Steve Jobs' Health: Why It Matters

Actor Christopher Reeve is a good example. The horse riding accident that left him a quadriplegic was big news—and he remained a news media darling until his death. Why? In part because he played a hero. Superman is supposed to be invincible. But Christopher turned out to be quite human and as susceptible to injury as anyone.

Is Apple CEO Steve Jobs a hero? Well, he's certainly an icon, which perhaps is herolike enough. He's a figure unlike any other in the modern computing era. More importantly, Steve is to Apple as Christopher was to Superman: viewed as one and the same. Steve Jobs is Apple, as many people see him. Their fates are intertwined. Steve's health is viewed by many as affecting Apple's health.

How iconic is Steve Jobs? Microsoft co-founder and Chairman Bill Gates built a computing empire, putting a PC on every desktop. But it is Steve, not Bill, whom people look to for a kind of computing cultural guidance. Microsoft is a force that is part of culture. Apple is a cultural force. Its products set trends for design and standards for good taste. Apple products often define cool. Translucent was everywhere in 1999, following the design trend established by the Bondi Blue iMac.

How many cell phone manufacturers now imitate iPhone, particularly with touch or multitouch features? Sprint has the Samsung Instinct. HTC Touch Diamond is now selling through some European carriers. But touch isn't new to mobile devices. Palms and Treos have had touch screens for years. But Apple made touch chic, personal. Now everybody follows Apple.

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Bill Gates talks about the "magic of software." Steve is about making magic—products that delight people; the magic of good taste. Apple is a trendsetter. Steve Jobs is the guru.

There are reasons why for years dedicated Mac users were called "enthusiasts," "fanatics" or "zealots." I recall terms like the "Mac cult" or the "Mac faithful." Faithful to whom? Steve Jobs.

Now questions persist about his health. The faithful want to know about their icon, the hero of cool and of good taste. BusinessWeek and the New York Times both had major pieces about Steve's health this week. The faithful, the followers, aren't the only ones asking about Steve's health. Shareholders and potential investors are interested, too.

The questions started on June 9, when Steve gave the keynote at Apple's Worldwide Developer's conference. He looked mighty thin. Honestly, he looked gaunt to me sitting three rows back from the stage. Apple has yet to address his health, although there is a believable explanation given by others about the treatment for his cancer a few years back.

During Monday's third-quarter earnings call, one of the financial analysts apologetically asked the question that somebody had to. What's up with Steve's health?

Apple CFO Peter Oppenheimer gave a roundabout answer: "Steve loves Apple. He serves as the CEO at the pleasure of Apple's board and has no plans to leave Apple. Steve's health is a private matter."

But it's not. There are no private matters at public companies. Steve Jobs doesn't just serve as CEO at "the pleasure of Apple's board" of directors. He serves at the pleasure or displeasure of the shareholders. Restated: He serves shareholders, the real owners of Apple. Steve has obligations to them.

One obligation is to protect the share price. If Steve is sick, or his cancer has returned, Apple could protect the share price by withholding the information for fear of a massive stock sell-off. That's the problem with heroes. The people saved by the superheroes often treat them as servants. The people are not always appreciative. They think about their own interests first. For all that Apple and Steve have done for the shareholders, most will put first their own interests by dumping the stock.

Apple also can protect the share price through transparency, by disclosing the clear state of Steve's health. The president of the United States does this. He serves the American people. There aren't supposed to be private matters in public office. If the president becomes sick, then there must be a succession plan and transfer of power. The president's privacy stopped the day he entered the Oval Office, really after announcing his candidacy.

I believe that all CEOs of public companies—not just Steve Jobs—should be required to release annual health reports. Their fitness is hugely important to the shareholders, the real owners of the companies that the CEOs serve.

Disclosure is important for another reason: Steve's iconic status. He's not like most other CEOs. His healthiness is more important because of how he is identified as being the same as Apple.

Other people will disagree with me, and I expect some flaming in the comments. If Steve Jobs were a private person, I would easily concede that his health was a private matter. But he is chief executive of a public company and a leader people look to for guidance and inspiration. It's time for truth to be told about Steve's health and Apple's plans for his succession, whether they're executed shortly or many years from now.

[Please send your tips or rumors to watchtips at live.com].

Posted by Joe Wilcox on July 24, 2008 12:01 AM