Apple succession call nixed

WEALTH PROTECTION

Tim Cook takes centre stage but Steve Jobs still a focus

CUPERTINO: Apple Inc shareholders rejected demands that the company disclose a succession plan for ailing chief Steve Jobs, and the company kept mum on how many had backed that proposal.

The reluctance to reveal details of the vote on a proposal by the Central Labourers' Pension Fund raised speculation that a sizeable contingent of shareholders may have supported it, and prompted an affiliated group to push for more disclosure.

“It appears likely that a large number of long term, institutional shareholders voted in its favor,” the Labourers' International Union of North America said in a statement following the meeting.

Steve Jobs ... on indefinite medical leave — Reuters
The fate of Apple, among the world's most powerful technology companies, is tied to how the iPhone and iPad maker handles the eventual departure of its iconic cofounder and leader.

Jobs in January took a third medical leave for unknown reasons, with many not expecting him to return to lead the company he founded in 1976.

But, in a rare show of activism for a group of investors often content with Apple's sizzling growth and lofty share price, shareholders approved a proposal giving them a bigger say in appointing directors against the company's recommendation they reject the proposal. About 74% of votes cast favoured a proposal by Calpers that unopposed candidates for the company's board receive a majority of votes to win election, according to the fund.

The vote provided one of the few moments of drama at an event not attended by Jobs, who is out on indefinite medical leave.

Tim Cook, Jobs' top lieutenant, took the spotlight instead. Clad casually in jeans and a sweater, he appeared very much in command and deftly fielded questions on topics from Apple's US$60bil cash pile to growing competition from the likes of Google Inc in mobile and revenue-sharing on the iPad.

Cook presented a predictably rosy snapshot of Apple and its fortunes, noting opportunities in smartphone, tablet and PC markets and the untapped potential among business customers.

Apple shares ended 1.2% higher at US$342.62 on Nasdaq yesterday.

Calpers, the largest US pension fund, is calling on 58 companies to adopt majority rather than plurality voting which allows unopposed directors to be elected easily. The US$226bil fund painted Wednesday's result as a victory for transparency and investor interests.

“It was very important that shareowners spoke, and spoke with conviction,” Calpers senior portfolio manager Anne Simpson told Reuters after the vote. “The message was loud and clear.”

Even with Jobs sidelined, shareholders voted down a proposal to outline a plan for who will succeed the visionary chief. And not one shareholder asked about Jobs or his health, in an apparent sign of their growing confidence in the executive bench.

“I'm very impressed by Tim Cook,” said Kirk DeBernardi, who has owned Apple shares for nearly a decade. “Shareholders come in with a certain amount of respect for Steve Jobs, that's why they don't come in and batter management with questions.”

Influential investor advisory firm Institutional Shareholder Services had thrown its weight behind a shareholder proposal to force Apple to disclose a succession plan.

“At least in the near term investors have nothing to gripe about. Despite overhang about the succession plan, it's performed in line with the market,” said Rodman & Renshaw analyst Ashok Kumar. “If the stock underperformed, then I think institutions can force the hand of management or the board, but in this case ... they have very little bargaining power.”

Some investors have urged the company to make better use of its cash, whether via buybacks or dividends. - Reuters