Apple shareholders should reject Icahn's buyback proposal: proxy advisor

SAN FRANCISCO Fri Feb 7, 2014 12:52pm EST

A clerk arranges Apple's iPhone 5C phones on racks bearing the logo of China Mobile, at a mobile phone shop in Beijing December 23, 2013. REUTERS/Kim Kyung-Hoon

A clerk arranges Apple's iPhone 5C phones on racks bearing the logo of China Mobile, at a mobile phone shop in Beijing December 23, 2013.

Credit: Reuters/Kim Kyung-Hoon

Related Topics

SAN FRANCISCO (Reuters) - Proxy advisory firm Egan-Jones advised Apple Inc shareholders on Friday to reject activist investor Carl Icahn's demand that the iPhone maker expand its stock buyback program, a proposal that will be put to a vote this month.

"The board and management team have demonstrated a strong commitment to returning capital to shareholders over the past two years," the firm, the smallest of the three major proxy advisory outfits, said in a report obtained by Reuters on Friday.

Icahn is waging a campaign to get Apple to return more cash to shareholders and has filed a resolution proposing that it gives back $50 billion more through share buybacks. That proposal will be put to a vote at Apple's Feb 28 shareholders' meeting.

(Reporting by Edwin Chan; Editing by Bernadette Baum)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
WestFlorida wrote:
There surely must be something wrong with someone like Ichan who has never lifted a finger in producing anything or contributing anything to Apple can step in and walk away with a massive amount of cash that he did not earn. The laws need to be changed to stop this type of frivilous corporate shake-down-job. Can someone name a single company that this mogul has been involved with that has benefitted in the medium or long run?

Feb 09, 2014 10:03am EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.