Annual Report - Apple Inc

Reporting on:

APPLE, Inc.

Fiscal Year 2011 Presented by: Bo Weichel

Professor: Ekaterina Kouprianova Course: ACC 206 Accounting II Date: 11/20/11

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CORPORATE GOVERNANCE

Apple, Inc. is a highly successful global company offering leading technology in personal computers, phones, music players, and tablet computers. Its success doesn’t come entirely from producing consistently innovative and quality products. It reaches down into the depths of the company itself, its organizational governance and control. This foundation is what keeps Apple on the leading edge of the market. Apple has a Board of Directors which contains seven members, including CEO Tim Cook. The role of the Board is to “oversee the Chief Executive Officer and other senior management in the competent and ethical operation of the Corporation on a day-to-day basis and assures that the long term interests of the shareholders are being served” (Apple 2010, p.1). Serving on the Board sets limitations on its directors; they are advised not to serve on more than four boards of other companies (Apple 2010, p.1). Directors serve for a one year term, without limitations on the number of terms served; however they may not continue re-election after age 75. Again highlighting the Corporations excellent internal governance, it states “The Board believes the Corporation benefits from the contributions of directors who have developed, over time, increasing insight into the Corporation” (Apple 2010, p.2). This shows the value that Apple places on the experience and personalization of its directors. The annual meeting of shareholders requires the attendance of all directors. The Board of Directors meets a minimum of four times per year. It operates with three committees which are Nominating and Corporate Governance Committee, Audit and Finance Committee, and Compensation Committee (Apple, p.4). Annually the Board evaluates itself, its committees, and each director to ensure efficient functionality.

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