Technovia: Steve Jobs’ health: How much should Apple reveal?

If a senior executive has a serious health issue, one that may affect his ability to maximise shareholder value, his duty is to report it to the board, in as full and frank a way as possible.

At that point, the board – and not the executive – has to decide what, if any, information it needs to relay to shareholders. While all boards will naturally be sensitive to the situation the executive finds himself in, they must solely consider the interests of shareholders.

This can lead to conflict with the executive. The exec, understandably, might want nothing to come out at all. The board might want to issue a more detailed statement. But whatever happens, the board must decide, and if the executive disagrees with the board he either has to go along with it, or resign.

Public statements

The key thing is that any statement on the health of senior executives must be approved by the board, and not under any circumstances, solely be left to the discretion of the exec or any member of his team. If the board allows statements to be made on an issue like this without its approval, it is failing in its duty to represent the interests of the shareholders, and allowing the executives interests to come first.

The most important thing in any board statement is that it must be true, and give shareholders an honest appraisal of how the illness will affect their company. It does NOT have to include full details of the condition.

via Technovia: Steve Jobs’ health: How much should Apple reveal?.

Ian just nails this one cold. Go read it; I agree with every word.

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