Thursday, March 25, 2010

Apple -- Succession Plans for Directors Badly Needed.

Apple (AAPL) experienced the sad loss of Jerome B York and now must find a new board member. This means time and cost to mount a search and then bring the new guy up to speed. In the mean time the board has a hole and shareholder interests are not well served.

Why not have a succession plan for directors and have one or two distinguished people sitting on the board as non voting but fully in the loop, attending meetings and experiencing the same information flow as the other directors.

Could go a long way to improve governance. Could go a long way to letting shareholders know who is coming up next. Could go a long way to stabilize boards of directors.

Just a thought.