With Apple ’s yearly shareholder meeting just a hebdomad away , the company ’s current circuit card of director is getting a cold shoulder from a guide advisory firm for institutional investor . Proxy advisory firmInstitutional Shareholder Servicesis recommending that investors withhold their voting for most of Apple ’s current panel at the May 10 shareholder confluence , adduce the stock - option backdating investigating that culminated in the SEC settling with one former Apple administrator while pursuing a case against another .
ISS has told its clients to keep back votes for all fellow member of the past and present compensation commission — Millard S. Drexler , William V. Campbell , Al Gore , and Arthur Levinson — and the special committee — Gore , Jerome B. York , and Eric E. Schmidt . Apple chief operating officer Steve Jobs was go away off the ISS ’s list .
“ As for Steve Jobs , ISS will continue to monitor the situation as it blossom and update our vote good word , if necessary , ” the ISS report said .
The recommendation from ISS is unlikely to cost current board member their rump , given that Apple apply a pack or “ undivided winner ” voting system to pick out control panel member . But its composition say that a “ no ” vote on the targeted panel members would “ serve as a strong signal ” to the board about investor unhappiness in the wake of an investigating into Apple ’s stock - option backdating recitation .
ISS cited several concerns with the how Apple ’s board conducts line of work . Specifically , its report pick apart Apple for not provide stockholder with details about the safeguards it plans to impose to prevent a repeat of the backdating practices that tie the attention of the Securities and Exchange Commission . Further , ISS contends that Apple leave no detail about the timing of its equity awards or the grant favorable reception process . It also criticizes the member of Apple ’s recompense citizens committee and the peculiar committee for failing to invalidate , re - price the backdate options or recoup the gains of exercised options pick up by executives in January 2001 .
This is not the first meter Apple has raised the anger of the ISS . In 2003 , the proxy consultive firm advocate withholds from almost all members of the board , including Steve Jobs , for behave an option exchange program without prior shareowner approval .
“ Once again , Apple is display a shape of pitiful remuneration practice and neglect for stockholder ’ stimulant on compensation issues at the company , ” the ISS report say . “ The Apple plug-in ’s treatment of the entire choice imbroglio does not inspire investor confidence . ”
Apple accommodate its annual shareholders coming together on May 10 , 2007 , at the company home base in Cupertino , Calif.
Last week , the SEC allege that former Apple general counselor Nancy Heinen helped backdate choice give way to Apple ’s top executives , causing the ship’s company to under - account expenses by almost $ 40 million . Similar bearing against former chief fiscal military officer and add-in member Fred Anderson were settle when Anderson gibe to pay off $ 3.5 million in punishment . Anderson blamed the backdating imbroglio on Jobs , a statement that brought a public rebutter from Apple ’s current control panel members .
