Activists Take Aim at Apple

Similar proposals have garnered support from companies that advise shareholders. Securities laws don't provide a mechanism for shareholders to "provide ongoing feedback" to boards regarding the compensation plans they approve for executives, according to a report from shareholder advisory firm Egan-Jones.

Shareholders can only withhold their votes, which is "a blunt and insufficient instrument for registering dissatisfaction" with compensation plans and practices, the report concluded.

On its ballot, Apple and its board, which includes former Vice President Al Gore and Google (GOOG Quote) CEO Eric Schmidt, said the proposals are unnecessary and will hurt its ability to "attract and retain" top executive talent.

Apple's ballot also points out that its compensation committee is composed of independent directors. Board members are considered independent when they are not employees of the company and have no financial or personal ties to the executives whose compensation they oversee.

Companies in Apple's position have argued that labor unions interfere in compensation matters to gain leverage when negotiating employment contracts.

But this view overlooks the fiduciary responsibility of union pension funds to manage their members' retirement savings, says Rob Kellogg, research and policy director at Institutional Shareholder Services. This duty, he says, means taking an active interest in governance matters.

Both ISS and Egan-Jones recommended voting in favor of compensation and options proposals on Apple's proxy.