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Jobs CEO of Decade Says Fortune: Give Me a Break

By Erik Sherman | Nov 6, 2009

I can understand why people on balance admire Steve Jobs as a CEO. I can understand why Fortune might want to feature Jobs and Apple (AAPL) as a winning combination to feature. But CEO of the entire decade? Oh, please. To heap adulation upon the person of Jobs is to be taken with dazzle and to forget a few issues of substance:

  • Let’s start with the stock. Marvelous run-up. As Fortune notes, if you bought $1,000 in stock on December 30, 1999, it would have been worth $7515 as of now. But about a year before it would have been higher — and in January of 2009, about half as much. Historically, there have been some big ups and downs. What will it be worth six months from now? Nobody knows.
  • Stock price is fine, but how about handling tangible assets? If you look at the return on cash calculated by Tim Beyers at the Motley Fool, Apple’s return on cash equivalents is practically zero. That is completely uninspiring.
  • Ultimately, a company is owned by shareholders, and the CEO must be accountable to them, as well as to the board. But Jobs doesn’t seem to be accountable to anyone. Passing off kidney failure and the need for a transplant as a hormonal imbalance? Sorry, but that goes way beyond issues of privacy. If Apple can claim, as it does in SEC filings, that the availability of the CEO is a critical issue, then the potential death of said CEO becomes a material issue and should be handled openly, not — pardon the phrasing — buried. Lying to the owners is a bad idea.

Give the guy his due? Sure. But let’s stop far short of a CEO hagiography.

Erik Sherman is a freelance journalist whose work has appeared in Newsweek, the New York Times Magazine, Technology Review, the Financial Times, Chief Executive, and other publications. Follow him on Twitter.

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  •  
    1

    oh my god

    11/06/09 | Report as spam

    RE: Jobs CEO of Decade Says Fortune: Give Me a Break

    Erik,

    Does he deserve a wee bit of credit for birthing a tech giant
    weeks away from bankruptcy?

    - saving the music industry
    - redefining mobiles
    - innovating the windows (small w) desktop
    - reviving Pixar and redefining animation
    - inspiring 6B people with his style of leadership, intelligence,
    determination

    'Give me a break' huh?

  •  
    2

    ErikSherman

    11/06/09 | Report as spam

    RE: Jobs CEO of Decade Says Fortune: Give Me a Break

    I think I did give him credit at the start. Just don't see him as the ceo of the decade. And let's not forget that he doesn't do all this sort of thing - like "redefine animation" - by himself. He may have provided the money, but the work was done by many and over years. As for his leadership, there are many who would disagree with you.

  •  
    3

    Jon T

    11/07/09 | Report as spam

    RE: Jobs CEO of Decade Says Fortune: Give Me a Break

    Rubbish. That cash pile generates huge benefit for Apple - their
    forward buying and booking of vast amounts of flash memory
    is but one example of its use.

    So, if all you can come up with by searching the internet for
    what others have come up with, then you fail - massively.

    Everything about what Apple and Pixar have achieved makes
    him the most incredible CEO in our lifetimes, bar none.

    He will likely be CEO of the next decade too.

    And Erik, why is it your opinion that voting Jobs CEO of the
    decade is the same as giving him a Sainthood?


  •  
    4

    ErikSherman

    11/07/09 | Report as spam

    RE: Jobs CEO of Decade Says Fortune: Give Me a Break

    Oh, please. The money isn't being put into buying memory - it's being put into sitting and making 1 percent interest. Lots of companies can and do buy memory in large quantities, and the prices have been low in the market because of the enormous glut, so it's not even as though Apple got to block others. Don't bother with trite "you fail" language if you don't know enough about what is going on in the industry.

    And to claim that Jobs is the greatest CEO of our lifetimes is inane. Lou Gerstner turned IBM around when it was crashing into a wall - no mean feat. Jack Welch took a top organization and GE and kept it moving along. Katherine Graham at the Washington Post was certainly in my lifetime. James Burke at J&J in the 80s, who could make a company live by a principle. Sam Walton built an operational empire.

    You say that no one ever touched the greatness of Jobs and then ask me why naming him CEO of the decade is the same as elevation to sainthood? You're going a step farther and deifying him.

  •  
    5

    pkrufus

    11/08/09 | Report as spam

    RE: Jobs CEO of Decade Says Fortune: Give Me a Break

    I guess it's a question of cool. Cool combined with vision. Whether it's Gerstner, Welch, Graham, Burke or even Walton, all of them were visionaries in that they vastly improved their own areas of business by leaps and bounds. But Jobs is a guy whose genius has made businesses in areas that didn't really exist. I mean look at iTunes. The guy has redefined the way the music industry does business. And with the app store he's spawned another industry.

    Does Jobs single-handedly manufacture an iPhone or an iPod? No. Does he fit the motherboards of iMacs? Nada. But does he call the shots on the direction Apple takes? Hell, yeah. Talent hits a target others can't hit. Genius hits a target others can't see. That's why Jobs commands the kind of respect he does.

    Plus, which other CEO has had such a profound effect on culture and society? Let's face it, how many of the names you've mentioned have had this kind of impact on you and me? Yes, they impacted the bottomline. Yes, they grew the topline. Yes, they created value for shareholders. But I doubt you'd go so far as to say they changed the way the world lives.

  •  
    6

    ErikSherman

    11/08/09 | Report as spam

    RE: Jobs CEO of Decade Says Fortune: Give Me a Break

    Apple under Jobs has created products that have become very popular. But, sorry, that's not really changing the way the world lives. You want more fundamental change? Ted Turner - not my favorite CEO, but opened cable in a way no one had thought of. Ray Croc (this is a for better or worse example). Howard Schultz of Starbucks, because who ever thought of paying that kind of money for coffee? Jeff Bezos, whose growth and transformation of Amazon, no matter what I think of some of their practices, has been brilliant. Bill Gates, for that matter, because the PC under Microsoft's influence has changed the world far more than the iPod or iPhone. If changing culture is critical, then why not the CEO of Facebook?

    Notice that I haven't said that Jobs isn't a good CEO, or even a relatively great one. But the greatest bar none as one person suggested? That's a laughable claim. Even the greatest since 2000? Yes, the company has done really well financially, but I don't see him as a prime example of what a CEO should be given that such issues as governance and relations to investors are critical for what a CEO must do, and Jobs frankly sucks at these.

  •  
    7

    glg1@...

    11/09/09 | Report as spam

    RE: Jobs CEO of Decade Says Fortune: Give Me a Break

    Give us your nomination...

  •  
    8

    ErikSherman

    11/09/09 | Report as spam

    RE: Jobs CEO of Decade Says Fortune: Give Me a Break

    Why? I think the concept of a "CEO of the decade" is pretty silly anyway.

  •  
    9

    glg1@...

    11/10/09 | Report as spam

    RE: Jobs CEO of Decade Says Fortune: Give Me a Break

    Curious - thats all.
    Wondering who you think are the truly great corporate leaders of this era - with the rapid changes, social issues, etc.

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