On Wednesday, Apple Inc. (NASDAQ:AAPL) held its annual shareholders meeting. Many wondered if it would say anything earth-shattering and CEO Tim Cook did touch on a few interesting topics.
Apple’s Declining Stock Price
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Cook said he is aware people are upset about the stock’s falling stock price and said via CNET, “I don’t like it either” He added neither does the board nor management.
But what will the company do to change this? Since its infamous September peak, the stock has fallen 35 percent and year-to-date, it’s down 16.41 percent. Investors are concerned about the growing competition from Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930)–among others–and some have been outspoken about it such as hedge fund manager David Einhorn; he wants the company to return cash to its investors.
He even went so far as to file a lawsuit.
Cook responded to this action as silly and said the company views increasing shareholder value as a serious matter.
The executive said of the lawsuit via CNBC, “I strongly believe it was a silly sideshow, regardless of how the judge ruled …. I don’t think the issue of returning cash to shareholders is silly — we’re seriously considering it.”
At Wednesday’s meeting, Cook said the company’s long term growth is a focus for Apple as well as producing top products. He also commented that the company is “working harder than ever” and “has some great stuff coming.”
Apple Inc. (NASDAQ:AAPL) said it is “committed” to bringing back its recently withdrawn shareholder proposal that had been opposed.
This proposal had been combined with numerous corporate-governance issues. With one, had it been passed, it would have required a shareholder vote prior to the company issuing preferred stock.
The Wall Street Journal reported that at the shareholder meeting, a Calpers representative said it had “great regret” the proposal had been taken away; it believed it could have passed with a vote. The pension fund had been a supporter of shareholders having a right to vote for the preferred shares and the proposal section on elections for directors.
One shareholder had also made the suggestion that in the future, Apple Inc. (NASDAQ:AAPL) should discuss corporate-governance issues separately to enable shareholders to cast individual votes for them.
New Corporate Headquarters in 2016
By 2016, Apple Inc. (NASDAQ:AAPL) will move into its new corporate headquarters.
Tim Cook said via CNBC, “We plan to bulldoze all the buildings on the new site, build one 2.8 million sq. foot building that will be the most collaborative work environment; I project that we will move in, in 2016.” He added, “Today, 80 percent of the site is covered in asphalt and concrete; when we’re finished only 20 percent will.
This comes on 2011 plans by former CEO Steve Jobs just prior to his death for a spaceship-like corporate campus. It has been presented to the Cupertino City Council.