Investor Carl Icahn – he of the activist investor bent – has filed paperwork to ask Apple shareholders to recommend a $50 billion share repurchase to Apple’s board.
The request is what’s called a precatory proposal, meaning even if a majority of shares vote in favor, it would not be binding on Apple’s management. In an interview withTime, Icahn said he believes CEO Tim Cook and Apple’s management team are doing a good job, but he believes the company should be spending more of its capital on its own shares.
Icahn doesn’t see his proposal as an indictment of Apple, or its CEO Tim Cook. “Tim Cook is doing a good job with the business,” Icahn told TIME. “I think he’s good whether he does what I want or not.” However, referring to Apple’s huge stockpile of cash, he said, “Apple is not a bank.”
iCahn can withdraw his proposal before the shareholder’s meeting if he decides not to press the issue. If it does go to vote, Apple would likely recommend investors vote against the non-binding proposal.
iCahn first disclosed his position in Apple back in August, and as he’s steadily increased his stake, he has been increasing his pressure to get the company to increase its buyback.
