Shareholders of Apple Reject Proposal for Transparency Report on AI
Shareholders of Apple Inc. have declined a request from labor groups for a report on artificial intelligence transparency, which would have investigated the ethical use of the technology by the company.
A proposal by the AFL-CIO Equity Index Funds was rejected in a preliminary vote at Apple’s annual meeting on Wednesday. Shareholders also rejected measures on equal employment policies, civil liberties, racial and gender pay gaps, and human rights. They approved the board’s agenda and the company’s management compensation plan.
The AI proposal called on Apple to disclose the ethical guidelines it follows when adopting the technology. Artificial intelligence raises “a number of social policy issues,” according to a statement supporting the measure. This includes whether it could lead to biased decisions against employees or violate customer privacy. The statement also warned about the threat of redundancies due to automation.
The AFL-CIO’s investment arm is also pushing other tech and media companies, including Walt Disney Co., Netflix Inc. and Warner Bros. Discovery Inc.
The proposal was read by Apple retail employee Michael Forsythe, who said his colleagues were concerned about the company’s expansion into artificial intelligence. Forsythe helped start unionization at an Apple store in Oklahoma City.
Apple has been less open than its tech peers about its plans for generative artificial intelligence — behind chatbots like ChatGPT — but has promised to discuss its plans later this year. That presentation could come as soon as June, when the company holds its annual developer conference.
Behind the scenes, Apple has been racing to weave generative AI into its software. Craig Federighi, vice president of software engineering, has told his teams to develop as many new AI features as possible for this year’s operating system updates.
CEO Tim Cook’s salary has been a flashpoint in recent years, with his annual compensation approaching $100 million. But in 2023, it fell 36 percent to $63.2 million — largely due to smaller stock awards. His salary is still $3 million. Cook’s target stock award for 2024 is $50 million of the $40 million target.
Apple announced last month that two longtime executives were not running for office at the meeting because they reached the age limit of 75: Al Gore, a former U.S. vice president, and James Bell, a former Boeing Co. executive. Still, fellow director Ronald Sugar isn’t leaving, even though he turns 76 later this year. Cook opened the meeting by thanking Gore and Bell.
Apple said Sugar will remain “considered due to recent significant changes in board composition and the value of retaining executives who have gained deep insights into the company during their tenure.”
Former Aerospace Corp. CEO Wanda Austin joins the board. He has long been a supporter of U.S. space exploration — an area that has so far not been Apple’s main focus.
