Apple and a Short Sighted Approach to Governance (Part 2)

Despite some complaints about Apple's system of governance, it in fact has in place relatively traditional Corporate Governance Guidelines.  Moreover, Apple instituted an advisory vote on executive pay ("say on pay") last year before it was legally required.

Nonetheless, the resistance to the majority vote provision sends a message of indifference to shareholders.  It is a strategy that in the short term will work.  The Calpers proposal for majority vote will likely fail in February. 

But it is a bad strategy for the long term.  There will come a time when the Company will go through more difficult economic tribulations.  After all, despite the current streak of successes, there have been some noticeable failures in the past.  The Lisa for one, the Newton for another. 

When that moment comes, Apple will benefit from any good will engendered among its long term shareholders.  Adopting a majority vote provision now will make sure that the good will is there when Apple needs it.