We encourage open and honest communication among team members, managers, and leadership as we seek to build a better work environment for all. Another way team members can let us know how Apple is doing is to participate in surveys that we conduct regularly. These survey results are a great way for us to learn about what’s going well and how we can do better in areas like career development, manager performance, and inclusivity, and teams are encouraged to create action plans based on the survey results. We conduct annual surveys for all Apple Store and AppleCare team members to listen to their views on topics like leadership, management, career development, performance, values, culture, and work environment. And leaders from each organization use the survey insights to take steps to better support team members where they need it. Over the last two years in particular, we focused on listening to Apple Store and AppleCare employees as they were interacting most directly with customers during the pandemic and experiencing rapid change in how they worked to support those customers. For our early 2022 surveys, 76 percent of Apple Store team members and 73 percent of AppleCare team members participated. Annual compensation planning: During our annual compensation planning process, the People team uses analytics to assess promotion rates, performance ratings distribution, and pay metrics for women compared to men and, in the U.S., for underrepresented groups compared to non-underrepresented groups. Global compensation history policy: We don’t ask candidates for salary history during the recruiting process, which has been our policy globally since 2019. Our recruiters develop offers of employment based on the compensation of current Apple employees in similar roles using a tool developed specifically for this purpose. Engagement At Apple, we believe that open and honest communication among team members, managers, and leaders helps create an open, collaborative work environment where everyone can contribute, grow, and succeed. Across all our teams, we’re always building on our long-standing commitment to creating an environment where people at every level of the company feel connected and supported. Our goal is to listen and learn — and to use those lessons to build an even better workplace for all. If team members have questions, feedback, or concerns, they’re encouraged to share them with their manager. If a team member is ever uncomfortable raising a particular issue with their manager, they can discuss it with any manager at Apple, their People Business Partner, People Support, or they can contact the Business Conduct team. Pay equity at Apple Our pay equity review is global and covers 100 percent of our employees. We consider total compensation, including base salary, bonus, and stock. 1:1 gender pay equity globally 1:1 pay equity in the U.S. by race and ethnicity 1:1 gender pay equity in every country 1:1 pay equity in the U.S. at the intersections of race and ethnicity and gender Annual pay equity review: To maintain pay equity, we engage an independent third-party expert to build and run statistical models to assess and resolve any differences in total compensation on the basis of gender and, in the U.S., on the basis of race and ethnicity and at the intersections with gender. Job assessments: Apple’s dedicated compensation team regularly conducts comprehensive job title reviews to ensure that employees are in the correct job title, which is an important factor in determining pay. We also continuously analyze market data to ensure that compensation guidelines for all roles remain competitive. Empowering employees to support the causes they care about Our Employee Giving program provides opportunities for employees to contribute to the causes they care deeply about with the support of Apple. From volunteering to donations to smaller individual actions, Apple is committed to giving, hand in hand with our team members. Read more on page 67 . Apple has a no-retaliation policy. Retaliation against anyone who comes forward with a concern or participates in an investigation is grounds for termination. We respect each team member’s right to form or join (or refrain from joining) organizations of their choice in a lawful manner without discrimination, retaliation, or harassment. Appendix Governance Communities Suppliers Customers Our P eople Environment Introduction Apple’s 2022 ESG Report 29
ESG Report | Apple Page 28 Page 30