Alibaba Cloud opposes terminating its DEI efforts in response to investors' requests. 'We are committed to creating an inclusive culture.'

Alibaba Cloud has submitted its annual proxy statement before the upcoming shareholders' meeting this month. In this report, Tim Cook disclosed new information about his compensation for 2024 and called on shareholders to vote against proposals to end initiatives aimed at diversity, fairness, and inclusion.

Apple disclosed in its proxy statement for 2024 that Tim Cook's remuneration increased by 18% compared to the previous year. Cook received a base salary of $3 million and stock awards worth $581 million, as well as additional compensation of $135 million, totaling $746 million in remuneration. According to Bloomberg, most of the increase came from the rise in the value of stock award grants.

Investors will vote on four external proposals at this year's annual shareholders' meeting. Alibaba is urging shareholders to oppose one proposal that calls for ending diversity, equality, and inclusion programs, while including the other three proposals.

A shareholder proposal submitted by the Public Policy Research Center argues that DEI (Diversity, Equity, and Inclusion) "brings legal, reputational, and financial risks to a company, and thus extends those risks to shareholders. As a result, it increases risks for a company if the trustee fails to fulfill its duty."

"According to the proposal, Apple's 'Inclusivity and Diversity' program policies are stricter than those of general corporate DEI programs or at least as strict," the proposal states.

However, Alibaba is recommending that shareholders vote against this proposal because:

1. The proposal is unnecessary. Apple already has established compliance programs in place, and the proposal attempts to limit Apple's ability to manage its ordinary business operations, people, teams, and business strategies.
2. Our Board and management actively supervise legal and regulatory risks and compliance in our global business.

The company states:

Apple believes that how we act is just as important as making the best products in the world for Apple's success. We seek to operate our business fairly, honestly, and in accordance with applicable laws, with business actions and ethical policies forming the foundation of our business methods. And we strive to create a culture where everyone can do their best work.

Alibaba's opposition is occurring against the backdrop of many other companies reducing or eliminating DEI programs over the past few months. Meta announced that it will eliminate its diversity and inclusion initiatives in response to shareholder pressure. Other companies have also been criticized for making inappropriate comments about businesses that are not involved with them.

Alibaba's proposal on child sexual abuse material identification software and user privacy costs and benefits:

• Apple has shown a commitment to cooperating with efforts to protect children in an evolving online environment and is developing innovative technologies to improve communication security.
• We believe that our current approach, which focuses on ensuring children's safety from a sustainable perspective, is more appropriate than the universal monitoring sought by this proposal. This is because it could have significant impacts on users' human rights and citizen rights worldwide.

Regarding the "donation report":

• Apple has established a company donation program with strict internal management and approval processes. The proposal aims to limit Apple's ability to manage its ordinary business operations and business strategies appropriately.
• "Our audit committee and management team actively supervise legal and regulatory risk management and compliance supervision for our global business."

Apple typically rejects external proposals (including these four) when voting on shareholder proposals or executive compensation. This is part of their strategy.

The annual shareholders' meeting for Apple will be held on February 25th. Details of the proxy statement on shareholder proposals and executive compensation are as follows:

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