Apple Inc. shareholders on Wednesday passed a CalPERS-sponsored proposal calling for the company to adopt a majority-vote standard to elect directors in uncontested elections, according to a statement from the $226.5 billion pension fund.
The proposal by the California Public Employees' Retirement System, Sacramento, sought to replace the standard Apple now uses, electing directors by a plurality of votes.
Kristin Huguet, Apple spokeswoman, could not be reached to confirm the vote or comment on whether the company will implement the proposal. Apple had opposed the proposal, which passed by a majority vote of shareholders.
“As a company that thrives on innovation, Apple should have the best governance practices possible,” Anne Simpson, senior portfolio manager and head of CalPERS' corporate governance program, said in the statement. “Good boards have nothing to fear in acknowledging a fundamental right of shareowner democracy to elect directors by a majority vote.”
CalPERS owns 2.6 million Apple shares.