What Does Apple's 'Proxy-Access' Program Mean?

Apple Inc. AAPL shares are jumping 1.13 percent to $108.40 on Wednesday morning's trading session, as the technology giant recently granted its proxy access program to shareholders, giving them more control and the ability to nominate new board members. Apple's return on investment is currently at 28.30 percent. On Tuesday, Apple announced the corporate bylaws, which afford a long-term shareholder or a group of shareholders with sufficient standing, to nominate a representative to the technology company's board of directors, a system known as "proxy access." The company said in a securities filing that the amended bylaws were adopted by its board on Monday. In Apple's annual meeting held in March, there was a shareholder proposal asking the board to adopt proxy access that only received 39 percent support. So what does allowing "proxy access" mean for investors? Allowing investors the ability to leverage Apple's "proxy access" program, would mean that either a single shareholder or group of shareholders who hold 3 percent of the company's shares for up to three years, is able to nominate up to 20 percent of Apple's board of directors. For investors, Apple's shareholders may be better poised to be influencers and have an impact on the company's strategy, as the proxy access program allows for permission to list competing board candidates on corporate ballots. Apple currently has a total of eight board members. 2015 has been a turbulent year for Apple. The company's shares closed Tuesday at $107.23. Apple's monthly performance stands at -10.12 percent while its year to date performance is -1.20 percent.