You are talking about if the company goes bankrupt, that is the way it works. Most of the time preferred shares is just a loan to the company with a dividend, but the preferred shareholders do get paid off first before the common shares if the company goes bankrupt, if there is anything left after the preferred gets paid the common shares shares in that money. They are also at times issue convertabale, ccumlated, preferred stock. Just 2 cents worth. THE GOOD CHICKEN
From a historical perspective you are correct that once the stock settles into the 90-100 dollar range a split is forthcoming. But keep in mind that this ceo has never had that opportunity.
Since he has focused on stock buybacks during his tenure to boost earnings per share (a critical metric for his bonus), I doubt he will allow a split. Having already spent 13 billion dollars on the share buybacks, he would have to keep spending this way rather than grow the business.
Maybe I'm wrong, but when a company buys back shares, doesn't that indicate a split is in the works? They are accumulating shares to use for the split. That way they don't have to issue "new" shares. Also, @ dividend time, not as much cash leaves the company coffers.