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SEC backs shareholder’s call for vote on accelerating diversity among Apple’s directors & senior execs

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Update: Apple has decided to include the resolution, but recommends voting against it, arguing that its existing diversity policies cover appointments at all levels within the company.

The Securities and Exchange Commission has said that a resolution submitted by an Apple investor to accelerate diversity on the company’s board and among senior execs should be included in proxy materials sent to shareholders. Bloomberg reports that proposal was prompted by a conversation the shareholder had with his teenage son.

The proposal for an “accelerated recruitment policy” was submitted in September by Antonio Avian Maldonado II, who owns 645 Apple shares. He said he was spurred to act after looking at photos of the directors with his teenage son, who asked him why nearly everyone was white.

Apple rejected the proposal, stating that it was an attempt to micromanage recruitment. Apple told the SEC that it was actively trying to attract minorities but “has no power to ensure that its recruits will accept offers.” The SEC, however, does not accept Apple’s position …

The SEC’s Division of Corporation Finance said in a Dec. 11 letter that the agency didn’t agree with the company.

While the Commission has no powers to force Apple to have shareholders vote on the resolution, it could potentially bring an enforcement action against the company afterwards if it fails to do so. Bloomberg says that Apple didn’t respond to emails and phone calls, and that the SEC declined to comment on the possibility of sanctions.

Apple publishes an annual diversity report, which this year showed small improvements across the company’s total workforce, with Tim Cook acknowledging that “there is a lot more work to be done.” However, Bloomberg notes that among senior roles – those classified by Apple as Leadership positions (click the tab) – white employees this year increased from 55% to 63%, while there were falls in the percentages of those classifying themselves as Hispanic, black or multi-racial. Among racial minorities, only those listed as Asian saw an increase. Six of Apple’s eight board directors are white.

Cook has repeatedly spoken about the company’s commitment to diversity in its hiring, stating last month that “the best companies in the world will be the most diverse.” Apple also supports the Code2040 fellowship program geared toward increasing diversity in the tech industry.

Photo: SeedInvest

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Comments

  1. Howie Isaacks - 8 years ago

    This is stupid. Apple should be forced to be “diverse” just for the sake of being diverse. I would tell the SEC to kiss my ass and then dare them to try and prove that there’s discrimination. I am so sick of this politically correct “diversity” BS. Why can’t we all just be people instead of a “minority”, or white, or something else? Why is there all of this obsession about putting everyone into a category and then making them victims?

    • Howie Isaacks - 8 years ago

      I meant to say that Apple should NOT be forced to be “diverse”…

    • PMZanetti - 8 years ago

      Why? Don’t you know? It’s #trending

    • dcj001 - 8 years ago

      I disagree with any conscious effort to hire those who are among minority gender, racial background, religion, sexual preference, etc. if it means that applicants who are more-qualified will not be hired for the same positions.

      And I own significantly more AAPL shares than Antonio Avian Maldonado II, to whom this article referred.

    • Richard Krvaric - 8 years ago

      Exactly…
      None of the governments business…

  2. iSRS - 8 years ago

    Rushing hiring anyone to check a list, while attempting to “diversify” is in and of itself, discriminatory, and goes against the whole point of the spirit of these programs.

    As a shareholder in any company, I want hires to be the best qualified person, regardless of gender, race, religion, sexual orientation, age, what have you. The BEST. PERSON. PERIOD.

    • Howie Isaacks - 8 years ago

      Wanting the most qualified people is racist. Don’t you know that? I think that Apple needs more short, French speaking, handicapped, communist, gay black transgender women on their board.

      • viciosodiego - 8 years ago

        yes, because apple needs people who don’t know what they are doing.
        /s

  3. Dave Huntley - 8 years ago

    So Mr Maldonado looks in the mirror and sees what? He has Spanish blood in him so he’s not white? He sure is….
    Not sure how Latinos get to be a distinct minority interest group. Spaniards are Europeans too. Hiring best qualified is the best way forward, colour quotas are basically racist.

    Oh and before anyone says Latinos have Native American blood, only a tiny proportion do, the majority are European or African extraction. Argentineans can claim to be Latino, they are whiter than most North Americans for example.

    Bizarre.

    • Well, let us be real about diversity and do it based upon population ratio. Unfortunately, that will leave the extremely qualified Asian ( Indian/East) out of the loop.That will leave it teetering near 80% of European descendants, 12 % AA then the rest will have to fill in the gaps. But, screw if they are actually qualified to run a damn business. Apple has a Homosexual Head of Company, many of their top supervisors are Asian( men/women). Apple does not care about your background per say, they are totally results driven.

      • Dave Huntley - 8 years ago

        Well why would Asian be left out of the ratio even if it is zero?

        I am bit tired of hearing about white privilege and white this and white that, when Asians, still a minority except some regions of pacific NW have higher income levels in North America and higher education qualifications than whites, blacks etc.

        So when it comes to who has it at the top, it’s Asians, and asian led companies are not known for diversity btw, and if theres any affirmative action Asians can still benefit even though they are now the most privileged community in North America.

        This is how bizarre it is.

      • JBDragon - 8 years ago

        In California, Whites are now a Minority!!! That’s Apple’s headquarters. This whole diversity thing is LAME. I’m tired of standards lowered just to get some group to pass. Do you want firefighter stander’s lowered so that more Woman can qualify? God help you if you DIE because she couldn’t drag you out of the fire, or needed help from someone else and some other person died because they didn’t get any help because they need 2 people to drag a person out.

        Lowering written test standers. You hear things like the test is rigged to White people? Are you kidding? You know and study the content, you would know the answer no matter the color and yet it happens. I want the Best person for the job!!! I don’t want a idiot that can’t do the job let alone a good job just to fill some quota. I don’t care what color or sex or anything else you are as long as you are actually qualified by the SAME rules as everyone else.

        Why are there things that Black Colleges? If it was a White College, that would be raciest. But because it’s black, it’s NOT? That makes no sense at all. Is this garbage that just keeps making race a issue which is shouldn’t be a issue at all. Here at work, I’m the Minority. I have a Chinese Owner I work for, along with his Kids. There’s also a lot of Filipino’s, and some Indian (From India!!). I don’t know what they’re saying half the time, but still friends with them. They’re all hard workers.

    • Spaniards are not latinos. And visa versa. People from South and Central America have aboriginal and other blood lines in addition to Spanish and Portuguese. A great many are as far removed from “white” as any other minority and certainly can in no way be compared to Iberian ancestors.

      That was an aside, but to get on topic, the SEC has its head up its ass, as usual. A board of directors isn’t a multi-cultural show piece for a company, but this is the kind of BS you have to deal with when you get as big and as popular as Apple.

    • Oh, didn’t catch the last sentence previously. “Tiny proportion” is a fallacy – an outright lie based on years (decades) or strife within a given country, such as persecution of peoples with Mayan blood in El Salvador, leading everyone to claim they’re “Spanish.”

      • Dave Huntley - 8 years ago

        I see no research anywhere on the percentages you claim, but you say what I say is a lie…. Very convenient.

        Spanish blood is the majority in many people in North and South America, and just like whites from Northern Europe who are still called white despite mix of blood with local indians and more, why should spanish descendants be any different? Spaniards are white. Ditto the italians that make up Argentina’s majority population and where there was precious little mixing of any indigenous blood. Italians are white, even though they have been on American soil for a few hundred years, just as whites in the North have.

        A better example for you than El Salvador is probably Bolivia, but it’s a small percentage compared to the population of Argentina, ditto Brasil where two distinct lines predominate, there’s black extraction from Africa and theres white Portuguese, the white majority portuguese are very inisitent about their own cultural purity, which makes me say, they are white.

        I don’t see how Latinos can just label themselves as a distinct group, even you have to admit many in the americas have zero or very little indigenous blood. So why do they qualify as a new ethnic group then?

        The indigenous heritage you claim though is also problematic to support. In regions of Mexico various claim to be descendants of Maya and others, but one group claiming descendancy tell you another group is lying… So i doubt it ever be that straighforward to sort out.

        Just sayimg it’s a lie is crap. You need independant research. Not a Chavez speech.

  4. mytawalbeh - 8 years ago

    Diversity BS is not applicable for Apple Executives, it is not a game or discrimination it’s all about TALENT and ability to lead a huge huge Process inside this company. It’s not about being white or black, male or female or anything else, “diversity” can be discussed for normal jobs not a sensitive ones.

  5. Hanley Leung - 8 years ago

    apple dreadfully needs a top CHINA executive on their board. I sent tim cook an email about this but he didn’t reply 😁😁😁

    • Dave Huntley - 8 years ago

      Name me one large Chinese enterprise that has put an American in a high position?

      why should th rest of the world treat Chinese any different than China treats them?

  6. 89p13 - 8 years ago

    As a stockholder, I want the most qualified, management with clearest vision steering Apple and my investments. Race / Color / Creed matter not: It’s all about the vision, experience and devotion to running the company in the “right direction” that matters to me!

    645 Shares – Sell them and invest in a company that meets your needs for “diversity” – leave Apple alone!

  7. PMZanetti - 8 years ago

    The new #America. Diversity for diversity’s sake. Brilliant.

  8. just-a-random-dude - 8 years ago

    Brilliant, the daddy shareholder is trying to track a lesson to his son by being a racist. He seem to forget, it is the action of excluding and intentionally performing with race in mind that makes it racist, not by not having a diverse class. As long as Apple picks the best person regardless of their external variables such as sex, race, sexual preference, etc, it is fine.

  9. tincan2012 - 8 years ago

    Let me see if I have this right… AAPL is one of the most manipulated stocks, with fund managers and analysts using practices that clearly appear to be illegal but there is never any consequence or action by the SEC- yet now the SEC is spending time on a diversity proposal for Apple? They should get more diversity at the SEC and hire some people with a [any?] sense of priorities.

    • jmholmes83 - 8 years ago

      It’s 2015 for a few more hours, so frankly I’m not surprised. This year was f**ked in terms of exactly this sort of thing.

  10. Danielle Stephens - 8 years ago

    Agreed. There is not one sound argument for placing anyone not qualified (by means of knowledge and experience in the given industry) anywhere in a leadership role that REQUIRES the aforementioned qualifications, for the sake of diversity or otherwise. If there’s anywhere we require diversity it’s in American government! All snarkiness aside, surely Apple is moving in the right direction with this: http://www.apple.com/diversity/, right? It’s true that progress done properly takes time and consistent “tending to” to ensure that the correct and positive steps are followed towards the established goals.
    Education and learning need to be prioritized for ALL children/young persons. Racial diversity as a stated goal is offensive on many levels; equal opportunity offered to a diverse population does not guarantee an even distribution of anything to anyone. There are several essential business “skills” which are vital to a corporation becoming…and remaining…successful, that cannot be taught.

    The bottom line here is that Apple IS taking steps towards building (see also: a work in progress) a workforce as diverse as the individuals who use their products! It’s enough to have to step in and take over leadership of a company whose previous CEO was one of the world’s most iconic leaders and is also a company which happens to hold the world’s largest market cap, but then to have the equivalent of the peanut gallery telling you how to run it…I’m surprised Tim Cook hasn’t handed the SEC detailed instructions on how they can all go shag themselves…*my apologies for the rant/off-color comments. I need coffee and a doughnut before I can even consider being civil after reading that bit.

  11. The PC thought police are gonna doom us all. So sick of these collectivist morons.

  12. Jake Becker - 8 years ago

    Sometimes I want Atlas to shrug.

    • flaviosuave - 8 years ago

      “There are two novels that can change a bookish fourteen-year old’s life: The Lord of the Rings and Atlas Shrugged. One is a childish fantasy that often engenders a lifelong obsession with its unbelievable heroes, leading to an emotionally stunted, socially crippled adulthood, unable to deal with the real world. The other, of course, involves orcs.”

  13. jmholmes83 - 8 years ago

    As an investor with just shy of 700 shares, may I put to vote a resolution asking Señor Maldanado to p*ss off and let the folks who know what they’re doing handle talent acquisition?

  14. Thomas Marble Peak - 8 years ago

    Forced diversity is wrong, just wrong. Hire or promote the best candidates for the job. If the best candidate is a pink, Maritian — then hire them — don’t hand the job to a less qualified candidate just to fulfill forced diversity.

  15. Eugene Toro - 8 years ago

    Had a black engineer as a colleague. People had to be careful as he took criticism for his bad work as a racist attack. His knowledge lacked and his attitude was bad. He came from a good University though, probably got in through AAP.

  16. Tutto Bene - 8 years ago

    There is no gov. dept. or a non-governmental authority that assigns race; Only the person (or the parent) can assign a person’s racial identity. A person who looks White, Brown, Yellow, Red, or Black can self-identify as anyone of the races. A person whose parents declared the child to belong to a certain race can change racial identity at any time, even at an advanced age.

    Racial identity is a remnant of the slave trade and plantation culture where the slave master assigned race to Africans in order to indenture new arrivals from Africa to the plantation as well as to deny them Constitutional rights, and later those of mixed race too. The dominant White race discriminated so severely that it even it even declared that individuals with as low as 1% African genes are Negros, thus subject to less general rights than Whites.

    Now things have improved, but people who look Black, for example, continue to be discriminated against and have a harder time moving up the ladder no matter how effectively they try to “pull themselves up by the bootstraps,” as that very bad Rightwinger Reagan used to say, which is bad logic because it denies the fact that a person can’t rise up by him/herself; Citizens, especially disadvantaged ones, generally need help in the ascent. Those who need more help need mentoring either from a church, an endowment, a law, a social program, a rich parent, a good school, helpful friends, etc.

    That inequality to equal opportunity based on race still exists today and, if one belongs to a discriminated race and feels that racism, it’s painful so one seeks justice in the workforce and in general society, which gives rise to Black Lives Matter, a self-help group simply seeking to expose to redress that inequality.

    However, merely being a member of a discriminated minority does not make that person better qualified than a person who has demonstrated one’s qualifications, so hiring a minority simply to satisfy a gov. regulation or one’s morality to hire more minorities, or a company or a socially conscientious CEO who wants to equalize opportunities for minorities, is likely degrading the company’s ability to innovate and is doing its stockholders and it’s bottom line a disservice. So this is the background to continual racial disparity in the workforce and in society.

    I feel that the corporation, which the USSC determined to be a person, not only has the ethical responsibility to itself, also has the moral responsibility to the job seeker who belongs to a discriminated minority, but the boss, Tim Cook for example, should act on his moral outrage to hire the minority only when the job applicants have the same technical job qualifications and experiences.

  17. Rich Davis (@RichDavis9) - 8 years ago

    Because someone of hispanic descent that only owns 645 shares can dictate that at least one person at Apple’s upper management has to lose their job? That’s messed up.

    Apple only posts the people that are located in the US in upper management. Maybe Apple should post the people in upper management for each of the companies they have operations in, it would look a lot more diverse.

  18. John Smith - 8 years ago

    Apple – and everyone else – should hire the best person for the job.

    If that person is black, female, disabled, gay/lesbian then so be it. Fine by me.

    If Apple starts hiring on the basis of people being from some politically active special group or another – not ability – then that’s a sad day.

    Personally, I think Apple should start by scrapping ‘diversity reports’

  19. James Katt - 8 years ago

    Yes, this is a stupid requirement. It should be voted down. Diversity should never come before merit and performance.

    In case it is passed, then Apple should hire more ASIANS – including ASIAN-INDIANS (like Microsoft’s CEO). When Apple is 50%+ ASIAN, the no one can say that Apple doesn’t have diversity. ASIANS DOMINATE HIGHER EDUCATION AND THE TECHNOLOGY INDUSTRIES. ASIANS ARE PEOPLE OF COLOR – Higher performing color.

  20. Thomas Georgetown - 8 years ago

    Well, hashtagIamoffended by Antonio and his trending want of publicity

  21. Rich Davis (@RichDavis9) - 8 years ago

    Apple only has 20 positions, so each position has to be held by someone with a different skin color? Oh come on. Apple already had a Hispanic CEO, his name was Gil Amelio and he was born in Cuba. He wasn’t that great, so maybe that stench is still lingering.

    Apple hires predominately mexicans in their Mexico operations, Chinese people in their Chinese Operations. Japanese in their Japan base Operations, etc. and Apple’s just hiring who they think are the MOST QUALIFIED and they can’t hire based skin color, that would be RACIST. So, if they had to fire a white person to hire a non-white, then that person has a discrimination lawsuit. Hmmmmmmmm. Racism works both ways, now don’t it.

  22. jamkor - 8 years ago

    The people who are not diverse enough have one job. To make the shareholders money. Keep doing that and you can all be E.T.’s for all I care.

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Avatar for Ben Lovejoy Ben Lovejoy

Ben Lovejoy is a British technology writer and EU Editor for 9to5Mac. He’s known for his op-eds and diary pieces, exploring his experience of Apple products over time, for a more rounded review. He also writes fiction, with two technothriller novels, a couple of SF shorts and a rom-com!


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