CalPERS Moves Motion for Majority Voting Standards at Apple Annual Meeting, Shareowners Approve
February 28, 2014
External Affairs Branch
Robert Udall Glazier, Deputy Executive Officer
Brad Pacheco, Chief, Office of Public Affairs
Contact: Joe DeAnda, Information Officer
Apple-backed provision formally becomes part of company’s bylaws
SACRAMENTO, CA – The California Public Employees' Retirement System (CalPERS) today moved the motion at Apple’s 2014 Annual Meeting of Shareowners to adopt a requirement that candidates for uncontested seats receive a majority of votes cast in order to be elected to the Board of Directors. The company-backed motion was overwhelmingly adopted by nearly 80 percent of shareowners and formally amends Apple's bylaws to include the provision.
"Apple honored the wishes of its shareowners with its decision to voluntarily adopt a majority voting policy in 2012," said Anne Simpson, CalPERS Senior Portfolio Manager and Director of Global Governance. "Apple is leading Silicon Valley in governance measures, including sustainability, diversity, supply chain issues and human rights. Formally adopting majority voting standards is the capstone; it is a win for Apple and for all shareowners."
Today’s action comes two years after the company voluntarily implemented a majority voting policy in response to CalPERS-backed shareholder proposals.
More than 90 percent of the companies in the S&P 500, and 60 percent in the Russell 1000, have some form of a majority voting standard, an indication of the current direction of good corporate governance. This trend in good governance is reflected in CalPERS positive dialogue with companies in which it invests. More than 175 companies, largely from the S&P 500, have adopted a majority voting standard through our engagement efforts over the past four years.
Proposal No. 10, which CalPERS vigorously opposed as short-term and unnecessary, was withdrawn by Carl Icahn.
CalPERS owned nearly 2.8 million shares of Apple common stock as of January 31, 2014.
CalPERS is the largest public pension fund in the U.S., with approximately $283.5 billion in assets. CalPERS administers health and retirement benefits on behalf of 3,064 public school, local agency and state employers. There are more than 1.6 million members in the CalPERS retirement system and more than 1.3 million in its health plans. For more information about CalPERS, visit www.CalPERS.ca.gov.