QUESTIONS:

1. We saw the major components of chief executive officer compensation. Apple’s ESG incentive focuses primarily on the bonus. In thinking about the (a) typical size of the bonus relative to total chief executive compensation and (b) taking into account the size of the ESQ “modifier” Apple will use (based on ESG performance), do you consider the incentive to achieve ESG goals to be too small, too large, or just about right? Explain.

2. In looking at the ESG incentive at Starbucks, is it about the same, stronger, or weaker than what Apple will use? Explain.Given Starbuck’s business strategy and its stakeholders, would it make sense for Starbucks to use the same, stronger, or weaker ESG incentives, especially in the diversity and inclusion area, compared to Apple?

3. Do you have any suggestions for either or both companies that might make their ESG incentives more effective?

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