Greater power to oust directors and influence strategy
What could go wrong?...Is Carl Icahn a share holder? God help them if he is...
Apple has introduced new rules to allow shareholders to nominate new board members, making it the latest company to cede greater control to investors. The "proxy access" bylaws, revealed in a regulatory filing, mean shareholders have greater power to oust directors and influence strategy. Under the new regime investors can …
Maybe not yet... same for Elliot and the other vultures. But in 3 years, Apple may start reaping what they are sowing today. I'm not a Fanboi, but I'd sure hate to see them torn up and fed to the wolves just so some vulture clown can make a pile of cash and have bragging rights for destroying therm.
Its only 20% of the board so it gives them a voice but that's very different than having control. When other companies have done this pretty much nothing changes, except that activist shareholder motions can't just get rejected without even being voted on. Now they will have to be voted on, but still won't be enacted.
No big fan of Apple here, but talk about flopping your "family jewels" on the table, and handing everyone in the room cleavers!
So now, some fatass "activist investor" (read: Carl Ichann, or some other degenerate of his ilk) can come in, buy up a buncha shares, and in 3 years' time, devastate the company by chopping it to bits, selling off the parts that can recognize said fatass a quick profit, then leave the smoldering hulk of the company for someone else to clean up. In the meantime, both customers and employees are fucked.
Steve is doing a Dyson1 in his grave.
1 For those of you who do not get American TV (including by choice), Dyson Vacuum Cleaners have been running ads touting their "new, digital motor" that allegedly runs at 103,000 RPM. I have no idea how a motor that runs on 1's and 0's could possibly rotate at any speed, but I don't make vacuum cleaners, so what do I know?
Maybe. But it can't hurt that Tim Cook was bloody good at his job as COO. Jobs knew his days at Apple might be numbered, and his ways of doing thing may be reflected by the people he left behind there.
Certainly the times are uncertain... whilst Apple are as well placed as any company (what with having mountains of cash to buy start-ups and talent, and having a carefully managed, consumer-friendly image) to get a lead in The Next Big Thing*, we know that incumbent companies can often let their position go to waste**. Apple are at least aware of this, and have demonstrated some agility in the past.
*I don't know what that might be. Anyone here who thinks they do will be busy with NDAs and research, and won't be daft enough to post their ideas here.
**Easy example: Sony could have made an iPod-like device before Apple, if only they had seen which way the wind was blowing. They had years of research into suitable UIs and portable audio to draw upon.
Shareholders are only interested in profit, and they don't really seem to give a shit if a change pisses off customers.
So I almost see CEOs and senior board members, as a way to temper shareholders' demands, but still keep the company afloat.
Let's sell Cadbury's to an American company, the American company then changes the recipe to be cheaper and therefore ruins the USP of Cadbury chocolate - people no longer buy Cadbury chocolate.
I truly miss my Cadbury Creme Eggs :(