Newspapers and blogs have been on fire after Apple reported its earnings with speculation about the health of its chairman and CEO Steve Jobs. Is the pancreatic cancer he dealt with in 2003 back? Why is he so thin?
BloggingStocks' Peter Cohan wrote that "The Times quotes Charles R. Wolf, an analyst at Needham & Company, who suggested that without Jobs, Apple stock could easily lose a quarter of its value in an instant. I agree. And that's why I think it's time for Apple to formally disclose Jobs' condition to shareholders."
That makes perfect sense: Jobs' health is clearly material to Apple shareholders, and it would be good for the company to disclose, in the form of an 8-K, what exactly is going on. It's time to put the rumors to rest.
But here's the problem: How far do you take that? Should companies have to tell their shareholders everything about their top executives' personal lives that could impact their job performance?
This could get messy in a heartbeat. Imagine a proxy statement that, in addition to the usual report of the audit committee, also included an opinion from Dr. Phil on the state of the CEO's marriage, and whether his son's drug problems were depressing him and taking his time and focus away from the company's operations.
If you agree that companies should update shareholders on an important CEO's health, then it isn't such a stretch to suggest that other personal factors impacting job performance should be disclosed too. But who would want to be the CEO of a company where one's personal life is exposed in Perez Hilton-detail in SEC filings?
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Reader Comments (Page 1 of 1)
7-30-2008 @ 7:31PM
william lindblad said...
None - and it has precedent. Pres. Cleveland had a cancerous growth removed from the top of his mouth on the presidential yacht. This was while he was in office.
Woodrow Wilson (or his wife) ran the country from a sickbed.
FDR could not walk on his own.
IKE had all kinds of heart problems.
Secrets were kept because they would cause turmoil and speculation and this is no different in the business world. If Jobs became to ill to function, he would step down and so would anyone else. Keep in mind that he may have an illness - not mental illness.
7-30-2008 @ 9:21PM
Dave Exner said...
What happened to Steve Jobs? Did he choke on the bonus money they gave him?
CEO's are thieves and the most greedy people on Earth!
7-31-2008 @ 7:46AM
Beltway Greg said...
Did you hear? Sept. 27th is going to be a red letter day for Apple. Steve will simultaneously open each and every Apple Store around the globe jetting from one location to another and man the cash registers and Genius Bar. Next he's going to produce every Apple product and then make every corporate decision for 30 straight days. And, instead of swearing in a new president in Jan., Steve is going to become president of the United States. You know what that means, yup, another dip in the stock. The board is going on a late summer's holiday. How splendid. He really is an omnipotent god you know and I sleep under a poster of him every evening. I've even heard that Chuck Norris wears Steve Jobs pajamas. One thing I find odd , it seems that those who accuse others of being fanboys and whatnot have far greater man crushes on Steven than they do. (That's you Douggie, Zacster, and Prof. Pete) We understand though. Long may you reign Steven Jobs. BTW, if you need any blood, marrow or the random organ give me a call. Got do what I gotta do for the cause. I'll be the Universal Soldier or the universal donor. Whatever. Gotta go, need to touch my Touch.
Beltway Greg
7-31-2008 @ 1:19PM
Beltway Greg said...
Jim Henson passed away and the Muppets are still doing fine? Now that isn't as stupid a statement as it seems at first glance. With the proper succession plan any company can survive. In the mean time get yourself some Apple stock boys. The first report that they're stealing market share from RIMM will send this puppy to the moon.
BG.
7-31-2008 @ 5:20PM
Richard Behar said...
We are Capitol Clothing Corp., a privately owned children's clothing company based in Miami, Florida.
Naturally a private company needs not to disclose any personal information on the CEO, but a Public Company should disclose any personal health issues of the CEO because any illness may affect the performance of the Company and shareholders should be informed.
8-09-2008 @ 4:41PM
Logan Frederick said...
A precedent should be set that the management's health is relevant to shareholders before it should be disclosed. Jobs clearly has a history of health problems, so shareholders should ask for disclosure. The SEC shouldn't be mandating that the personal lives of people, and that's what executives are, be an open book.
Really, it's just the shareholders' call.