Some Apple shareholders are turning up the heat on the company to publish its CEO succession plan now that Steve Jobs is on medical leave once again, but Apple is still not budging. The proposal for publishing a succession plan annually was backed by the Laborers' International Union of North America (LIUNA), and now the Institutional Shareholder Services (ISS) has given its support as well, both recommending that shareholders vote for it at the upcoming Apple shareholder meeting.
What LIUNA (and now ISS) want is for Apple to publish an annual report with a clear CEO succession plan. "A vote for the shareholder proposal to adopt a succession planning policy is warranted in light of the company’s limited disclosure regarding this issue and the market’s expression of concern over CEO succession at Apple," ISS said in its latest report, according to Bloomberg.
Apple announced last month that CEO Steve Jobs would be going on another medical leave—the third he has taken since he was diagnosed with pancreatic cancer in 2003. In his statement, sent to employees and issued to the press, Jobs said that COO Tim Cook would be responsible for day-to-day operations in his absence, and that he hoped to be "back as soon as I can."
Since Jobs' medical leave is currently indefinite, Apple watchers have been left wondering what the company's plan is in the event that Jobs cannot return. Rumors have circulated about Google's former CEO, Eric Schmidt, being asked to step in for Jobs, but Schmidt has refused to comment on his "private conversations." The idea is a little on the unconvincing side anyway, as Cook has proven himself to be a capable interim CEO and would likely be the company's first choice.
As pointed out by Bloomberg, Apple has already asked its shareholders to vote against the LIUNA proposal when the annual meeting occurs on February 23. The reasoning? Apple's board already has a succession plan in place for senior management, but wants to keep those talks confidential in order to avoid giving the competition a leg up. Apple also said it wants to avoid giving its executives a reason to look elsewhere "because it would identify who’s being considered for positions and how they are being evaluated."
Apple has never been one for transparency when it comes to Steve Jobs and its senior management, so the fact that it opposes the publication of a succession plan comes as no surprise. Still, with Jobs on his third medical leave from Apple, some shareholders are feeling more antsy than ever about placing all their trust in the Apple board. We'll see how the vote turns out in a few weeks, but Jobs' potential replacement is likely to remain a hot topic throughout 2011.
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See Also:
- Apple's Jobs Takes Medical Leave, Remains CEO
- Apple Crushes Earnings Amid Steve Jobs Health Concerns
- Jobs Maintains 'Grip' During Apple Medical Leave: WSJ
- Jobs Had Liver Transplant – WSJ.com
- When a CEO Coughs, Do Shareholders Catch a Cold?
- Apple's Earnings Are Healthy — But What About Jobs?
- The SEC Reportedly Investigates Apple's Candor About Jobs's Health ...
- Steve Jobs is Not — Repeat, Not — Dead
