There’s been much speculation lately that Apple chief Tim Cook, now 65, will step down next year.
Cook would be hard to replace, boasting a record that is mathematically intimidating. In the 14 years since he took over from Steve Jobs, Cook has helped add roughly $3.6 trillion (€3.1 trillion) to Apple’s market value. That’s the equivalent of $8,189 a second, $29.48 million an hour, over $707 million a day, or $21.58 billion a month, notes Ritholtz Wealth Management.
Few corporate records come close, and the scale of Cook’s achievement makes Apple’s succession process a delicate one. Apple likes to keep things in house and the favourite, hardware chief John Ternus, fits the firm’s instincts.
If so, shareholders can take some comfort: recent Yale research suggests corporate insiders consistently fare better than outsiders in the top job. They know the culture, the pitfalls and the politics.
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However, separate research notes a snag: insiders who follow long-running CEOs – those who spend a decade or more in the top job – usually struggle to match their predecessors’ returns relative to the wider market.
That aside, the challenges ahead are very different from the ones Cook mastered. The iPhone era is mature, AI is threatening to reshape the foundations of the industry, and rivals are experimenting with devices that might supplant the smartphone itself. Additionally, Apple isn’t cheap – it trades on 33 times estimated earnings, compared to just 13 in 2011.
That enormous valuation surge makes for a flattering comparison for Cook, and an unforgiving one for whoever follows him.
[ Apple intensifies succession planning for CEO Tim CookOpens in new window ]
