Don't Be Surprised If Apple's CFO Announces His Retirement At The Shareholder Meeting

Feb 27 2014, 2:12pm CST | by

Apple is holding its shareholder meeting on Friday, February 28. I’m expecting that it will mainly consist of the typical non-exciting business review with nothing important being announced. However, it would not surprise me if Peter Oppenheimer’s retirement is announced since he has been CFO since June 2004. (Note that my family and I own Apple shares and have sold put options, a bullish trade).

While in many ways a CFO leaving is important I believe Apple has been laying the groundwork for a transition. Prior to the previous two earnings conference calls Gary Wipfler, Apple’s Treasurer, was usually the only other executive besides Oppenheimer and Tim Cook, Apple’s CEO, who were on the calls.

Starting with the October 2013 call Luca Maestri, Apple’s Corporate Controller, has been on the calls and for the January 2014 conference call he handled questions about operating expenses and margins. Maestri joined Apple in February 2013 after being Xerox’s CFO and as a side note since then Apple has become much more aggressive with its stock buyback program.

Oppenheimer joined Apple in 1996, became its CFO in June 2004 and is 51 years old. Fiscal 2005 was Oppenheimer’s first full year in the job and the company generated $13.9 billion in revenue and $1.65 billion in operating income. In fiscal 2013 these had increased to $171 billion (up 12.3x) and $49 billion (up 29.7x), respectively. Overall he has done a very good job growing the company and given the time commitments after ten years it would not surprise me to see him leave sometime this year and possibly at the shareholder meeting.

While Oppenheimer probably doesn’t need any more Apple stock to vest his September 2010 award for 100,000 shares fully vests in September while his November 2011 award for 75,000 shares fully vests in March 2016. It could be that he waits until September or that he stays on in an advisory role until then to help with the transition to receive the 100,000 shares or almost $53 million.

One indication for a CFO change that we don’t see is if Maestri has been meeting with institutional investors over the past six months. If he has been handling more of the chores that Oppenheimer would have done analysts and PMs probably won’t be fazed by Maestri taking over as long as he is viewed as being up to the task.

Follow me on Twitter @sandhillinsight. You can find my other Forbes posts here.

Source: Forbes Apple

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

TSMC’s 20-Nanometer A8 Chip Applied in the iPhone 6 and iPhone 6 Plus
TSMC’s 20-Nanometer A8 Chip Applied in the iPhone 6 and iPhone 6 Plus
Apple disengages Samsung from producing the new A8 processor
 
 
Apple Launches the iPhone 6 and iPhone 6 Plus in US and Canada
Apple Launches the iPhone 6 and iPhone 6 Plus in US and Canada
The customers formed huge queues to collect the new smartphones
 
 
Tim Cook Surprises the iPhone 6 Purchasers at Apple’s Palo Alto Store
Tim Cook Surprises the iPhone 6 Purchasers at Apple’s Palo Alto Store
Tim Cook not only took selfies but also made fun with the Apple customers
 
 
Childless couples too enjoy family meals
New York, Sep 19 (IANS) Couples without kids in the house are just as likely as adults living with young children or adolescents to eat family meals at home on most days of the week, says a US-based study.
 
 
 

Latest from the Network

Italian Serie A standings
Rome, Sep 22 (IANS) Following are the Italian Serie A standings after matches Sunday (tabulated under games played, won, drawn, lost, goals for, goals against, points), according to Xinhua. 1. Roma 3 3 0 0 5...
Read more on Sport Balla
 
Asian Games: Nair fails to qualify for 50m backstroke final
Incheon, Sep 22 (IANS) Indian swimmer Prathapan Nair Monday failed to reach the final of the 50-metre backstroke competition in the 17th Asian Games at the Park Tae-hwan Aquatics Centre here. Competing in heat 3 of...
Read more on Sport Balla
 
NASA spacecraft enters Mars' orbit to explore atmosphere
Washington, Sep 22 (IANS) After 10-month journey of 442 million mile, NASA's Mars Atmosphere and Volatile Evolution (MAVEN) mission entered into Mars orbit, the US space agency has said. After a 33-minute engine...
Read more on Business Balla
 
Asian Games: Chinese team stripped of gold, Ayonika in final
Incheon, Sep 22 (IANS) India Monday finished sixth in the women's 10-metre air rifle event that saw the Chinese team being stripped of the world record and the gold medal after the disqualification of one of its...
Read more on Sport Balla
 
English Premier League standings
London, Sep 22 (IANS) Following are the English Premier League standings after Sunday's matches (tabulated under matches played, won, drawn, lost, goals for, goals against, points), according to Xinhua. 1. Chelsea...
Read more on Sport Balla
 
Jennifer Connelly shed 25 for husband's 'Shelter'
Los Angeles, Sep 22 (IANS) Actress Jennifer Connelly lost 25 pounds to play a homeless woman in her husband Paul Bettany's directorial debut "Shelter". The "Noah" star not only researched to look convincing as Hannah...
Read more on Celebrity Balla
 
China stripped of world record after shooter's disqualification
Incheon, Sep 22 (IANS) The Chinese women's shooting team Monday was stripped of the world record and the gold medal in the 10-meter air rifle event after the disqualification of one of its shooters here in the 17th...
Read more on Sport Balla
 
Thousands join climate change march in New York
New York, Sep 22 (IANS/EFE) New York City Sunday was the scene of a huge and colourful demonstration against climate change with more than 300,000 people turning out as part of an international initiative to raise...
Read more on Politics Balla
 
Yemeni government, Houthi rebels sign truce deal
Sana'a, Sep 22 (IANS) The Yemeni government and Houthi rebels signed a ceasefire deal late Sunday after days of deadly clashes in the capital Sanaa, an official said. The two sides agreed to cease fire in Sanaa...
Read more on Politics Balla
 
US bombs IS positions in Iraq's Sinjar region
Baghdad, Sep 22 (IANS/EFE) US combat aircraft Sunday bombarded positions of the Islamic State (IS) Sunni extremist group in the Sinjar region of Iraq's Nineveh province, Kurdish sources said. A Kurdish leader of the...
Read more on Politics Balla