Tim Cook, who has run Apple Inc. for five months while Steve Jobs has been on medical leave, has emerged as a star in his own right -- and one that the company needs to make sure stays put."At this point, losing Tim Cook would be a bigger deal to investors than if Steve Jobs stepped aside," says Gene Munster, an analyst for Piper Jaffray. "Just that thought makes my stomach tighten up."
Mr. Cook has been the target of overtures from other technology giants in the past: Motorola Inc. tried to hire Mr. Cook last year while Dell Inc. wooed the executive two years ago, according to people familiar with the situation. Apple, Motorola and Dell declined to comment.
The Cupertino, Calif., company's board is "acutely aware that Tim is a very attractive property," says a person familiar with Apple's thinking. As a result, the chief operating officer and 11-year Apple veteran may be invited onto Apple's board. He currently serves on the board of Nike Inc.
Recruiters say Mr. Cook's leadership of Apple over the past five months has solidified his reputation as an attractive candidate for large companies looking for someone to run all or a big piece of their businesses.
Mr. Cook's leadership is notable for how life has continued as normal at Apple without Mr. Jobs. On Monday, Apple reported that it sold more than one million units of its new iPhone 3G S model in its first three days on the market, exceeding analysts' expectations. Apple's press release Monday announcing the milestone included a quote from Mr. Jobs, not Mr. Cook.
Mr. Jobs went on medical leave in mid-January without disclosing the details of his ailment, though he has occasionally been to Apple's headquarters. The 54-year-old had a liver transplant in Tennessee about two months ago.
Mr. Jobs is due back this month, but he could work part-time initially. Mr. Cook, 48, may have a more encompassing role beyond his responsibilities as operating chief.
"Now it's clear that Tim Cook can run any technology-based company," says Stephen Mader, a co-head of the CEO practice at recruiters Korn/Ferry International. "He's a more attractive CEO candidate both inside Apple and outside."
Under Mr. Cook's leadership, Apple's stock has risen about 60% since mid-January, compared with an 18% increase in the Nasdaq Composite Index. Shares closed at $137.37, down $2.11, on Monday. In April, Apple also reported a 15% increase in quarterly profit as consumers continued to buy its iPods and iPhones.
Several people who do business with Apple say their dealings with the company have remained unchanged in recent months and that products continue to be developed and released on schedule. One tech-industry recruiter said Mr. Cook has been taking on more CEO responsibilities, such as negotiations with AT&T Inc., the exclusive U.S. carrier for Apple's popular iPhone.
Mr. Cook's title hasn't changed while Mr. Jobs has been out -- he wasn't named interim CEO. Still, the company has now turned twice to Mr. Cook to oversee Apple. Mr. Cook was handed the reins for two months in 2004 when Mr. Jobs was recuperating from surgery to remove a cancerous tumor from his pancreas.
Mr. Cook joined Apple in 1998 from Compaq Computer Corp. to fix Apple's then-troubled supply-chain system. At the time, Apple was dealing with bloated inventory and an annual loss of more than $1 billion. Mr. Cook was instrumental in closing down factories and outsourcing manufacturing to contractors.
"He turned a company that was on the brink of bankruptcy into one that is generating a huge amount of free cash," says Charlie Wolf, an analyst at Needham & Co.
People who know Mr. Cook say his persona sharply contrasts with that of Mr. Jobs. While Mr. Jobs is known for his fiery temper and his showmanship at public events, Mr. Cook is polite, low-key and prefers to stay behind the scenes.
"One of [Mr. Cook's] great strengths is that he's very even tempered and that makes him a great manager," says Avie Tevanian, a former Apple executive.
Despite the tens of millions of dollars that Mr. Cook has received in Apple stock, the Alabama native keeps a humble lifestyle and still rents a house in Palo Alto, Calif. He is a cycling, running and hiking enthusiast and counts Yosemite National Park as one of his favorite destinations.
According to regulatory filings, Mr. Cook received total compensation of $7.4 million last year, including a base salary of $700,000. The company raised his base salary to $800,000 for the current year.
Some people close to Apple worry Mr. Cook lacks Mr. Jobs's overall vision and decisiveness. But Apple watchers believe he is growing into a leader, pointing to an impromptu speech in an earnings conference call in January that painted a particularly vivid picture of the direction that Apple was taking.
In it, Mr. Cook said, "We believe in the simple, not the complex. We believe we need to own and control the primary technologies behind the products that we make...We believe in saying no to thousands of projects so that we can focus on the few that are meaningful to us. Regardless of who is in what job, those values are so embedded in this company that Apple will do extremely well."
