Apple’s long-term shareholders can now nominate board members

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By Larry Banks

Apple this week became one of the latest US companies to allow long-term shareholders to nominate board members.

Apple said in a filing that shareholders who own at least 3 percent of outstanding shares continuously for at least three years, would be able to nominate directors.

Other firms who have adopted a similarly new “proxy access” rule this year include Microsoft, Staples, Big Lots and Whiting Petroleum Corp.

Proxy access allows shareholders to nominate directors to stand against a company’s chosen nominees. But it has generated increasing debate this year, for example pension funds led by Calpers and the New York City Employees’ Retirement System have submitted over 100 resolutions at shareholder meetings and demanded proxy access.

Under Apple’s new rules, groups of up to 20 shareholders can nominate up to one fifth of the board, the company said in its filing.

Apple’s board today has eight members sat on its board,  including CEO Tim Cook and Walt Disney co-CEO Bob Iger.

SOURCE: Reuters.

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