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Apple Shareholder Meeting: No Dividend or Stock Split, Majority Vote Requirement for Directors

Apple's annual shareholder meeting has just concluded at its headquarters in Cupertino, California, with the company declining to make any major announcements related to its operations. One of the biggest questions on the stock side has been speculation about a dividend, buyback, or stock split, and while Apple has indicated that it is continually evaluating the best uses for its cash stockpile, the company has not decided to adopt any of those strategies so far.

CNBC posted a live blog of the meeting, outlining the formal agenda, brief statements from Tim Cook, and a brief Q&A session with shareholders. One change the company did announce is its adoption of a measure that will require members of Apple's board of directors to obtain majority votes from shareholders in order to be elected. The company had previously operated under a plurality vote standard in which directors need to obtain only a majority of the votes cast, omitting those who failed to vote their shares. Under the new policy, directors who do not receive a majority of outstanding voting shares will voluntarily step down. All current directors were easily re-elected.

Majority voting has increasingly become the standard among major companies, and major shareholders have been attempting to push Apple in that direction for several years. A non-binding proposal from shareholders on the topic was approved last year, but Apple declined to adopt it. The proposal was set to be revisited at this year's meeting, and while Apple opposed it in its proxy materials sent to shareholders, the company agreed to implement it even before today's vote results were released.

Tim Cook faced several other questions from shareholders today, touching on topics such as Apple's commitment to education and the company's lack of interest in owning music labels or television studios. Other topics included Apple's advertising on controversial television shows, its relationship with Facebook (Cook called Facebook a "friend"), and the possibility of an Apple television set (no comment from Cook).

Top Rated Comments

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28 months ago

Cook: no dividends, we only have one hundred billion dollars.


One trillion is the new one hundred billion and you're
not going to get there by tossing money around.

"Hey, let's charge the cultists $1.29 for ringtones
on music they already own and how about two
new adaptors for the iPaid 3 to work properly?
A couple of bucks for the slaves to make them
and we'll put $50 Apple stickers on them. Magic. :apple:
Rating: 10 Positives
28 months ago
Cook: no dividends, we only have one hundred billion dollars.
Rating: 9 Positives
28 months ago
I guess that even if Apple could afford to buy (a controlling stake in) all the big music or film companies, it wouldn't be able to due to anti-monopoly laws. And if it owned just one music and one film company, negotiations to get content from the others into iTMS would get harder - so they are happier not owning any music or film company.
Rating: 9 Positives
28 months ago

"Hey, let's charge the cultists $1.29 for ringtones
on music they already own and how about two
new adaptors for the iPaid 3 to work properly?


Yeah it's too bad Apple has such a stranglehold on consumers that they no longer have a choice related to purchasing...


A couple of bucks for the slaves to make them
and we'll put $50 Apple stickers on them. Magic. :apple:


Or they'll pay workers (of which there are thousands clamouring for an opportunity) to produce products, and price them so that people will choose to purchase them.

On a note actually related to the issue, I'm glad that they aren't going after music labels. Doesn't seem to be worth the money it would cost. It would only add headache.
Rating: 6 Positives
28 months ago
The problem with the MSFT dividend wasn't the dividend, it was the lack of earnings growth to follow. The dividend worked out fine for stockholders, as it does for any stockholders who prefer to make more money rather than less.

Splits affect nothing.

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A company does not belong to the shareholders but the creators and the users primarily. What exactly does Apple get from the stock market except good PR and big bonuses when execs cash in? What have shareholders gotten out of their investment? Well, going from about $12 to $513 last I heard. That's big profit. That's enough for you, people who only put their money in. The company belongs to the creators and the users, not to the stock market.

You want Apple $1,000? Wait a bit, and stop being greedy and wanting to cash the company in for fast profit. When shareholders actually start running the ship, it's going to hit an iceberg any minute. Shareholders' short-term profits mismanage corporations.


Yikes. Somebody needs to read a basic book on equity investment.
Rating: 6 Positives
28 months ago

Why does everyone seem to forget about the V-chip? Every TV/cable-box/sat reciever sold in America gives parents the ability to block stuff they might not want their kids to see.



Kids refuse to teach their parents how to use it.
Rating: 6 Positives
28 months ago

A company does not belong to the shareholders but the creators and the users primarily. What exactly does Apple get from the stock market except good pr...


This is totally untrue. Shareholders ARE the owners of a company. That is what being a shareholder and the selling of stock is all about. Please study basic finance and economics before you generate your opinions, let alone present them to the world.

As a consumer I MAY be a stakeholder (a term of dubious intent), but I have no rights of ownership or possession. When you hear people talk about stakeholders, understand they are attempting to undermine property rights and move de facto ownership from the real owners to those THEY believe are more deserving.
Rating: 5 Positives
28 months ago

A company does not belong to the shareholders but the creators and the users primarily. What exactly does Apple get from the stock market except good PR and big bonuses when execs cash in? What have shareholders gotten out of their investment? Well, going from about $12 to $513 last I heard. That's big profit. That's enough for you, people who only put their money in. The company belongs to the creators and the users, not to the stock market.

You want Apple $1,000? Wait a bit, and stop being greedy and wanting to cash the company in for fast profit. When shareholders actually start running the ship, it's going to hit an iceberg any minute. Shareholders' short-term profits mismanage corporations.

uh what:confused:? shareholder means you own a share of the company a share is a part of something, they work for the shareholder technically.

correct me if some parts are incorrect but I'm pretty sure there not
Rating: 5 Positives
28 months ago

LOL at someone thinking Family Guy is a "controversial" TV show. Reminds me of my cousin's family in Pennsylvania thinking The Simpson's was evil trash when it's the most religious show on any major network during prime time. One of my friends is a huge lover of Family Guy and he started his own church!


To join you off topic for a moment. Simpsons and sometimes Family Guy make me laugh, but there is absolutely no way I would ever let my children watch them. Does that make them controversial?
Rating: 5 Positives
28 months ago

One trillion is the new one hundred billion and you're
not going to get there by tossing money around.

"Hey, let's charge the cultists $1.29 for ringtones
on music they already own and how about two
new adaptors for the iPaid 3 to work properly?
A couple of bucks for the slaves to make them
and we'll put $50 Apple stickers on them. Magic. :apple:


Know what? Apple has gotten the prices DOWN. The bands and the networks had conspired to keep the price of ringtones much higher, including by making the purchase only for a certain amount of time. Like that 8-bit tune from Judas Priest to be your ring? Fork over another x.xx for another six months. Apple still gives you a ringtone maker in iTunes, so if you buy a song, you can put 30 seconds of it on your iPhone. No charge. I don't mind $1.29 a ringtone, because they mix it and cut it better.
Rating: 4 Positives

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