With bylaw tweaks, Apple grants activist one of three wishes
By Ross Kerber and Stephen Nellis
BOSTON/SAN FRANCISCO (Reuters) - Apple Inc's board relaxed some rules for director nominations by outside investors but stopped short of broader changes sought by an activist shareholder.
The new bylaws disclosed in a securities filing late on Thursday dealt with the mechanics of "proxy access," the sometimes controversial process allowing outside investors to nominate their own candidates to a company's board.
Just how much influence to give such investors has been a hot topic with the rise of activist shareholders who some executives fear may not have long-term corporate interests at heart. At Apple, this debate played out several years ago when billionaire activist investor Carl Icahn successfully urged an increase in share buybacks.
Apple, the world's highest-valued publicly traded company, moved last year to allow a group of up to 20 shareholders owning at least 3 percent of its stock to include their own director candidates, constituting up to 20 percent of the board, in its proxy materials.
Thursday's filing said shareholders also could re-nominate a director candidate regardless of the level of support he or she had won in earlier elections. Previously, shareholders were prohibited from re-nominating candidates who had gotten less than 25 percent at either of the company's last two annual meetings.
Apple also extended a procedural deadline for nominating shareholders and director candidates, and it limited its board's direction to unilaterally interpret certain provisions, according to the filing.
An Apple representative said the company would not comment beyond the filing.
Independent shareholder James McRitchie, who has pressed Apple to grant more proxy access rights, said the changes were welcome, especially on the re-nomination question. But he said Apple failed to address two of his other, larger concerns. Continued...