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Two unions are pushing for Dell shareholders to withhold their votes for the company’s founder, Michael Dell, to remain as chairman of the board of directors.
According to Mac World, the move has come after Dell paid $100 million in settlement following an investigation by the US Securities and Exchange Commission in to accounting practices at the firm.
The unions – the AFL-CIO and the American Federation of State, County, and Municipal Employees – also allege that Mr. Dell received excessive executive compensation of £450 million between 2000 and 2009, while his company’s stock value dropped by 66 per cent in the same period.
“Based on the allegations in the SEC’s complaint against our Company and Michael Dell, we believe that shareholders would be better served by the removal of Michael Dell as the Chairman of our Company’s Board of Directors,” reads the union letter to shareholders, many of whom are union members.
“By voting to ‘WITHHOLD’ from Michael Dell, you can encourage the Board of Directors to appoint a new Chairman.”
Despite this, a Dell spokesman said that the board of directors had “unanimous support” for Michael Dell, and stated that the allegations regarding executive compensation were misleading.
“In fact, he has not received a bonus from the company for four years and hasn’t been granted stock or stock options for six years.”
