CalPERS, Apple Tangle Over Corporate Governance Issue
According to a Wall Street Journalreport, that policy could put Apple (AAPL) directors on edge if passed -- but the likelihood of their failing to generate a majority of votes may be slim-to-none.
Last year, according to a Securities and Exchange Commission filing, Apple's seven directors were easily re-elected by a comfortable margin. Nonetheless, CalPERS still wants Apple -- and the more than four dozen companies that comprise the largest holdings in its portfolio -- to adopt a majority vote policy.
Apple, according to the Journal, is in a particular sticky situation -- since it's incorporated in California. The Golden State requires directors to resign if they fail to win a majority of votes at the annual shareholder's meeting, or if their company has a majority vote policy in place. But other states allow a company's board to ignore a director's request to submit their resignation.
Apple, which is scheduled to hold its annual shareholders meeting in February, will likely ask its investors to vote "no" on the CalPERS shareholder proposal.