• A comprehensive mental health and well-being hub where employees can find events, apps, and other resources • Month-long wellness events for team members across Apple to support one another and build healthier habits Our health plans are designed to support the various life stages of our employees and their families. They are transgender inclusive, where legally and plan allowed, and support routine care, therapies, and other medically necessary surgeries. Life and family Apple also provides a number of benefits to support our employees in their personal and family life, including: • Retirement programs to help employees with their future financial needs, such as 401(k) matching contributions in the U.S. and local retirement plans for employees outside of the U.S. • Referrals and resources for childcare, which includes backup care in the U.S., as well as before- and after-school programs, programs for children with special needs, and more • Consultations and referrals to support employees caring for an elderly family member • Adoption, surrogacy, and fertility services • Financial coaching services • Tuition reimbursement • Legal services for adoption, child support, housing, wills, identity theft, and more Coming back to work after the arrival of a child can be a big adjustment for employees, so to smooth the transition period following the arrival of a new family member, our gradual return- to-work program allows employees to choose to return half-time at full pay for four weeks — whether they’re welcoming a child through birth, adoption, or other covered means. Time away Taking the time to recharge is an important part of employee health and well-being. We provide a wide variety of time-away options for our employees, including: • Vacation • Paid sick time and medical leave for serious health conditions 18 • Pregnancy leave and New Parent Leave 19 • Leave for bereavement or to care for a sick family member • Time off for voting, jury duty, and other civil obligations • Company holidays throughout the year Product discounts Apple’s Employee Purchase Plan offers special pricing on most Apple products. We offer substantial discounts on hardware, software, and accessories for employees, families, and friends — as well as an additional credit that can be used to purchase a Mac, iPad, or unlocked iPhone once every two years. Compensation We believe that our compensation should not only be highly competitive across all types of roles, levels, and talent markets; it should be equitable and enable all team members to share in the company’s success as shareholders of Apple. We’re committed to being a leader in pay equity, providing all employees with annual opportunities for stock ownership in the company, and offering highly competitive pay that’s in the top tier of each local market. And we hold our leaders accountable by incorporating Apple values and key community initiatives into our executive short-term incentive plan. Competitive pay Apple is committed to remaining a market leader in compensation through our highly competitive and equitable programs. In addition to our stock program and wide range of benefits we provide, we regularly review our competitive position to establish our leading starting pay rates in each local market. Apple stock ownership In 2015, we introduced our Stock Ownership Program, which was designed to reach employees who were not previously eligible for restricted stock unit (RSU) awards, including all of our retail and AppleCare teams. By the end of 2022, over $1.1 billion of RSU grants will have been awarded under this program, and the shares underlying the RSUs today would have an estimated value of over $3 billion (based on a share price of $130.06 as of June 16, 2022). Apple is one of the few companies in the S&P 500, and the largest technology company, in which employees at all levels are eligible for RSU grants on an annual basis. In 2021, 150,000 employees were eligible for RSU grants and our Compensation Committee approved grants for 99% of those eligible. In most countries, employees also get discounts when purchasing Apple stock by participating in the Employee Stock Purchase Plan (ESPP). Currently, 81 percent of eligible employees participate in the ESPP. ESG Modifier Beginning in 2021, the Compensation Committee incorporated the ESG Modifier into the Executive annual cash incentive program. The ESG Modifier is based on a holistic evaluation by the Compensation Committee of key accomplishments and actions taken during the year to advance our Apple values: accessibility, education, environment, inclusion and diversity, privacy, and supplier responsibility, and key community initiatives which were chosen because they represent long-standing, business-relevant environmental, social, and governance principles that reflect Apple’s commitment to promoting values-driven leadership. Pay equity Since 2017, Apple has achieved and maintained gender pay equity for our employees worldwide. In the U.S., we’ve also achieved pay equity with respect to race and ethnicity — as well as pay equity at the intersections of race and ethnicity with gender.* In addition to our pay equity commitment, our Inclusion and Diversity program (see page 23 ) supports growth, development, and engagement for team members of all backgrounds. We have a number of practices in place to support our commitment to pay equity, including: * Pay equity at the intersections of race and ethnicity with gender was achieved in 2022. Appendix Governance Communities Suppliers Customers Our P eople Environment Introduction Apple’s 2022 ESG Report 28