CUPERTINO, Calif. ( TheStreet) -- With Steve Jobs out on his third medical leave, Apple's (AAPL - Get Report) succession plan will be a key issue at the company's annual shareholders' meeting on Wednesday.
Last month, in a regulatory filing, Apple confirmed that shareholders will vote on a proposal for amending the company's corporate governance guidelines around succession planning. The shareholder proposal, it said, would require the company to "adopt and disclose" a written CEO succession planning policy.
|Apple's succession plan is set to be a key talking point at the company's shareholder meeting.|
Apple explained that the Central Laborers' Pension Fund, which owns more than 11,000 of the company's shares, intends to submit the proposal for a "detailed" plan on Wednesday. This would require Apple to begin non-emergency succession planning at least 3 years before an expected transition, and also maintain an annually reviewed emergency succession plan. The Fund is also calling on the Apple board to identify and develop internal candidates, as well as producing an annual report to shareholders on its plan.
Apple, according to the Fund, should develop criteria for the CEO position that will reflect its business strategy and use a formal assessment process to evaluate candidates.Apple's board, however, will recommend that shareholders vote against the proposal, claiming that it would publicize the tech bellwether's confidential objectives and plans. "Giving competitors access to this information is not in the best interest of the company or its shareholders," it said, adding that it already has an annual review of succession planning for senior management in place. "