Apple
Jobs, who in January turned over day-to-day operations to operating chief Tim Cook, should hand over the CEO job permanently when he returns later this month, said Michael Obuchowski, chief investment officer at First Empire Asset Management Inc. in Hauppauge, New York.
“For investors, it would be better if Steve doesnt return to be as hands-on as he was,” said Obuchowski. “He has created a good team, and investors would be comfortable with that team and having Steve in more of an advisory role.” His firm manages assets of about $40 million, with Apple shares accounting for 2 percent of most accounts.
Jobs, a cancer survivor, could take a new position, possibly as Apples chairman, letting him guide the company with less scrutiny of his health, Obuchowski said.
Apple hasnt disclosed the exact nature of Jobss medical condition. He said on Jan. 5 that he was suffering from a hormone imbalance, and announced nine days later that his health issues were more complex than he thought. Cook and a team of product and marketing executives have raised their profiles in Jobss absence, unveiling updated Macintosh computers and iPod media players. The company also is releasing a new iPhone today, generating buzz even though Jobs, 54, didnt introduce the device.
Strategic Decisions
Steve Dowling, a spokesman for Cupertino, California-based Apple, declined to be specific about the date of Jobss return or whether his role will change. He also wouldnt say how or if Apple will announce that Jobs is back at work. Apple said in January that Jobs would remain involved in “major strategic decisions” during his leave.
“We look forward to Steve returning at the end of June,” Dowling said. Jobs wasnt available to comment for this story, he said.
Apples directors, led by Intuit Inc. Chairman Bill Campbell and Genentech Inc. Chairman Arthur Levinson, either declined to comment or didnt respond to requests for comment.
Apple shares have outpaced the Standard & Poors 500 Indexs during Jobss leave by more than sixfold. The stock rose 30 cents to $135.88 yesterday in trading on the Nasdaq Stock Market.
“If you look at the performance of Apple over the last year from a fundamental point of view, its been terrific,” said David Pearl, who helps oversee $6 billion in assets, including Apple shares, at Epoch Investment Partners in New York. “Theyve proven the company can run without him being there day to day. No one lives forever, and you have to build the company with the talent to succeed the founders.”
Stock Fluctuations
Cook filled in when Jobs took a monthlong medical leave in August 2004 to recover from surgery to remove an islet cell neuroendocrine tumor. Apple said in January that it has a succession plan should Jobs decide to leave for any reason. The plan is confidential, the company said.
“Transparency in this area is critical,” said Charles Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware. “The transparency issues throughout his illnesses have raised concerns among investors.”
Developer Conference
Jobss weight loss last year sparked concerns that his health was deteriorating. In June 2008, he appeared at Apples developer conference looking thinner. The company said he was suffering from a “common bug” and then declined to comment further on his health, saying it was a private matter.
“I wish they would take the time to be a little more communicative,” said Ryan Jacob, head of the Jacob Internet Fund in Los Angeles, which owned 17,000 Apple shares as of March.
Jobs co-founded Apple in 1976 with Steve Wozniak. He was fired by the board after a management dispute in 1985 and then returned to lead the company in 1997. Under Jobss tenure, Apples sales have surged to more than $30 billion a year. The stock has risen to more than $135 from $3.42 in July 1997.
Its unclear what role Apples board had in managing Jobss health disclosures, Elson said. In addition to Jobs, Campbell and Levinson, Apples directors include former U.S. Vice President Al Gore, Google Inc. CEO Eric Schmidt, J. Crew Group Inc. CEO Millard “Mickey” Drexler, Avon Products Inc. CEO Andrea Jung and former International Business Machines Corp. finance chief Jerome York.