Running Head: APPLE INC. COMPANY APPLE INC. COMPANY 2 Apple Inc. Company Lucy Rowell 7/28/19 Apple Inc Company Apple Inc, which was formerly known as Apple Computer, Inc, is a company based in America, and it is recognized as the first company that is successfully dealing with personal computers, phones etc. Apple’s headquarters are located in Cupertino in California. Based on research, most people think that the success of Apple is from some factors which include the management skills of their CEO, their high-end products as well as their cooperate culture of being innovative and enthusiastic. Besides, Apple is considered to be focused on its employees by offering them the best benefit and compensation programs. These services have played a significant role in enabling Apple Inc to have a competitive advantage against its competitors. Currently, Apple has personified innovation, prestige, as well as the quality of their brands. Apple brands are among the most valuable brands globally, and it has become the most exciting place people can work in. Also, from research, Apple Company has over 10, 000 workers who are focused on developing the best brands on earth and they are more than dedicated to making the world a better place than they found it. This paper aims to discuss the compensation strategy of Apple and the practices Apple is applying related to the challenges they face. The history of Apple According to research, Apple Inc was developed in the year 1976 on April by Steven Jobs together with his friend Steve Wozniak. The two friends were dropouts from high school, and they lived in Silicon Valley. The first Apple product to be created as a computer which was established in the year 1976 at Steven Jobs home. Ever since they created the first computer successfully, they revolutionized the use of computers, how people use the internet and listen to music as well as how they communicate using mobile phones. In the year 1997, it was recorded that Apple’s share price was at the range of $3.30 million, which later on improved in the year 2011, and the share price was $339.87 million. Apple Inc. Vision and Mission and Values From their website, their vision is developing the best computing products which will, as a result, improve the experiences of different users including students and educators and also generate innovative professionalism using their original hardware, internet offerings as well as software (Scholar et al., 2012). Their mission, on the other hand, according to Apple’s website, is to create Macs which should offer the best experiences to their users globally. They also have a mission of creating an OS X, iWork, iLife and other exceptional software. Based on research, apple offers the most revolutionized music using their iPods as well as their iTunes which are located on their online stores. In fact, Apple has redesigned its mobile phones using their revolution App Store and iPhone, which is ...

1. Running Head: APPLE INC. COMPANY
APPLE INC. COMPANY 2
Apple Inc. Company
Lucy Rowell
7/28/19
Apple Inc Company
Apple Inc, which was formerly known as Apple Computer, Inc,
is a company based in America, and it is recognized as the first
company that is successfully dealing with personal computers,
phones etc. Apple’s headquarters are located in Cupertino in
California. Based on research, most people think that the

2. success of Apple is from some factors which include the
management skills of their CEO, their high-end products as well
as their cooperate culture of being innovative and enthusiastic.
Besides, Apple is considered to be focused on its employees by
offering them the best benefit and compensation programs.
These services have played a significant role in enabling Apple
Inc to have a competitive advantage against its competitors.
Currently, Apple has personified innovation, prestige, as well as
the quality of their brands. Apple brands are among the most
valuable brands globally, and it has become the most exciting
place people can work in. Also, from research, Apple Company
has over 10, 000 workers who are focused on developing the
best brands on earth and they are more than dedicated to making
the world a better place than they found it. This paper aims to
discuss the compensation strategy of Apple and the practices
Apple is applying related to the challenges they face.
The history of Apple
According to research, Apple Inc was developed in the year
1976 on April by Steven Jobs together with his friend Steve
Wozniak. The two friends were dropouts from high school, and
they lived in Silicon Valley. The first Apple product to be
created as a computer which was established in the year 1976 at
Steven Jobs home. Ever since they created the first computer
successfully, they revolutionized the use of computers, how
people use the internet and listen to music as well as how they
communicate using mobile phones. In the year 1997, it was
recorded that Apple’s share price was at the range of $3.30
million, which later on improved in the year 2011, and the share
price was $339.87 million.
Apple Inc. Vision and Mission and Values
From their website, their vision is developing the best
computing products which will, as a result, improve the
experiences of different users including students and educators
and also generate innovative professionalism using their
original hardware, internet offerings as well as software
(Scholar et al., 2012). Their mission, on the other hand,

3. according to Apple’s website, is to create Macs which should
offer the best experiences to their users globally. They also
have a mission of creating an OS X, iWork, iLife and other
exceptional software. Based on research, apple offers the most
revolutionized music using their iPods as well as their iTunes
which are located on their online stores. In fact, Apple has
redesigned its mobile phones using their revolution App Store
and iPhone, which is believed to be creating a future of
computing gadgets, iPads as well as mobile media.
Apple’s Values, on the other hand, from their websites, states
that they believe with the current technology, they should
design products that are easy and not complicated to use. Also,
Apple needs to have and control leading technologies in the
products or brands they develop and get involved with markets
where they can make a difference. Apple believes in declining
a thousand offers to commendably focus on the things they find
crucial to the Company. They also believe in cooperation and
cross-pollination of their teams, which will play an essential
role in developing products that are unique compared to others.
Apple value does not involve them settling for less than
excellence; they have the courage to accept and change when
they are wrong.
Organizational Structure
The founder CEO of Apple was Steve Jobs who, unfortunately,
passed on in the year 2011 on October 5, which forced the
Company to look for a new CEO. Currently, Apple’s CEO is
Tim Cook (Scholar et al., 2012). Apple has eleven directors
under its CEO, who is believed to work closely under their
manager. One the roles of Apple’s CEO is to run all
managements which are under the Senior Vice Presidents of
COO, iOS software, Global Communication, Software
engineering, Design, Retail, Legal and Product Marketing. The
CEO is also obliged to make decisions based on the Company,
which should be followed by all the staff members of the
Company.
Apple’s business goals and strategy

4. Apple has created innovative goals and strategies, and
according to their report, the company is more than focused on
creating the best experience using their products and services to
their consumers. Their business strategy is to sway a unique
ability which will create and scheme their personal operating
systems, their software, hardware and any other service which is
meant for offering their consumers with technological
solutions(Scholar et al., 2012). The Company believes in a
relentless venture in creating researches, advertising and
marketing their products, which will play a significant role in
their growth and profits on creative technologies or products.
Ethical Practices in Apple
The success of Apple is highly based on generating creative and
high-end products as well as services and establishing veracity
in their business world. Daniel (2011) also mentions that Apple
has four leading principles which significantly contributes to
their integrity, and that includes honesty, respect, defiance as
well as privacy. The Company’s ethics, on the other hand, are
their elements of business integrity, and they include the
revelation of data and safeguarding intellectual assets.
Apple’s Compensation Program
Based on Apple’s Company perspectives, the company believes
that employees are rewarded based on the work they deliver and
as to that, the company needs to mainly focus on and make sure
that compensation on their employees is efficient. Depending on
the agreement between the employees and the company, the net
outcome will be determined by the employee’s standpoint as
well as resistance in the bond. Therefore, Apple can use that
strategy as a method of effectively obligating on its large pool
on both temporary and permanent employees. That can also be
outlined by the Company and employees creating a legal
document which will define the cost of compensation every
worker in the company should get. The objective of Apple’s
Company compensation strategy is to ensure that it retains and
attracts talents, entrepreneurship, as well as having an
innovative group of executives. That will also help the

5. Company have a competitive advantage against its competitors
and on the dynamic markets. The company also pursues to
achieve that objective by aligning with long term benefits of the
stakeholders of the company. Apple’s compensation strategy
for executive officers and stakeholders is believed to benefit the
company grow its financial performance, considering the
challenges in the macroeconomic ecosystem.
In the year 2009, the revenue of Apple increased to 36.5 billion
USD, which is an increase of 4.1 billion USD compared to the
year 2008. Net income, on the other hand, rose to 5.7 billion in
the year 2009, which was an increase compared to the previous
year, considering that it ranged on 870 billion. The number of
stakeholders in the year 2009 also improved to 857% and all of
that is believed to be as a result of using the compensation
strategies applied by the Company. The company believes that
the current Apple’s achievements have been directly linked to
their compensation strategy. The Compensation strategy
remains preferable by the compensation committee.
Compensation can be defined as forms of payment returns or
any other tangible benefits or services that are received by
employees. Compensation can be in the form of gifts, vouchers,
or even money itself (Milkovich, Newman, & Gerhart, 2014).
Apple’s compensation strategy involves three components,
which include long term equity awards, annual performance-
based on money bonuses as well as base salaries. A compelling
example of Apple’s Compensation strategy is Mr Steve Jobs,
who was a pioneer, and he would annually receive one million
USD. Apple insists mainly on long term awards, and yearly
performance and employees are awarded cash bonuses because
the leading share of every executive compensation in total is
directly related to Apple’s stock price (Apple Inc., 2015).
Apple practices Long Term Equity in the form of RSU since it
believes that it is among the most effective ways of retaining
employees as well as attracting new talents and having an
executive team. Also, to relate to the executive’s interests, the
RSU is the best strategy (Apple Inc., 2015). Also, Apple

6. Company believes that the RSU program limits retention
considering that incentives are generated for employee better
performance, which also aligns with the interests of their
executives. Basically, RSU improves or decreases Apple’s stock
price. Basically, the RSU awards are given in every two years,
and it is done without any shares vest.
How Apple’s Compensation Practice determines the positive
and negative impact of the company and its stakeholders
To define the effect of a compensation strategy, it is best to
analyse the organisation’s effectiveness. Apple’s compensation
strategy has proved positive results considering the attitude of
staff and also their behaviour and their effectiveness. Also,
Apple Company uses committee which aims to determine their
compensation plans annually. Apple Company has also
modified to government techniques as well as approvals to
examine the impact of its compensation strategy. The
compensation strategy has been proved to be appropriate and a
benefit policy to employees, especially the executive officers.
Also, the company has severely performed a yearly performance
and evaluation of employee performance and the chief executive
as well as the governing board. It has been repeatedly proved
that Apple’s compensation strategy is appropriate.
Challenges facing Apple
Based on research, some of the challenges facing Apple’s
corporation include managing the cost of labour which is
considered to be the most significant line in their budget.
Apple Company has created outlets and considering that the
economy is tight, they are set up to reduced funds. There is also
an increased compensation battle in IT companies, and that is
another contributing factor in the cost of labour.
How Laws, Labor Unions and Market factors affect Apple
Compensation Strategies
Labour unions have a significant impact on how workers are
compensated, and they operate mainly on making sure that
workers are paid fairly. A good example is Cory Molly, a part-

7. time worker in Apple Company, and he created a union for
workers for them to support fair salaries and compensation for
part-time employees. Cory makes 14 USD hourly, and he argues
that if there were an active labour union, then part-time
employees would get better compensation plans.
Market factors, on the other hand, impact compensation
strategies by Apple Corporation. For instance, when there is an
increasingly competitive data technology market, then the
Company will, as a result, improve their finances. Annually,
Apple evaluates its compensation strategy, which means that its
employees benefit and as a result, their productivity increases,
increasing the Company’s profits.
Traditional Bases effectiveness
The conventional pay model of Apple Inc gives consistency, and
it is considered to be fair. However, the approach can, as a
result, cause counter productiveness and also have poor
outcomes. For instance, the arrangement of the merit pay
practices to muddle the on-going staff training can cause the
company significant costs. Basically, the merit pay strategy
applies better in a consolidated control, especially on
compensating strategies. The plan offers the Company a
criteria-based approach on how they should analyse the
Company should compensate its employee more than the
required. Also, the policy assesses the general pay equity of the
Company, and that is because all the work in practice depends
on a single system. Therefore that enables the Firm to have an
overview and compare the total pay of employees in the
organization.

8. References
Apple Inc. (2013). Economic and fiscal impacts generated by
Apple in Cupertino - current facilities and Apple Campus 2,
(May). Retrieved from
https://www.apple.com/pr/pdf/apple_economic_impact_on_cupe
rtino.pdf
Apple Inc. (2012). Apple supplier code of conduct, 8. Retrieved
from
https://www.apple.com/supplierresponsibility/pdf/Apple_Suppli
er_Code_of_Conduct.pdfnhttp://www.apple.com/supplier-
responsibility/
Apple Inc. (2015). Form def 14A / proxy statement (definite).
SEC Filings.
Cook, D (2014). Apple bolsters expands employee benefits.
BenefitsPro. Retrieved
from:http://www.benefitspro.com/2014/10/06/apple-bolsters-
expands-employee-benefits
Daniels. (2011). Apple inc ’s ethical success and challenges.
The University of New Mexico.
February, P. R. (2009). Contents (February).
Martocchio, J. (2014). Employee benefits (5th ed). Introduction
to employee benefits (p.5). New York, NY: McGraw-Hill Irwin.
Milkovich, G., & Newman, J., & Gerhart, B. (2014).
Compensation (11th ed). The pay model (p.13). New York, NY:

9. McGraw-Hill Irwin.