25% of beleaguered Dell’s shareholders withhold support for CEO Michael Dell

“One quarter of Dell shareholders showed their disdain for Michael Dell, founder and chief executive, by withholding support just weeks after the computer maker settled a fraud case with the SEC,” Aaron Smith reports for CNNMoney.

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“In a filing to the Securities and Exchange Commission on Tuesday, Dell revealed that voters controlling 378 million shares withheld support for the CEO. Those controlling 1.13 billion shares voted in favor of him,” Smith reports. “Among the 11 directors at Dell, Michael Dell received the lowest number of supporting votes.”

Smith reports, “The filing came out just days before Dell is scheduled to report quarterly results on Thursday, and just weeks after the company agreed to pay a $100 million fine to settle fraud charges with the SEC.”

Full article here.

Ashlee Vance and Miguel Helft report for The New York Times, “Joseph A. Grundfest, a Stanford law professor and co-director of the Arthur and Toni Rembe Rock Center for Corporate Governance [said], ‘It is extremely rare to have that amount of shareholder disaffection directed toward an executive who is so central to the company’s past, present and future.'”

“The protest vote faced by Mr. Dell, who owns 11.7 percent of Dell’s outstanding shares, is unusual, but not unprecedented,” Vance and Miguel Helft report. “In 2008, Jerry Yang, Yahoo’s co-founder and then chief executive, was re-elected to the board but faced a 33.7 percent negative vote. Three months later Mr. Yang announced that he would step down as chief.”

Full article here.

MacDailyNews Take: Beleaguered Dell.


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