Calpers to withhold votes for Apple’s entire board of directors

“Calpers, the biggest U.S. pension fund, said on Thursday it would withhold votes for Apple Computer Inc.’s entire board of directors after it failed to implement a shareholder-approved proposal to treat stock options as an expense,” Reuters reports.

“The California Public Employees’ Retirement System, which has assets of about $167 billion, also criticized Apple’s board for authorizing Apple’s auditor, KPMG LLP, to perform nonauditing, or consulting services, for the maker of Macintosh computers and the iPod digital music players,” Reuters reports. “Calpers said it would withhold voting its 1.48 million shares from the entire board, vote them against ratifying Apple’s auditor, and against a shareholder proposal limiting executive compensation, saying the ‘proposal is too restrictive.’ An Apple spokesman was not immediately available to comment.”

“Calpers is withholding votes for Apple board members William Campbell, Millard Drexler, former U.S. Vice President Al Gore, Jobs, Arthur Levinson and Jerome York, all of whom are standing for reelection,” according to Reuters.

Full article here.


  1. So CALPERS is upset the board didn’t adopt one shareholder proposal (stock options as expenses) yet is opposed to another shareholder proposal (limit executive pay).

    They were critical of the board giving Jobs a $90million jet but feel the shareholder proposal on executive pay is to restrictive. Are they never happy?

    I tend to agree on the auditor – that should be their only function – otherwise they are auditing themselves in the process.

  2. With todays prices, why doesn’t CALPERs just start selling their Apple stock and make some real money off of it. This political BS is not in the interest of their constituency. Go away CALPERs, the jury is still out as whether expensing options gives you a truer picture of financial performance. Suddenly, the income statements of companies begin to mimick the flunctuations in the stock market.

  3. Full of their own self-importance following the press they got about Eisner. The stock has more than doubled in the past year and the company’s profits are finally coming out of the doldrums.

    Yeah, time to sack the board and replace it with…….Gil Amelio. No wait, better yet, let’s put Mehdi Ali in charge. Now that guy really knows how to run a successful computer company.

  4. Calpers is right about expensing stock options. But it’s still “optional.” And Apple’s performance shows they’re doing just fine. Calpers ought to take on some really evil companies first. Then, when all the bad companies, awash in fraud and bleeing losses, are taken care of, that is the time to come to Apple to talk about tidying things up a bit.

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