Steve Jobs Resignation: The Importance of Succession Planning; More Computer CEOs Leaving In 2011
Steve Jobs, co-founder and long-time leader of tech-behemoth Apple Inc., announced his resignation yesterday evening, naming COO Tim Cook his replacement. Rumors of Jobs eventual resignation have been circulating since Jobs took a leave of absence in January for health reasons and Cook took over day-to-day functions at that time. Apple operations, therefore, will most likely not change, as the succession plan has been in place for some time. However, stocks were marked lower on Thursday on account of the news. Jobs’ resignation differs from departures from other technology giants, such as Bill Gates’ from Microsoft in 2006, in that Jobs is remaining with the company in leadership roles as Chairman of the Board, director and Apple employee, according to his statement. However, many tech firms, such as Microsoft, HP and Yahoo saw declines after their iconic leaders stepped down. Through July, 64 computer industry CEOs have left their posts, compared to 50 during the same period last year. What can investors and consumers expect with news of the resignation? How important is succession planning for a company’s overall health? What can employees expect during a management change?