LIUNA - the Laborers' International Union of North America - issued a news release yesterday asking Apple to disclose certain information about its CEO succession plan. This release comes soon after Apple’s CEO Steve Jobs announced his third medical leave in seven years and references a previously submitted shareholder proposal on the topic due to be voted on at Apple’s shareholder meeting on February 23rd and which Apple opposes.
Set against the backdrop of Job’s continuing health issues, the situation highlights the increasing concern that shareholders have regarding public company CEO succession practices as examined in our recent report for the Conference Board.
Examining the impact of SEC guidance changes on CEO succession planning
It’s instructive to read both LIUNA’s proposal as well as Apple’s rational for non-disclosure. Apple is resisting disclosure of confidential information that LIUNA is not asking for. LIUNA simply asks for board formal confirmation that a plan – and certain key elements – are in place, not for plan details. The result – a disruptive and now contentious proxy proposal that really could have been avoided.
So far about 20 companies – including Whole Foods and Wells Fargo have adopted LIUNA’s proposals on succession planning.
Read:
LIUNA’s shareholder proposal (see page 41 of meeting notice)
Read an analysis from Fast Company, including both sides’ rationale.
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