Majority rules at Apple

Score another one for the shareholder activists. Under the leadership of the California public sector unions' pension fund, shareholders at Apple have pushed through a resolution to institute majority voting for directors of the computer and iTunes company. The California Public Employees' Retirement System, known as CalPERS, overcame opposition from Apple's board and won the vote. It may not matter, of course. As with most US shareholder resolutions, the result is not binding. That didn't stop CalPERS from celebrating a victory, however. "As a company that thrives on innovation, Apple should have the best governance practices possible,” said Anne Simpson, who heads the CalPERS corporate governance programme. "Good boards have nothing to fear in acknowledging a fundamental right of shareowner democracy to elect directors by a majority vote." The company currently operates a "plurality vote", meaning that shareowners who oppose candidates only to withhold votes, making it possible for election of an unopposed candidate by a single vote in favour.

Apple has become a particular target for activist shareholders as a result of the discomfort many have felt over the company's reticence concerning the illness of CEO Steve Jobs and the absence of information about a possible successor.

Source document: The CalPERS news release gives a bit more detail.