Shareholders vote current Qualcomm board back in, but with skepticism
Inside sources say that Qualcomm’s board of directors were voted back in today with only lukewarm support from shareholders.
Reuters reports that some directors were able to muster a majority of the votes for their position while others, including chief executive Steve Mollenkopf, only got above 40 percent. In an election where the candidates run uncontested, members should generally command a share of 80 percent or more as an indication of confidence.
The vote comes after Broadcom dissolved its bid to acquire the San Diego-based semiconductor company upon an executive order issued by President Donald Trump. Some investors are raising questions as to why Qualcomm voluntarily requested the Committee on Foreign Investments in the United States to investigate the bid. The CFIUS advised Trump on the bid after Broadcom moved up its reincorporation from Singapore to the United States by one month.
Shareholder advisory firm Institutional Shareholder Services has been encouraging shareholders to vote for Broadcom’s board nominees in protest, even as they would not be counted under Qualcomm’s rules.
Former executive chairman of the board Irwin Jacobs left the company, leaving 10 members on the board.
At its annual shareholders meeting today, one investor quizzed the company on if offshore funds could be brought home to bolster stock prices “up to $80.” CFO George Davis said that the company’s international holdings will be used to finance its $44 billion acquisition of NXP Semiconductors and that cost-cutting and revenue forecasts for 2019 would be able to push prices to the $80 level.
QCOM stock closed down nearly 3.5 percent to $53.66 today.