ISS says Apple board should vote 'no' to Icahn plan

Apple shareholders should vote against a proposal by activist investor Carl Icahn for the tech giant to expand its stock repurchase, proxy advisory firm ISS said on Sunday.

"(The Apple board) has returned the bulk of its U.S.-generated cash to shareholders via aggressive stock buybacks and dividends payouts," ISS said in the report.

"In light of these good-faith efforts and its past stewardship, the board's latitude should not be constricted by a shareholder resolution that would micromanage the company's capital allocation process."

(Read more: Apple drops 5%on weak iPhone sales, revenue outlook )

Icahn has been pushing the tech giant to aggressively expand its stock repurchase and has criticized the board for not doing so. He has filed a resolution proposing Apple commit to not less than $50 billion of share buybacks.

The activist investor has been gradually building up shares in Apple and late last month picked up another $500 million.

"Mr. Icahn has no comment at this time, but plans to issue something before the market opens tomorrow [Monday]," a spokesperson for Ichan said in an email to CNBC.

Apple was not immediately available for comment.

- Additional reporting by Ryan Ruggiero

image: © CJ Sorg