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The Valley's Toughest Jobs
The chief executive of Apple runs through a string of general counsel.
Corporate Counsel
November 01, 2009
Apple Inc. CEO Steve Jobs has shown great staying power. His general counsel, not so much.
On September 15 Apple announced that D. Bruce Sewell would become the new legal chief at the Cupertino, California–based tech giant. Sewell replaced Daniel Cooperman, who was Apple's legal chief for just under two years. However, Cooperman's tenure was more than twice as long as the ten-month stint of his predecessor, Donald Rosenberg. All three came to Apple after serving as the general counsel of another tech powerhouse: Sewell from Intel Corporation; Cooperman from Oracle Corporation; and Rosenberg from International Business Machines Corporation.
"We are thrilled to have Bruce join our executive team, and wish Dan a very happy retirement," Jobs said in a press release. "With Bruce's extensive experience in litigation, securities, and intellectual property, we expect this to be a seamless transition."
Sewell's hiring at Apple was announced a day after his departure from Intel, which came as part of a broader management shake-up. Patrick Gelsinger, a manager in Intel's digital enterprise group, also opted to leave the Santa Clara, California–based chip maker. Gelsinger is now chief operating officer at Hopkinton, Massachusetts–based EMC Corporation.
Intel CEO Paul Otellini said in a press release, "We thank Pat and Bruce for many years of service to Intel and wish them well in their future endeavors."
Sewell first joined Intel in 1995 as a senior attorney. He became general counsel in 2004, replacing F. Thomas Dunlap, who retired after 30 years with the company. One of Sewell's biggest challenges as GC was fighting charges by various government agencies that Intel violated antitrust laws. This past May, the European Commission slapped Intel with a record $1.5 billion fine for offering illegal rebates to computer makers that used fewer or no chips from its main competitor, Advanced Micro Devices, Inc.
Apple's law department has had high turnover at the top ever since Nancy Heinen stepped down as general counsel in 2006, a victim of the stock option backdating scandal. Heinen reached a $2.2 million settlement with the Securities and Exchange Commission last October in which she neither admitted nor denied charges that she had altered option grants at Apple.
After Rosenberg didn't work out as Heinen's first replacement, Jobs personally recruited Cooperman to take the GC spot. In an e-mail, Cooperman said he was looking forward to his free time. "It is not often that we get to pursue our dreams," Cooperman wrote. "After 13 consecutive years in the GC role at two major Valley companies, with virtually no time to myself, I am looking forward to pursuing some other interests: community service, board and advisory roles, consulting, teaching, maybe even taking up golf. But it will be at my own pace, and on my own time."
The timing of Cooperman's retirement, at the end of September, was a little curious, since he potentially left about $17.5 million worth of unvested restricted Apple stock on the table. He was granted 133,000 shares of Apple restricted stock when he took over the GC slot on November 1, 2007. His grant was scheduled to vest over four years, and he got the first quarter last fall, worth almost $6 million at the company's recent share prices. The next quarter of the grant was scheduled to vest on November 1 of this year. Neither Apple nor Cooperman would say if the company had agreed to give him the stock early.
When Rosenberg left Apple, he left about $30 million worth of unvested shares on the table. By contrast, Heinen cashed in about $50 million in stock during her decade-long tenure as GC.
Sewell has the potential to benefit from Apple's success too. The company has given him a grant for 100,000 shares, which would be worth around $18 million at current share prices. But like Cooperman's grant, Sewell's shares will also vest over four years—meaning that he will have to double his predecessor's tenure.
