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. "[The proposal] attempts to micro-manage and constrain the actions of the Board," said Apple in the filing. "In practice, the Board and the management of the company are best equipped to carry out succession planning, as well as to handle day-to-day hiring, promotion and termination decisions." International Business Times, however, reports that Institutional Shareholder Services, an influential advisory firm, has come out in favor of the Fund's proposal. Apple co-founder Steve Jobs is widely credited with saving the company during the 1990s and has played a pivotal role in the development of category-leading products like the iPod, iPhone and iPad. Last month, however, the iconic Apple chief announced another leave of absence for unspecified medical reasons. In Jobs' absence, Apple COO Tim Cook will handle the company's day-to-day running.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV