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AAPL » Topics » Compensation Program Design

This excerpt taken from the AAPL DEF 14A filed Apr 16, 2007.

Compensation Program Design

The Company’s executive compensation program is designed to attract and retain top entrepreneurial and innovative leadership talent needed to execute its business strategy and achieve its business objectives.

The Company approaches executive compensation from a market total direct compensation (“TDC”) perspective. Market TDC includes the sum of base salary, short- and long-term bonus, and value of equity at time of grant. The Company does not offer a long-term bonus program.

The Company’s compensation program design utilizes a mix of base salary, annual bonus and equity.

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