Apple shareholders are the latest to jump into the fray of a lawsuit against Apple over its anti-poaching agreements with a number of other tech companies. As we’ve previously reported, Apple, Google, Intel, Adobe, and a laundry list of other companies allegedly created illegal pacts to avoid hiring each others’ engineers, allowing each employer to keep its wages low without running the risk of a competitor snatching up its competition with a better deal.
Now, a little over a weekÂ after a class action settlement was rejected by the court for being too low, Apple shareholder R. Andre Klein has filed a derivitiveÂ complaint on behalf of all Apple shareholders (embedded below) accusing the companyÂ of “breach of fiduciary duty, gross mismanagement,Â waste of corporate assets, and breach of the duty of honest services.”
The shareholders’ case is based on the same evidence that has been presented during the class action suit brought by current and former employees of the companies involved in the agreements. You can read the entire filing below:
This morning, Apple is holding its 2014 official shareholders meeting from its Infinite Loop campus in Cupertino, California. The proceedings are just beginning, and Apple executives are expected (per usual) to field questions from attending shareholders.
One of the orders of business at this meeting is voting to approve or reject both proposals from Apple’s management and shareholders. Bloomberg‘s Jon Erlichman reports that shareholders have rejected every proposal created by other shareholders while all proposals from Apple management have been approved…
The rejected shareholder proposals cover a Board Committee for Human Rights, Carl Icahn’s infamous (and recently withdrawn) share repurchase proposal, Proxy Access for Shareholders, and a report related to Company Membership and Involvement with Certain Trade Associations and Business Organizations.
Late last year, Apple recommended that shareholders vote against the Icahn and Board Committee for Human Rights proposals. Apple said thatÂ it “is committed to the highest standards of social responsibility and human rights wherever we do business.” The company added that its Board of Directors “is aware of no other company that does as much to safeguard and empower workers as the Company does today.”
Regarding Carl Icahn’s proposal, Apple CEO Tim Cook and CFO Peter Oppenheimer have been reluctant to taking Icahn’s suggestions. Instead, the company is moving carefully with its money by focusing on research and development, acquisitions, and future product pipelines.
During the meeting, Cook told shareholders that Apple made $1 billion in revenue (from both hardware and content sales) in 2013 from the Apple TV. This number led Cook to say “it’s a little more difficult to call it a hobby these days.” We previously reported that Apple is working on a successor to the current Apple TV that will expand both hardware and software capabilities.Â Earlier today, Apple started promoting the Apple TV with a $25 iTunes gift card offer. The promotion is active through the middle of next week.
Cook said that several billion iMessagesÂ are sent each day. Cook also stated 15 to 20 million FaceTime video calls are conducted each day.
CNBC video on the shareholder meeting (with notable comments from Cook):
Cook said research and development spending up 32% year-over-year, Apple is putting its money “where its mouth is.” Cook added that Apple bought 23 companies over the last 16 months and that Apple is not opposed to buying a bigger company if it is the “right fit.” Cook also talked about opportunities in new emerging markets. Cook said that Apple would have an announcement regarding its share buyback program within 60 days.
AppleÂ filed documents today with the U.S. Securities and Exchange Commission to announce the nextÂ annual shareholder meeting held at the companyâs headquarters on Feb. 27, 2013.
The proxy statement revealed CEO Tim Cookâs compensation in 2012 equaled less than $4.2 million, but it also detailed six proposals shareholders would vote on at the meeting. The notable proposals include the election of the company’s board and whether Apple should have aÂ âBoard Committee on Human Rightsâ.
Cook’s 2012 compensation included $1.36 million in salary with no stock awards and a $2.8 million incentive plan, where as hisÂ 2011 compensation totaled $378 million. However, last year’s mammoth figure included $376.2 million in stock awards that heâll earn over a decade.
As for the board, Apple seeks to re-elect Cook, ChairmanÂ Arthur Levinson, and directors Al Gore, William Campbell, Millard Drexler, Robert Iger, Andrea Jung, and Ronald Sugar. Apple’s board decidely recommended in the filing that shareholders vote against a proposal to have a Human Rights committee.
The proposal originated from common stock owner John Harrington, who owns at least $2,000 in market value stock, and he wishes to create a separate board committee on Human Rights that wouldÂ âreview the implications of company policies, above and beyond matters of legal compliance, for the human rights of individuals in the US and worldwide.”
The board said the committee isn’t necessary, because Apple is “committed to the highest standards of social responsibility and human rights wherever we do business.”
As for details on the executives’ salaries, check out the table below from the SEC filing:
As noted above, the filing details Cook’s compensation for 2012. His base salary for fiscal 2012 increased from $900,000 in 2011 to roughly $1.4 million in cash to reflect his responsibilities for “the overall leadership of the Company.”
Cook alsoÂ participates in the same performance-based bonus program as the other executive officers, and so he has the same target and maximum bonus opportunities of 100 percent and 200 percent, respectively, of his base salary. The bonuses for each executive, of course, chiefly depend on the company meeting set performance goals.
Steve Ballmer just wrote a letter to Microsoft shareholders about the future of Microsoft and to update them on how much money they're printing with Office and the Enterprise market. The letter is mostly a bore fest but Ballmer points Microsoft's future towards devices. Meaning, Microsoft believes in making actual stuff. More »
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After numerous mobile lawsuits from Apple, Samsung CEO Choi Gee Sung explained that the company plans to be more aggressive in securing patents that can be used to defend itself, Bloomberg reported on Thursday. During the company’s annual shareholders meeting, Sung said that due to slow industry-wide growth and strong competition, the company was bracing for a tough year. “The electronics industry will enter a low-growth period,” he said. “Reorganization of the industry will gain speed and competition among global players will intensify.” Shareholders also approved the companyâs plan to spin off its LCD division on April 1st. Samsung posted record revenue last year â thanks largely to its Galaxy smartphones â and looks to enhance its competitiveness in hardware, while strengthening new businesses including medical equipment in 2012. BGR exclusively reportedÂ last month that Samsung will launch its flagship Galaxy S III smartphone later this year with a 1080p high-definition display, a ceramic case and a quad-core 1.5GHz Exynos processor.
During the company’s annual shareholders meeting on Thursday, CEO Tim Cook acknowledged that Apple has more money “than we need to run a company.” Apple’s board is currently engaged in “active discussionsâ about what to do with the $100 billion in cash it has on hand, hinting at the possibility of a dividend. “The board and management team are thinking about this very deeply,â Cook said. A dividend returns a portion of the company’sÂ profitÂ to shareholders, and the last time Apple paid one was in 1995 prior to the return of Steve Jobs. Investors have pushed the company to again pay a dividend, hoping it will boost Appleâs stock price by bringing in a new breed of investors, reports Bloomberg. “You can be assured we are working as hard as ever this year to deliver an incredible year and some products that will blow your mind,â Tim Cook also noted during the meeting. Apple is expected to release a new iPad next month, an HDTV this summer and a redesigned iPhone this fall.