Hearts & Minds: How to handle the delicate topic of the CEO’s health

A FTSE 100 company has delayed an investor day while its CEO recovers from a small medical procedure. It raises again, the question of how a company communicates the illness of the CEO or CFO? In this case it seems to be a minor issue but there will be instances in other companies when it is not. In those serious cases, when is it right to disclose, when not? How to reassure on continuity without misleading the market?

It’s a difficult, grey area. This is deeply personal, sensitive information, going public. Inevitably, missives from companies, their boards and the person involved tend to be reactive and vague. Employees, stakeholders can be left confused. The share price may indicate a degree of scepticism; into the breach too may step the media, dishing out criticism.

Quietly emphasise succession planning, the strength of the management team, interim arrangements and most important, express deep concern and appreciation for the ill CEO/CFO.

This is an extremely delicate path to negotiate. The company should proceed with kindness and humanity, showing it at all times, while protecting shareholder value, the need for transparency and best practice.

Because of the nature of what’s involved, it’s possible that the poorly person may be absent and treatment may already have started, before any public disclosure. This is bound to lead to critics accusing the company of knowing earlier and keeping the market and stakeholders in the dark, of covering-up. No, you’re being as open and transparent as you can be. It really is a case of saying so and expecting them to understand. They should, they’re humans too and this is a very human situation. After an initial backlash, things should calm down.

One example in a different era of how it can go wrong was Apple. When the company’s creative genius and dominant force, Steve Jobs, fell ill with terminal pancreatic cancer in 2004 and required surgery, he said he’d had treatment for another, relatively harmless type of pancreatic tumour. Then it turned out he’d delayed the operation while pursuing holistic remedies. In the period that followed, Jobs’ looked worse and worse, fueling the rumour-mill. In 2008, he pulled out of a keynote industry speech. Analysts were told it was ‘a private matter’. Six months later, with speculation now rampant, Jobs said it was just a ‘hormone imbalance’ and a ‘nutritional problem’. Barely a week after that, Apple announced that Jobs was taking a medical leave of absence and the shares crashed.

Chris Blackhurst is one of the UK’s foremost business journalists. He was previously Editor of The Independent and City Editor of the Evening Standard.