Pension fund wants majority vote

The California Public Employees' Retirement System (CalPERS), which represents the largest public pension fund in the country, is currently pushing Apple and other companies to revamp existing rules for handling board elections. The agency is pushing for a change that would require board members to receive a majority vote to keep their seats.

Apple has yet to accept the new rules voluntarily, according to a Wall Street Journal report (sub. required). In response to Apple's opposition, CalPERS has submitted an advisory shareholder resolution that will receive a vote in February during the company's annual meeting.

CalPERS argues that a majority-vote system promotes accountability, as directors become easier to oust during times of board reorganization. Apple's directors currently retain their position on the board with a single "yes" vote if the election is uncontested. If enacted, the changes would require directors to offer their resignation if they fail to receive support from the majority.

The agency has already submitted similar requests to 58 companies, although only 20 have agreed to move toward majority rules.

by MacNN Staff