Carl Icahn stepped up his demand for Apple Inc. (NASDAQ:AAPL) to increase its shares buyback program.
The activist investor revealed to TIME magazine that he filed a shareholder proposal with Apple Inc. (NASDAQ:AAPL) last September 26, three days prior to the deadline for measures that will be voted on during the next annual meeting of the company.
Icahn also tweeted regarding his proposal to the tech giant today. His tweet reads, “Gave $AAPL notice we’ll be making a precatory proposal to call for vote to increase buyback program, although not at $150 billion level.”
According to Time magazine, a precatory proposal is not binding to the management of Apple Inc. (NASDAQ:AAPL) even if a majority of its shareholders approved the proposed share buyback program. It is generally used by shareholders for resolutions, even those who have conflicts with management.
Proposal not an indictment of Cook
Icahn said his proposal is not an indictment for Apple’s CEO Tim Cook or the management of the company. He said, “I think he’s good whether he does what I want or not.”
Spokesperson Steve Dowling confirmed that Apple Inc. (NASDAQ:AAPL) received a precatory proposal from Icahn. According to him, “Earlier this year we more than doubled our capital return program to $100 billion, including the largest share repurchase authorization in history. As part of our regular review process, we are once again actively seeking our shareholders’ input on our program.”
Dowling added, “As we said in October, the management team and our board are engaged in an ongoing discussion about it which is thoughtful and deliberate. We will announce any changes to our current program in the first part of calendar 2014.”
Icahn had been encouraging Apple Inc. (NASDAQ:AAPL) to implement a $150 billion share buyback as soon as possible. The activist investor met a few times with Cook regarding his demand. Icahn stockholding in the tech giant is worth $2.5 billion.