CalPERS Criticizes Icahn Apple Push

Dec 16 2013 | 10:43am ET

The nation's largest public pension fund—and a long-time Apple Inc. investor—isn't impressed with Carl Icahn's plans for the company.

Anne Simpson, head of corporate governance at the California Public Employees' Retirement System, blasted Icahn's demands for a larger share buyback program, demands he is considering taking to the company's shareholders.

"We are uncomfortable with a raider coming into a company with a proposal to disgorge cash," Simpson told Bloomberg News. "Carl Icahn is a Johnny come lately."

Simpson said that CalPERS, which owns about half as many Apple shares as Icahn, supports Apple's currently plans to return $100 billions to shareholders via dividends and a $60 billion buyback program.

"We like what they're doing," Simpson said. "They have a significant program for returning money to shareholders."

"Carl Icahn is late to the party. This debate's already been had. I'm not sure what Carl Icahn's proposal adds."

Icahn said he was "quite confused" by Simpson's criticism.

"I don't understand what this had to do with the democracy of voting," Icahn said. "I guess if your family didn't come over on the Mayflower, then you don't have a right to vote."

Simpson also criticized Icahn's use of Twitter to discuss his discussions with Apple CEO Tim Cook, which have sometimes taken place over a meal.

"Sending Tweets from under the dinner table—this is unseemly," she said.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.