Apple Inc. (AAPL) investors on Wednesday rejected a measure that would have required the company to outline succession plans, leaving unclear how it will handle the continuing health issues of Chief Executive Steve Jobs.

The succession-planning measure, brought by the Laborers' International Union, would have required the Cupertino, Calif.-based consumer-electronics giant to produce an annual report on leadership change and develop criteria for candidates to the top position. Apple, which held its annual shareholder meeting on Wednesday, is continuing to tabulate results, but an initial count suggests the measure failed.

Succession planning at Apple has taken on new urgency since Jobs, who received a liver transplant as part of treatment for pancreatic cancer, went on medical leave suddenly last month. Jobs didn't attend the meeting, marking the second time in a decade he has missed the event.

The shareholder meeting comes as Apple is expected to launch the next iteration of its iPad tablet computer. Also on Wednesday, the company invited reporters to a March 2 event that will outline "what 2011 will be the year of." The invitation featured one of Apple's mobile applications, or apps, peeled back to reveal a device that resembled an iPad.

A new iPad would compete with a host of similar products that are hitting the market following the success of Apple's original. Motorola Mobility Holdings Inc.'s (MMI) Xoom tablet, Hewlett-Packard Co.'s (HPQ) TouchPad and a clutch of other handheld touchscreen computers are expected to hit the market in coming months.

Although Apple directors criticized the measure, an LIU representative said outlining policy for a change in leadership was Apple's responsibility.

"Apple bears a responsibility to be upfront with shareholders about how it would handle a CEO vacancy," Jennifer O'Dell, spokeswoman for the LIU, told a crowded room of investors.

More so than other CEOs, Jobs is closely identified with his company's success. A cross between a technology visionary and salesman, Jobs is able to stir excitement in the technophiles who throng to the company's retail stores to buy portable computers, music players and smartphones. He also has the "chops" to cut deals with music labels and movie studios that provide material to be played on those devices.

Jobs went on medical leave on Jan. 17, handing day-to-day operations to Chief Operating Officer Tim Cook. Jobs is still involved in larger strategic planning, according to The Wall Street Journal, and has continued to work on both the new iPad and iPhone.

Neither the company nor Jobs has commented on the specifics of his medical condition nor have they offered a prognosis.

After the meeting, some investors expressed disappointment that the succession-planning measure didn't pass.

"Obviously I'm concerned about Steve Jobs," said Lawrence Stickell, an insurance executive who owns about 1,000 Apple shares. "There's always concern with change."

Peter Oppenheimer, Apple's chief financial officer, said the company wanted to retain its cash reserves--currently worth about $60 billion--to take advantage of any opportunities that might come along. He didn't specify what type of opportunity the company might be looking for.

"We're not letting it burn a hole in our pocket," Oppenheimer said.

Some investors and commentators have called on the company to issue a dividend or buy back shares with the money.

Oppenheimer, a trusted Jobs' lieutenant, did shed light on the company's popular App and iTunes stores, saying that each operated at "just a little over" break even.

Another measure, brought by the California Public Employees' Retirement System, called for a majority vote to elect unopposed candidates to the board and appears to have passed. The company's current rules don't require a majority.

Investors re-elected all of the company's seven board members, including Jobs, who has been a board member since 1997.

Also re-elected were former Vice-President Al Gore, Intuit Corp. (INTU) Chairman Bill Campbell, J. Crew Group Inc. (JCG) Chairman Millard Drexler, Avon Products Inc. (AVP) CEO Andrea Jung, Genentech Chairman Arthur D. Levinson, and Northrop Grumman Corp. (NOC) CEO Ronald D. Sugar.

In after-hours trading, Apple shares were flat at $342.62 after rising 1.2% during the regular session.

-By Ian Sherr, Dow Jones Newswires; 415-439-6455; ian.sherr@dowjones.com
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