Apple Inc. (NASDAQ:AAPL)’s CEO Tim Cook received a letter from activist investor Carl Icahn, earlier this month, which stated that the company is currently trading at half its potential and more share buybacks would help growth of the company. Apple Inc. (NASDAQ:AAPL) replied through its plan for buybacks in future. Meanwhile five time presidential candidate, Ralph Nader was building a shareholder-activism group, through which Nader has sent a letter to Cook asking to consider increasing labor wages, instead of satisfying shareholders by buying back stocks. This letter was directly opposite to Icahn’s suggestion to Apple Inc. (NASDAQ:AAPL). A ‘MoneyBeat’ article explained in detail about Nader’s letter to Cook.
“If instead of buying back stock, Apple had used its excess $130 billion to endow a foundation to achieve these reforms, it would have paid out — at a conservative five percent interest — $6.5 billion annually, enough to double wages and ensure a 40-hour workweek for hundreds of thousands of iPhone workers, while leaving a $1.1 billion surplus as an annual budget for ensuring top-notch health, safety and environmental standards at Apple factories,” Nader was quoted as writing in his letter to Cook.
Nader insisted tha