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Askwonder 1

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Running head: APPLE, INC. 1
Apple, Inc.
Student’s Name
Institution’s Name

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APPLE, INC. 2
Apple, Inc.
Brief Description
Apple, Inc. is a telecommunication company that deals with design, marketing and
manufacture of media devices, portable digital music layers and personal computers. Some of
the recognized products from Apple include Apple TV brands, iPhone, Apple Watch, iPad
and Mac. All these products use professional software applications generated by Apple,
including watchOS, iOS, X and OS. Apple is also known for its corporate Big Data platforms
such as iCloud and Pay brands, and operates mostly in America, Japan, Europe and Greater
China. The company was founded in 1976 by Steven Paul jobs, Stephen G. Wozniak and
Ronald Gerald Wayne, and its headquarters are located at Cupertino, CA (Apple, Inc., 2016).
Agency Problem
The agency problem at Apple was the fact that executives were not, in any way, tied
to the investment of the company and as a result there was a loophole in the company’s
corporate-governance policies which allowed the employees not to work towards the goals
and standards of their employers, stakeholders. This would mean a lower profit and growth
margin as compared to the company’s tech-savvy potential. To correct this error, Apple has
come up with a new rule that requires all executives to hold at least triple their base salary on
the company’s stock (Reuters, 2016).
With this requirement, Apple has provided a 5-year timeline to new executives. In
addition, the policy also requires the chief executive to hold at least 10 times the annual base
salary he is paid whereas non-employee directors should possess at least five times their
annual retainers. Most independent contributors in business-oriented sites such as Forbes and
TechCrunch have reason to believe that aligning incentives which require the management to
be substantial shareholders, and as a result principals, is a decent plan in ensuring they make

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Running head: APPLE, INC. 1 Apple, Inc. Student’s Name Institution’s Name APPLE, INC. 2 Apple, Inc. Brief Description Apple, Inc. is a telecommunication company that deals with design, marketing and manufacture of media devices, portable digital music layers and personal computers. Some of the recognized products from Apple include Apple TV brands, iPhone, Apple Watch, iPad and Mac. All these products use professional software applications generated by Apple, including watchOS, iOS, X and OS. Apple is also known for its corporate Big Data platforms such as iCloud and Pay brands, and operates mostly in America, Japan, Europe and Greater China. The company was founded in 1976 by Steven Paul jobs, Stephen G. Wozniak and Ronald Gerald Wayne, and its headquarters are located at Cupertino, CA (Apple, Inc., 2016). Agency Problem The agency problem at Apple was the fact that executives were not, in any way, tied to the investment of the company and as a result there was a loophole in the company’s corporate-governance policies which allowed the employees not to work towards the goals and standards of their employers, stakeholders. This would mean a lower profit and growth margin as compared to the company’s tech-savvy potential. To correct this error, Apple has come up with a new rule that requires all executives to hold at least triple their base salary on the company’s stock (Reuters, 2016). With this requirement, Apple has provided a 5-year timeline to new executiv ...
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