The Apple orchard is growing a little crowded with Help Wanted signs. Announcing the resignation of board member Delano Lewis, Apple Computer said Friday that four seats are vacant on its board of directors. The news comes as the computermaker tills the field for a new CEO and a new advertising agency to create, presumably, a new message - and as its former CEO prepares to tell the world just what's up at Apple's core.
From the outside, it looks a bit like a free-for-all in Cupertino, but the open field could give Apple a chance to remake itself. "Having a clean slate is probably better," said Daniel Kunstler, an analyst at JP Morgan Securities. "If the remaining board and management team manages to attract a strong CEO, that new CEO will probably attract strong board members."
Steve Jobs, Apple's co-founder, is apparently the closest thing the company has to a leader today, as the executive search firm Heidrick & Struggles tries to fill the CEO role. Jobs, who has repeatedly denied his interest in returning to the company throne, has been spending lots of time re-energizing top management in the wake of former CEO Gil Amelio's recent departure. He is also reported to be very involved in the search for a new ad agency.
The original call to check out new agencies was made by Amelio, who ordered layoffs of about a third of the company's work force and revamped the product line, while announcing nothing but losses during his 16-month tenure. Only time will tell if his attempt to restructure Apple will pay off.
But on Tuesday he's going to do his best to convince the Commonwealth Club of California that he was on target. As the luncheon speaker at a San Francisco meeting of the club, Amelio is scheduled to address some spicy questions - like "Could anyone have turned Apple around?" The club had asked Amelio to speak while he was still at Apple, but once he'd been ousted, it moved the lunch date forward and rewrote its questions to cash in on the public's fascination with Apple speculation.
When it comes to Apple, almost everyone is looking for a crystal ball, and the latest departure from the board has only heightened the intrigue. Jim Balderston, an analyst at Zona Research, admitted that the temptation to speculate is great. "Could there be a palace coup? Are board members getting the signal they should be leaving prior to the coming of the next CEO?
"They have no CEO, an increasing number of open seats on the board, and this is a company widely perceived as being in trouble," Balderston said. "I want to refrain from using the rats-on-a-sinking-ship metaphor, but I'm not sure you can get around that one in this situation."
Lewis, the president and CEO of National Public Radio, acknowledged the challenges facing Apple, while citing pressing demands at NPR as his reason for leaving the board. "I have every confidence that the board, executive management team, and employees will meet those challenges with confidence and vigor," he said in a statement.
"The board is actively looking for new members," said Apple spokeswoman Katie Cotton, who added that "for quite some time we've had seven members," rather than a full house of nine. (There's no requirement for the company to have the maximum number at any point in time.)
Kunstler was slightly optimistic about Apple's future - given its strong cash position and portfolio of salable assets. "As long as they have liquidity to keep their financial house in shape, they can buy the most precious thing around: time," he said.
