Apple and Google: Faith and Heresy

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Apple: The Scandal That Won't Quit

Apple's shareholder meeting was a bit of a contrast. One man who spoke at Google said he attended both. He complained that the security at Apple was "worse than at the airport" and that his pocket knife had been confiscated at Apple's gathering. (He held it up at Google's in praise of the more relaxed security.) He declared himself "totally unimpressed" with Jobs, but happy with Schmidt's willingness to share his thoughts on strategy and initiatives.

The Apple faithful turned out in force, with some of the most extensive reporting from specialists like those at MacWorld. There were critics, too, however. Most of the sharpest attacks came from shareholders concerned about the options grants to Jobs and other executives, a compensation issue that has come under scrutiny in recent months. "The stock options backdating scandal that just won't go away" is how one writer described it at the Apple blog.

Jobs also faced an unwanted shareholder proposal. The Amalgamated Bank's LongView Collective Investment Fund joined with the Connecticut Retirement Plans & Trust Fund to propose much tighter restrictions on how Apple awards stock options to its top executives. Because the company said it had found "irregularities" in how its options were doled out in the past, the shareholders asked that the date of such awards be designated in advance for all future awards.

Shareholders Vote

Plenty of bloggers weighed in in favor of the proposal. At MacUser, one person said the initiative seemed like a good idea "if not to curb any future hint of impropriety than [sic] at least for the positive image."

Apple, however, recommended that shareholders reject the initiative. The company said it was unnecessary because it hasn't granted options to senior executives for several years and because it would hamper the company's ability to attract and retain key people. Apple said the proposal had been voted down.