The Cupertino, Calif.-based iPhone and iPad-maker is urging investors to vote no on a resolution that would require it to develop succession plans by February 23. The proposal would be reviewed each year, and groom candidates to succeed a CEO if the chief executive had to step down.
Investors say they have a right to know what Apple will do about leadership at least three years before a CEO is replaced, so they can make healthy investment decisions and be assured that leadership will not fall through unexpectedly. Companies are already required to disclose information that could affect whether a person buys shares or not, but what information is material is determined by board directors. And when it comes to a CEO's health, usually information is only divulged when the medical situation is extremely dire.
Apple argued the resolution "would give our competitors an unfair advantage and would publicize our confidential objectives and plans."
The issue isn't unique to Apple. In May, Sara Lee Corp. CEO Brenda Barnes took a medical leave and investors complained about a lack of information about her condition. Barnes stepped down shortly after it was revealed a month later that she had suffered a stroke. AIG's board will get an update on CEO Robert Benmosche's medical leave next month. Benmosche has said he has cancer, but hasn't said what kind.
Jobs is a pancreatic cancer survivor, after revealing his diagnosis in 2004. He went on a six-month medical leave in 2009 and announced earlier this month he'd be taking another leave. Apple's number-two executive, Tim Cook, is in charge of the company while Jobs recovers.
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