CalPERS wins ‘high profileThe California Public Employees’ Retirement System has won a “high-profile” victory in its effort to pressure Apple to reform the way the tech giant’s board members are elected, reports the “Sacramento Bee” (http://macte.ch/AHbQC). At Apple’s annual shareholders meeting in Cupertino, California, on Wednesday, shareholders approved a CalPERS proposal to adopt a majority vote requirement for board elections.
The CalPERS proposal is non-binding, but puts pressure on Apple to approve the plan, says the “Bee.” Currently, nominees to the Apple board who are unopposed don’t need a majority of shareholders’ votes to be elected.
A nominee could win election with only one “yes” vote. Shareholders who don’t like a particular nominee can “withhold” their vote, but it has no practical effect. For the past year, CalPERS has been pressuring Apple and 57 other companies to adopt a majority-vote rule for board elections.