Apple Quietly Removes Environmental Metrics from Executive Pay

Other major companies also scaling back climate-linked compensation as political opposition grows.

Feb. 23, 2026 at 6:22pm

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Apple Inc. has quietly dropped a provision that allowed its board to adjust executive bonuses based on the company's environmental performance, including greenhouse-gas reductions and renewable energy use. This move follows similar decisions at dozens of other major companies, including Starbucks, Salesforce, Mastercard, and Procter & Gamble, which have recently weakened or severed ties between environmental metrics and executive compensation.

Why it matters

Linking executive pay to environmental goals was once seen as a promising way to drive corporate action on climate change and other sustainability issues. However, the retreat from these practices signals a shift as political opposition to corporate climate efforts has grown, investor pressure has cooled, and some companies never fully integrated environmental goals into their core business strategy.

The details

Apple's 'ESG modifier' provision, in place since 2021, had allowed the company's board to adjust annual bonuses for the CEO and other top executives by up to 10% based on environmental performance. This has now been quietly removed from 2025 pay packages. Similar decisions have been made at other major corporations, with the share of S&P 500 companies tying executive compensation to environmental metrics falling from a peak of 52.6% in 2023 to 46.7% in 2025.

  • In 2021, Apple introduced an 'ESG modifier' that allowed its board to adjust executive bonuses based on environmental performance.
  • In 2023, the share of S&P 500 companies linking executive pay to environmental metrics reached a peak of 52.6%.
  • In 2025, Apple quietly removed the 'ESG modifier' from its executive compensation plan.

The players

Apple Inc.

A multinational technology company that designs, develops, and sells consumer electronics, computer software, and online services.

Tim Cook

The Chief Executive Officer of Apple Inc.

Starbucks Corp.

A multinational chain of coffeehouses and roastery reserves.

Salesforce Inc.

An American cloud-based software company that provides customer relationship management (CRM) services.

Mastercard Inc.

A multinational financial services corporation that facilitates electronic fund transfers throughout the world.

Procter & Gamble Co.

An American multinational consumer goods corporation that produces a wide range of consumer goods.

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What they’re saying

“If something isn't reflected in compensation, it rarely gets sustained attention at the leadership level. Linking pay…signals that these outcomes are core to performance, not side projects.”

— Namrita Kapur, Lecturer, Yale School of Management

“People do what they're paid to do.”

— Michael Garland, Corporate Governance and Responsible Investment, Office of the New York City Comptroller

“We saw a lot of bandwagon effects, including companies adding these metrics because everyone else was doing it and they thought it would make them look good. So, when the winds blew back in the other direction, they're like, 'Okay, I guess we'll take it out now.'”

— Jannice Koors, Senior Managing Director, Pearl Meyer

What’s next

The retreat from climate-linked executive pay could embolden more companies to follow suit, as political opposition to corporate sustainability efforts grows and investor pressure cools.

The takeaway

The pullback from tying executive compensation to environmental metrics signals that some companies never fully integrated sustainability goals into their core business strategy, and that these practices may be vulnerable to shifting political winds and waning investor focus on climate issues.