Sam OliverA December survey of 1,318 executives by Korn/Ferry International, as noted by the San Francisco Chronicle, found that 98 percent believe a CEO succession plan is an important part of corporate governance. But the poll found only 35 percent of companies have planned for the departure of their CEO.
"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."
In January, it was revealed that a group of shareholders is attempting to force Apple to disclose a written CEO succession policy. The proposal came to light in the company's 2011 Proxy Statement filed with the U.S. Securities and Exchange Commission.
Apple opposes the proposal, but has noted that the company maintains a confidential "comprehensive succession plan." The board of directors of the Cupertino, Calif., company views the publishing of the plan as a move that would give Apple's competitors an "unfair advantage."
Talk of Apple's succession plan picked up once again in January, when Apple announced that its chief executive, Steve Jobs, would take another medical leave of absence from the company. Jobs said in a statement that he will remain CEO and be involved in all major strategic decisions, but said he must leave his day-to-day role to focus on his health.
Overseeing the company's daily operations is Chief Operating Officer Tim Cook, who previously took over for Jobs in another medical leave of absence in 2009. Jobs eventually returned to work in June of 2009 after he received a liver transplant.
The investor proposal to disclose Apple's CEO succession plan will be in the hands of shareholders at the company's annual meeting on Feb. 23. Though Apple has recommended that shareholders vote against it, the plan did recently receive support from influential advisory firm Institutional Shareholder Services.
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92 Comments
Shareholders are not necessarily equipped with the ability to run a tech company like apple, they should leave that up to the people credited with moving the company forward. I mean all shareholders care about is making a profit and not so much about the company right?
I own a few Apple shares and I don't believe that the succession plan should be made public. That's like publicizing the battle plan before going into battle. I will be voting against the proposal.
All this fuss over Apple's future. What about the rest of the tech sector? The number of tech companies that don't have any type of plan except copy Apple is alarming. I guess their shares should drop every time SJ is absent too ... where the heck are their next products going come from without him?
I will vote against this proposal.
Already voted against the proposal. I urge all shareholders to do the same.
These shareholders want to be assured that the successor to Steve Jobs is also Steve Jobs. And when this successor is (inevitably) found to be something less than Steve Jobs, they want to complain.
This solves absolutely nothing, of course, but apparently it makes them feel better.