A one-article summary of Apple's 2026 Annual Shareholders Meeting: 5 issues, 1 rejected, Cook not retiring

On February 24, 2026, U.S. local time, Apple held its 2026 Annual Shareholders Meeting.

During this meeting, Apple shareholders approved all four management proposals: board member nominations, appointment of an accounting firm, executive compensation voting, and non-employee director stock incentive plans, and rejected the only shareholder proposal regarding “China-related audit,” with the overall outcome aligning with the board’s recommendations.

Board Proposal: Stability and Continuity

The 2026 Apple Shareholders Meeting included five voting proposals, four of which were management proposals.

The Apple Board of Directors recommended shareholders vote in favor of these four proposals, which were ultimately approved.

• First: Election of Board Members

In January, Apple nominated eight current directors for re-election, with terms ending at the 2027 shareholders meeting. Shareholders approved all director nominations at this meeting.

Structurally, Apple’s board continues to be composed mainly of experienced members, most with management backgrounds in multinational corporations or large institutions, covering technology, consumer brands, biotech, defense and aerospace, and financial investment sectors. The majority are independent directors, maintaining the board’s independence in governance and oversight.

The eight directors re-elected are:

• Second: Reappointment of Ernst & Young as the independent registered accounting firm for fiscal year 2026

• Third: Executive Compensation Vote

Shareholders approved the executive compensation plan for fiscal year 2025.

According to company disclosures, Apple CEO Tim Cook’s target total compensation for FY2025 is $59 million, including a $3 million base salary, $6 million in cash incentives, and $50 million in target equity awards, with an actual total compensation of $74.3 million.

Of this, besides salary and equity awards, about $1.76 million includes other compensation items such as $21,000 in 401(k) contributions, $2,964 in life insurance, $57,700 in holiday cash, $787,900 in personal air travel, and $887,900 in security expenses.

Compared to approximately $99.4 million in FY2023 and about $63.2 million in FY2024, the actual FY2025 compensation is near the median of the past three years. The board recommended shareholders approve this proposal, which was ultimately passed.

• Fourth: Revision of Non-Employee Director Stock Plan

Shareholders approved the amended Non-Employee Director Stock Plan, which provides equity incentives to non-employee directors. The board recommended approval, and shareholders supported it.

Shareholder Proposal: China Business and Supply Chain Risks Focus

The sole shareholder proposal at this meeting was “China Entanglement Audit,” submitted by the National Center for Public Policy Research (NCPPR). It requested Apple prepare a special report assessing risks related to the Chinese market and supply chain.

Risks involved include:

• 2025 U.S. tariffs on Chinese goods up to 145%;

• Apple expanding manufacturing in India and Vietnam but still relying on Chinese components;

• Potential impact of restrictions on engineer support on overseas production;

• Risks of insufficient disclosure of related issues, potentially leading to litigation.

Proponents argue these factors could have long-term impacts on shareholders.

The Apple Board recommends voting against this proposal, stating that the company has already fully disclosed international operations and supply chain risks in its annual report, making an additional special report unnecessary. The board also noted that the proposal is highly directive and could limit the company’s operational autonomy in complex international environments.

Ultimately, shareholders rejected this proposal.

Despite the risk concerns about the Chinese market raised at the meeting, financial data shows another side.

In Q1 FY2026, Greater China generated $25.526 billion in revenue, up 22% year-over-year. This performance indicates that China remains a vital part of Apple’s overall business.

For Apple, China is both an important manufacturing base and a key high-end consumer market. Balancing diversified supply chain strategies with core market stability will continue to influence the company’s strategic direction in the coming years.

Leadership Transition: Preparing for Cook’s Era

Apple’s New Core Team

Since Tim Cook took over as CEO in 2011, Apple’s market value has grown from about $350 billion to over $4 trillion, with quarterly revenue increasing from less than $30 billion to over $100 billion.

As several key executives retire or leave, Apple’s management is undergoing significant changes, creating conditions for potential succession and future strategic planning.

Recently, during an all-hands meeting, Cook mentioned retirement topics for the first time, saying “When people reach a certain age, choosing to retire is very natural,” but did not specify whether he plans to retire soon.

In terms of personnel changes, from late 2025 to early 2026, several long-term executives, including former COO Jeff Williams and head of Environment and Policy Lisa Jackson, left the company.

Against this backdrop, senior hardware engineering VP John Ternus is gradually emerging as a potential successor. With nearly 25 years at Apple, experience in product design and engineering, and frequent appearances at product launches and public events, he is increasingly seen as a candidate for the next leader.

Apple has also adjusted its core management team, focusing on strengthening hardware innovation, XR product development, human-machine interface design, and R&D. These changes aim to maintain product competitiveness and innovation, while supporting leadership transition and strategic planning.

Recent personnel adjustments are not just routine role changes but signals of management updates intended to communicate to the outside world that the Cook era is transitioning to the next generation of leadership.

AI Strategy: Apple’s Next Step in Intelligence

The 2026 shareholders meeting did not mention any specific AI proposals, but that does not mean the AI buzz has faded.

Apple’s current strategic focus is very clear: no longer simply stacking algorithm parameters, but making AI the “glue” that connects hardware, XR (extended reality), and ecosystem services, to address intensifying industry competition.

Apple is redefining how users interact with the physical world through AI.

This strategy is first reflected in its aggressive XR roadmap: the expected release of a lightweight, screenless Air headset in 2026 as an entry point, attempting to bring real-time AI perception into mass consumer markets; and in 2027, a smart glasses device with display capabilities, aiming to revolutionize information presentation through AR and spatial computing.

In this process, Siri is evolving from a voice assistant into an intelligent hub that can “see” and understand the user’s environment by integrating visual patent technologies.

Ultimately, Apple’s AI strategy is a game about “experience density”: AI is not just software but an intuitive environment perception.

Financial Discipline and Long-Term Vision: Balancing Costs and Expansion

Apple’s Q1 FY2026 results are impressive—revenue of $143.756 billion, up 16% year-over-year, with gross margin rising to 48.2%. Behind these numbers, management is actively managing structural cost increases while continuing to invest in future strategies.

First, Apple is addressing cost pressures through a high-end strategy.

With rising costs for advanced process chips, high-bandwidth memory, and supply chain infrastructure, Apple faces significant supply chain cost pressures. The company relies on strong performance of the iPhone 17 Pro series and high-end Mac products, leveraging brand premiums to offset raw material cost increases, maintaining stable gross margins. This demonstrates Apple’s pricing power and cost control in the premium segment.

Second, R&D investment remains high.

In Q1, R&D spending reached $10.887 billion, up 32%, outpacing revenue growth. These funds are mainly used for underlying system optimization, in-house chip development across generations, and XR device technology and ecosystem development.

Third, Apple is promoting integrated development of hardware, services, and new technologies.

High-end iPhones and Macs sustain Apple’s hardware core, with 2.5 billion active devices supporting stable cash flow from services like App Store, subscriptions, and advertising. In new tech areas, the company collaborates with external tech platforms and strengthens internal R&D and strategic acquisitions to enhance computing and software capabilities, improving overall product and service experience.

Looking at Q1, Apple balances cost control with long-term investment, using premium product pricing to buffer short-term cost pressures while increasing R&D to support future growth. This prudent, targeted approach provides stability for leadership transition and helps maintain competitive advantage in the future.

Source: Tencent Technology

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