Case Analysis : APPLE : Corporate Governance and Stock BuyBack

https://investor.apple.com/leadership-and-governance/default.aspx

https://investor.apple.com/faq/default.aspx

Governance Background

1. Fundamental structure of a modern company;

2. Governance mechanisms, including effective monitoring, incentive alignment and resource provisions

3. The monitoring role played by large shareholders and board of directors

4. Incentive alignment by executive equity ownership and compensation

5. Role of shareholder activism in corporate governance

6. Conflicting interests in governance entities.

Q.1. Analyse Apple’s board structure and composition. What are the pros and cons of the current
board? Provide suggestions for how to resolve potential problems.

Q.2. Analyse Apple’s ownership structure (eg. Blockholders, institutional shareholders, inside ownership
etc). Provide suggestions for how to resolve potential problems.

Q.3. Analyse Apple’s executive and director compensation structure (eg salary, bonus, stock based
compensation etc). Provide suggestions for how to resolve potential problems.

Q. 4. If you are one of Apple’s shareholders, will you vote for or against the stock buyback proposal?
Explain why?