Apple Shareholders Reelect Board Amid Concerns About Jobs

Apple Inc. (AAPL) shareholders Wednesday reelected the entire board of directors, including Chief Executive Steve Jobs, whose absence from the annual shareholder meeting underscored the prospect of a leadership succession at the computer maker.

Shareholders also defeated proposals that would have given them a say on executive compensation, would have required Apple to disclose more about corporate political donations and its carbon footprint, and would have called for universal health care.

The meeting, at the company's Cupertino, Calif., headquarters, is notable because it is the first that Jobs, a co-founder of the company, has missed in a decade. In January, the pancreatic cancer survivor said he was taking a leave of absence to seek more complex treatment, raising the prospect of a change in leadership.

In addition to Jobs' absence, Google Inc. (GOOG) CEO and Apple board member Eric Schmidt wasn't at the meeting.

In midday trading Wednesday, Apple shares were up 1.5% at $91.62. Apple's shares have fallen by more than 50% since hitting their all-time high of $202.96 on Dec. 28, 2007.

So far, the board meeting has been uneventful and procedural. But shareholders will get an opportunity to ask questions of the board, marking the first time Apple investors have had to quiz board members about Jobs' health. The issue, along with succession talk, is expected to dominate the session.

On Jan. 5, Jobs disclosed in a letter posted on Apple's Web site that he was suffering from a "hormone imbalance" and that the remedy was "relatively simple and straightforward." The same day, the board expressed support for Jobs. But nine days later, Jobs announced he was seeking a more complex treatment that would require him to leave the company until June.

The Securities and Exchange Commission has been investigating whether the disclosures were made in a timely manner, according to The Wall Street Journal.

Despite the reports of an investigation, Apple's board, which includes former Vice President Al Gore, has remained silent since its Jan. 5 note. Board members have either declined to comment or failed to return requests for comment on the situation.

In Jobs' absence, Apple has pushed other executives, namely Chief Operating Officer Tim Cook and Senior Vice President Phil Schiller, as the public faces of the company. That's helped to somewhat soothe some investors worried about whether the company has the bench strength to move ahead without Jobs, though many remain anxious for information about his health.

"There are still some concerns about that," Shaw Wu, an analyst at Kaufman Brothers, said of Jobs' health status. "Many people see it as a private matter, but on the other hand, he's such an important part of the company."

Intuit Inc. (INTU) Chairman William Campbell, an Apple director since 1997, and Genentech Inc. (DNA) CEO Arthur Levinson, a board member since 2000, were chosen as co-lead directors. Also reelected were Jobs, a board member since 1997; Gore, a board member since 2003; J. Crew Group Inc. (JCG) Chief Executive Millard Drexler, a director since 1999; Avon Products Inc. (AVP) Chief Executive Andrea Jung, a director since 2008; Google's Schmidt, a director since 2006; and venture capitalist Jerome York, a member since 1997.

-By Ben Charny, Dow Jones Newswires; 415-765-8230; [e-mail]