14 DAY TRIAL // Multiple sources are reporting that Apple shareholders are being urged, again, to vote in favor of a proposal that requires Apple to disclose its CEO succession plan.
Steve Jobs is known to have battled a rare form of pancreatic cancer which left him weak and extremely thin in appearance, fueling ongoing speculation that he hasn’t fully recovered from his illness.
Earlier this month, Apple CEO Steve Jobs announced that the company’s board of directors had granted him a medical leave of absence so he could focus on his health.
This marks the second time in two years Apple’s CEO is forced to temporarily step down to deal with health problems.
Mr. Jobs promised in his January 2011 letter that he would “continue as CEO and be involved in major strategic decisions for the company.”
Backing the original proposal by the Central Laborers’ Pension Fund are two advisory firms: the Institutional Shareholder Services (ISS), and LIUNA - the Laborers’ International Union of North America.
LIUNA issued an official report yesterday announcing that the shareholder proposal to require Apple to disclose a CEO succession plan had won the support of Institutional Shareholder Services, the country’s largest proxy voting service.
LIUNA said that support from ISS had the potential to sway the votes of large, institutional shareholders in favor of the Central Laborers’ Pension Fund’s proposal.
It added that the organization had supported similar proposals offered by LIUNA member pension funds in the past.
For example, CEO succession proposals made by LIUNA pension funds have been adopted by several Fortune 500 companies, including Hewlett-Packard, Verizon and American Express, the advisory firm said.
The LIUNA report then cites the ISS analysis of the proposal which originally noted that “All companies should have succession planning policies and succession plans in place, and boards should periodically review and update them.”
The ISS further reported in its analysis of the proposal that “[It] believes that shareholders would benefit by having a report on the company's succession plans disclosed annually.”
“Such a report would enable shareholders to judge the board on its readiness and willingness to meet the demands of succession planning based on the circumstances at that time,” ISS said.
All in all, everyone seems to agree that Apple needs to tell shareholders who is taking the handles at Apple once Steve Jobs becomes unable to carry out his CEO duties.
Everyone except Apple, that is.
The Cupertino giant is telling its shareholders to vote against the proposal at a scheduled annual meeting on February 23rd, as it believes that divulging such plans would give its rivals an unfair advantage.