Shareholder Vote Shows Little Confidence In Michael Dell (DELL)
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Price: $396.34 +1.27%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.6%
EPS Growth %: +109.5%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.6%
EPS Growth %: +109.5%
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Dell Inc. (NASDAQ: DELL) founder Michael Dell was reelected to the computer maker's board this month, but the chief executive officer saw more than a quarter of investors votes withhold support from him showing displeasure with his actions at the company.
According to a regulatory filing on Tuesday from Dell, 25.1 percent of the votes, or 377.8 million of 1.5 billion votes, withheld support from the CEO and chairman at the company’s annual meeting on August 12.
Of the 11 directors that were reelected on Tuesday, Mr. Dell received the fewest votes in his favor.
Dell was once the largest vendor of personal computers, but now the company trails rivals Hewlett-Packard Co. (NYSE: HPQ) and Acer Inc. Under Mr. Dell, the company has conceded market share to its competitors rather than lower prices, which would further damage its margins.
Last month Dell settled with the Securities and Exchange Commission for charges of fraud by paying $100 million, while Mr. Dell agreed to pay $4 million in penalty fees as a part of the same charges, but the CEO did not admit any wrongdoing.
The SEC accused the computer manufacturer of not disclosing the full extent of regular payments from microprocessor maker Intel Corp. (NASDAQ: INTC) factored in to Dell’s overall financial results. The investigation uncovered emails from Mr. Dell that spoke how the company needed the rebates from Intel to meet analyst expectations each quarter.
Shares of Dell have fallen 13 percent in the last year, while the Nasdaq has risen 14 percent in that time. On Wednesday, shares of Dell are up 20 cents to $12.26 in midday market movement.
According to a regulatory filing on Tuesday from Dell, 25.1 percent of the votes, or 377.8 million of 1.5 billion votes, withheld support from the CEO and chairman at the company’s annual meeting on August 12.
Of the 11 directors that were reelected on Tuesday, Mr. Dell received the fewest votes in his favor.
Dell was once the largest vendor of personal computers, but now the company trails rivals Hewlett-Packard Co. (NYSE: HPQ) and Acer Inc. Under Mr. Dell, the company has conceded market share to its competitors rather than lower prices, which would further damage its margins.
Last month Dell settled with the Securities and Exchange Commission for charges of fraud by paying $100 million, while Mr. Dell agreed to pay $4 million in penalty fees as a part of the same charges, but the CEO did not admit any wrongdoing.
The SEC accused the computer manufacturer of not disclosing the full extent of regular payments from microprocessor maker Intel Corp. (NASDAQ: INTC) factored in to Dell’s overall financial results. The investigation uncovered emails from Mr. Dell that spoke how the company needed the rebates from Intel to meet analyst expectations each quarter.
Shares of Dell have fallen 13 percent in the last year, while the Nasdaq has risen 14 percent in that time. On Wednesday, shares of Dell are up 20 cents to $12.26 in midday market movement.
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