35% of Companies Have a CEO Succession Plan; Apple Maintains Stance on Disclosure

Amid pressure from advisory firms to have Apple disclose its existing CEO succession plan, a recent survey has found that a small percent of companies have one.

According to a December survey of 1,318 executives by Korn/Ferry International, a mere 35% of companies have a CEO succession plan, the San Francisco Chronicle reports.

The news comes high on the heels of Steve Jobs’ January announcement in which he revealed that he had persuaded Apple’s board of directors to grant him a second medical leave of absence to focus on health problems.

Apple’s CEO is known to have undergone a liver transplant as a result of his battle with cancer years ago. At his last keynote presentation, Jobs was still visibly thin in appearance, fueling speculation that his cancer may have returned.

Several influential groups are now pushing Apple investors to vote in favor of a proposal that requires the company’s executives to disclose their CEO succession plan, should Mr. Jobs not be able to continue his duties at Apple.

The survey by Korn/Ferry International found that 98 percent of companies believe a CEO succession plan is important for their corporate governance.

However, only 35 percent of companies have made preparations for the potential departure of their chief executive officer, the poll found.

"Given the number of abrupt, high profile executive departures this year, it's surprising that more companies are not acting with greater urgency to put a CEO succession plan in place," said Joe Griesedieck, vice chairman and managing director of Korn/Ferry Board & CEO Services Practice.

"In today's environment, succession planning should be a part of any company's standard approach to governance," Griesedieck added.

The original proposal for disclosing a CEO succession plan was submitted by the Central Laborers’ Pension Fund.

Two advisory firms - the Institutional Shareholder Services (ISS), and LIUNA - the Laborers’ International Union of North America - are now backing the proposal, encouraging Apple shareholders to vote for its approval at a scheduled investor meeting later this month.

Apple, which indeed has a “comprehensive succession plan,” strongly believes that divulging it would give its rivals an “unfair advantage,” according to its 2011 Proxy Statement filed with the U.S. Securities and Exchange Commission.

In fact, the Cupertino giant is reportedly telling its shareholders to vote against the proposal at the annual shareholders meeting.

Simply put, Apple won’t barge. But the shareholders will have a say at their meeting, therefore Apple may be hard pressed to act against its will.