Activist investor Carl Icahn's attempt to get Apple Inc. to return money to shareholders was criticized by CalPERS.
“We are uncomfortable with a raider coming into a company with a proposal to disgorge cash,” Anne Simpson, senior portfolio manager and director of global governance for the $277.3 billion California Public Employees' Retirement System, Sacramento, said in an interview Thursday. “Carl Icahn is a Johnny come lately.”
CalPERS owned 2.4 million Apple shares as of Sept. 30. The pension fund is asserting itself after Icahn said earlier this month that he would try to win shareholder approval for his plan to ask Apple to increase the size of its stock buyback program.
Ms. Simpson said CalPERS agrees with Apple's current cash management strategy, which includes plans to return $100 billion to shareholders in the form of dividends and buybacks.
“We like what they're doing. They have a significant program for returning money to shareholders,” Ms. Simpson said. “Carl Icahn is late to the party. This debate's already been had. I'm not sure what Carl Icahn's proposal adds.”
Mr. Icahn, who has become a billionaire by buying stakes in companies and then publicly pushing for changes to boost the stock, has been urging Apple since August to increase the size of its repurchase plan. Mr. Icahn disclosed in a filing this month that he owns 4.7 million Apple shares, or about 0.5% of the iPhone maker.
Ms. Simpson criticized Mr. Icahn for being outspoken about his buyback plan, including Twitter messages about a dinner he had with Apple CEO Tim Cook.
“Sending tweets from under the dinner table — this is unseemly,” Ms. Simpson said.
Mr. Icahn didn't respond to a request for comment. Steve Dowling, a spokesman for Apple, also wasn't available.
