During its shareholders meeting in February, Apple will bring up 11 proposals on which shareholders are expected to vote. While many of them are without controversy, Proposal No. 10 has been given special attention from the company. The proposal was submitted by billionaire investor Carl Icahn. The proposal calls for the company to increase its stock buyback program by investing an additional $50 billion by the end of next year.
The stock buyback program was implemented last year after reports surfaced about Apple’s massive cash surplus that wasn’t being put to use, and Icahn was one of the biggest supporters of the company putting the money back into a stock buyback program that would give some of the money back to the investors. Below is Icahn’s proposal that will be submitted at the next meeting.
RESOLVED, that the shareholders hereby approve, on an advisory basis, High River’s proposal that Apple commit to completing not less than $50 billion of share repurchases during Apple’s fiscal year ending September 27, 2014 (and increase the amount authorized for share repurchases under its Capital Return Program accordingly).
While the proposal would be a “Non-Binding Advisory Resolution,” meaning Apple wouldn’t have to invest the $50 billion even if shareholders voted for the proposal, the company is still urging shareholders to vote against the program. The company claims that it is still considering other options for returing cash to shareholders, but it is not ready at this point to make a decision. As a comparision, the company spent over $20 billino on a similar program in 2013.
The proposal will be voted on by shareholders at the company shareholder meeting held in February, and at that point, we will see whether or not Icahn’s proposal will pass. What do you think about Icahn’s proposal to invest more back into shareholders? Leave your thoughts below, or tweet me at @TiP_Griffin.