicon Valley companies, and most go out of their way to tout their progress and initiatives. Apple is currently doing opposite, pushing back against shareholders who are calling for the company to accelerate its efforts.
A small group of shareholders led by investor Tony Maldonado have submitted a proposal to Apple asking the company to “adopt an accelerated recruitment policy…to increase the diversity of senior management and its board of directors.”
If the proposal is approved, it would require Apple to make diversity a priority when hiring at the top levels of the company. The timeline and initiatives put in place would be up to Apple, the proposal would just get the ball moving a bit faster.
Maldonado has suggested tying executive pay to diversity goals—a move that Intel and Microsoft have made—or adopting a policy that would require the company to regularly search for potential new board members from diverse backgrounds.
According to the company’s 2016 report, 87 of its 107 executive or senior official positions are held by men, and 88 of those seats are occupied by a white person.
It is the second year that Maldonado has submitted his suggestion to increase diversity, though he has additional support in his effort this year thanks to backing from Zevin Asset Management, an investment firm that emphasizes what it calls “socially responsible investing.”
Despite the support, Maldonado’s suggestion is unlikely to pass, thanks in large part to opposition from Apple. The company has advised shareholders to vote against the proposal, according to a filing from the United States Securities and Exchange Commission (SEC).
Apple told shareholders in the letter that it is already exploring diversity efforts across its workforce and has made progress in attracting “more women and underrepresented minorities.” According to Apple, Maldonado’s proposal is “not necessary or appropriate because we have already demonstrated our commitment to a holistic view of inclusion and diversity.”
Apple has made strides in its diversity efforts. The company has reportedly removed pay disparities among its employees and has made some progress in its diversity hires. However, much of the changes have happened at the retail and non-tech parts of the company.
Maldonado may not get the policy passed this year, but he doesn’t need the full support of shareholders to continue pushing his initiative. Last year the proposal got just over five percent support among shareholders, which was above the three percent threshold required to allow him to submit the idea again this year. He’ll need six percent support to be able to submit again in 2018.
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