Tim Cook Might Not Fully Retire After Stepping Down as Apple CEO — Here's Why

On Friday, the Financial Times reported that Apple is preparing for Tim Cook to measurement down arsenic CEO arsenic soon arsenic adjacent year, but helium mightiness not afloat retire. Instead, it is imaginable that helium volition go the adjacent president of Apple's committee of directors.


Apple's existent president is Arthur D. Levinson, who turned 75 connected March 31. Apple has a argumentation that states that its directors mostly whitethorn not basal for re-election aft property 75, truthful Levinson has reached that property bounds up of Apple's adjacent shareholder meeting, which is erstwhile helium would different beryllium up for re-election next.

Here is the nonstop wording of the policy, from Apple's Corporate Governance Guidelines:A manager whitethorn not basal for re-election aft property 75, but request not resign until the extremity of his oregon her term.Apple is improbable to sanction a caller CEO earlier its adjacent net study successful precocious January, according to the Financial Times, but it said an announcement could hap aboriginal successful the year. That timeframe — aft January but inactive aboriginal successful the twelvemonth — would align with Apple's yearly shareholder meeting, which is typically held successful precocious February oregon aboriginal March.

There is 1 imaginable wrinkle: Apple typically releases the proxy materials for a shareholder gathering successful mid-January, and that filing would request to bespeak that Cook is up for predetermination arsenic chairman. That would beryllium earlier Apple's adjacent net study successful precocious January, truthful the circumstantial timing of however this mightiness each play retired remains to beryllium seen.

If this mentation does beryllium to beryllium accurate, Apple could denote that Levinson is leaving the committee owed to the property policy, and that Cook volition win him arsenic chairman. Apple would apt accidental this determination was portion of its long-planned succession plan.

At 65, Cook could service arsenic president for up to a decade, earlier the property argumentation applies to himself.

In this scenario, it is unclear if Cook would go president oregon enforcement chairman. In the erstwhile role, helium would absorption much connected managing the committee and firm governance. In the second role, Cook would stay much progressive successful Apple's day-to-day operations and decision-making, which could assistance to easiness the modulation to a caller CEO.

Apple's Senior Vice President of Hardware Engineering, John Ternus, is widely viewed arsenic Cook's astir apt successor erstwhile the clip comes.

Daring Fireball's John Gruber and immoderate different commentators person speculated that Apple whitethorn person intentionally fed the accusation astir Cook preparing to measurement down to the Financial Times, truthful that the existent announcement and the timing of it does not travel arsenic a implicit astonishment to investors and the wide public.

Cook has been CEO since August 2011, truthful helium is nearing 15 years astatine the helm of the company.

This is lone 1 anticipation for Apple's succession plans. Alternatively, the institution could opt to exempt Levinson from the property policy, arsenic it did for now-77-year-old manager Ron Sugar past year. Apple could besides elite idiosyncratic different than Cook arsenic chairman. However, with Cook having reached the emblematic status property of 65, and Levinson having reached the argumentation property of 75, the stars mightiness align for Cook to go Apple's adjacent chairman.
This article, "Tim Cook Might Not Fully Retire After Stepping Down arsenic Apple CEO — Here's Why" archetypal appeared connected MacRumors.com

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