A pre-eminent proxy advisory firm, Institutional Shareholder Services (ISS), has come down on the side of Apple Inc. (NASDAQ: AAPL) in its clash with activist investor Carl Icahn over an additional $50 billion share buyback Icahn is proposing. The company has already announced plans to return $100 billion to Apple shareholders through a combination of buybacks and dividend payments.

In a report published on Sunday, the New York Times cites the ISS report:

The board’s latitude should not be constricted by a shareholder resolution that would micromanage the company’s capital allocation process.

The ISS note also pointed out that the bulk of Apple’s cash is held overseas, and returning it to the United States would result in a massive tax obligation or force the company to borrow more money, thereby lowering its credit rating. The proxy firm also said that there is no evidence that Apple has been profligate in spending its cash hoard of $159 billion.

However, ISS noted, “Given the rate at which the percentage of offshore cash is growing, … a strategy which goes no further than returning excess domestic cash will soon become inadequate.” The proxy firm took Apple to task for not offering a longer term vision on how the company plans to use its rapidly increasing cash pile.

As of last October, Apple had earmarked $60 billion for share buybacks and $40 billion for other capital returns. There is about $37 billion remaining for buybacks and $30 billion in capital return following a quarterly dividend boost to $3.05.

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