Did Disney Share in Apple’s Jobs Reporting Duties? (AAPL, DIS)

By now, even the pygmies have heard that Steve Jobs is taking a medical leave of absence as CEO of Apple Inc. (NASDAQ: AAPL).  Where Apple goes from here is one issue dependent upon the market conditions. Yet, shares are at a two-year low.  But there is one question here that some may ask: Does Walt Disney Co. (NYSE: DIS) have any of the same responsibilities that Apple has in its disclosure over the health of Steve Jobs?

Steve Jobs has been on the board of directors at Disney since 2006.This was a result of the Disney acquisition of the mighty animationleader Pixar, where Steve Jobs was essentially the controlling holderof the company.  Jobs was an ever-present figure there for a longtime.  But in time that has been less and less of the case according to what we have seen and heard.

Pixar is now the more creative team of Disney.  Steve Jobs is less of a figure there than before.  But he is the largest shareholderas a result of Disney’s Pixar buyout.

Also, there is a clear distinction here between a company’s star CEOand having a board member and committee member with serious health concerns.  Despite all ofthe accusations and despite all of the turmoil we have seen in boardrooms over the last year, most board members are in oversight positions.  Sure, they help with many functions such as PR and reaching out to their friends and contacts when needed.

But independent members and quasi-independent members of the board ofdirectors are not running day-to- day operations.  They are notoverseeing the ground level animators.  They arenot deciding whether the superhero’s costume looks better in orange orblue.  And they are not in the company every single day

Steve Jobsdoes, or did, help oversee Disney and Pixar’s combined animationbusinesses with a seat on a "steering" committee.  Butthis is still said to be more of an advisory position.  Pixar’screative department is led by John Lasseter, who has presided over many blockbuster movies.

Disney most likely holds no responsibility or close to no responsibility here for the "reporting ofthe health of Steve Jobs."  Apple does, and Apple is already under fire for how it handled this issue or how it allowed Steve Jobs to handle this issue.  Unfortunately, a star-CEO has a fiduciary duty to shareholders to disclose relevant information. That includes personal health matters as well.  He is a director at Disney.  He is involved, and he isthe largest Disney shareholder.  But he is not the CEO there. 

Our take is that Disney has no exposure or very limited exposure here to this issue.

Jon C. Ogg
January 15, 2009