Apple Makes Majority Rule: Shareholders Have More Say in Board Elections
February 29 2012 by ChiefExecutive.net
Proposals for majority voting of directors have been around since the dawn of governance and it seems as though Apple may be finally hopping onto the bandwagon. Instead of requiring a plurality of shareholder votes to elect directors, Apple will now require a majority of shareholders.
And with the company sitting on such a large pile of cash (around $100 billion) increased participation may further increase the investors’ pressure to provide dividends or do stock buybacks.
This decision, which former CEO Steve Jobs was more hesitant about than current CEO Tim Cook, will have a major impact on other public US companies. It will be harder for other companies to resist making the same move.
Many see this move as a signal that Apple is entering a new stage with its new CEO. Tim Cook is making his mark. With such tremendous influence, will other companies follow suit?