Nightly Business Report Takes a Swipe at Apple’s Board (AAPL)

The Nightly Business Report on PBS took a swipe at Apple’s board AAPL on Wednesday night's program. The criticism seemed to center around Steve Job’s having too much control, and lack of a substantial, publicly detailed succession plan, if Steve Jobs were to pass away. Nell Minow, Co-Founder, of The Corporate Library said: “I`d say Apple is absolutely catastrophically a bad board. You couldn`t have a worse board than Apple. I mean as a consumer, love them, but as a shareholder, they`re a terrible board.” Anchor Tom Hudson asked: “Why do corporate governance experts think Apple`s board is rotten? They point to several reasons: the stock options backdating scandal in 2006. Apple admits Steve Jobs knew options given to him and others were backdated. Still, Apple said Jobs did not financially benefit. The Securities and Exchange Commission did not bring action against the company, citing Apple`s swift and extraordinary cooperation with the agency. Jobs` health -- in 2004, he was diagnosed with pancreatic cancer. In 2009 he suffered from a hormone imbalance, which forced him to take a six-month leave of absence. Later that year he had a liver transplant.” Jeffrey Sonnenfeld, from the Yale school of management, said this: “Their objective of keeping Steve Jobs` creativity alive and well is great. Having somebody with the title of CEO who goes off to the mountaintop and is gone for six months is a worrisome model.” Hudson: “Critics also say the Apple board has not said enough about the company after Jobs.” This Nightly Business Report piece did not seem to be particularly well focused. So where’s the smoking gun? They mention a backdating scandal that the SEC never prosecuted, to begin with. This Nightly Business Report piece did not seem to be particularly well focused. Yes, Apple's board should have more power to counter the overwhelming personality of Steve Jobs. So where’s the smoking gun? They mention a backdating scandal that the SEC never prosecuted, to begin with. Shareholders will probably not complain about the board unless the stock takes a dive. I think the crux of the problem is that American corporate boards practice lax oversight and cronyism in general. I previously wrote about this problem in an article entitled, Boards of Directors – 60 Ways to Screw Your Shareholders, here at Benzinga. http://www.benzinga.com/markets/company-news/management/122383/boards-of-directors-%E2%80%93-60-ways-to-screw-your-shareholders The article also reviews the excellent book about the subject called, Money For Nothing