Apple, a company synonymous with innovation and cutting-edge technology, is now navigating a delicate succession plan that ensures continuity while ushering in new leadership. As the tech giant prepares for the departure of its long-serving CFO Luca Maestri, it is clear that Apple’s strategy goes beyond simply filling vacancies—it aims to retain key executives in roles that keep them close to the company, maintaining stability and reassuring shareholders.

Keeping the Old Guard Close

Apple has a well-documented history of retaining its top executives even after they step down from their primary roles. This approach, often seen as a way to manage transitions smoothly, has been used in the past with notable figures such as hardware engineer Bob Mansfield and iconic designer Jony Ive. The strategy involves transitioning these leaders into less demanding advisory roles where they can continue to influence and guide the company without the pressures of their former positions.

With Luca Maestri set to step down as CFO at the end of the year, Apple is again deploying this tactic. Kevan Parekh, currently the Vice President of Financial Planning and Analysis, will take over the CFO role on January 1, 2025. However, Maestri isn’t leaving the company entirely; he will retain his non-finance responsibilities, overseeing critical areas such as Information Systems and Technology (IS&T), information security, and real estate development.

This move underscores Apple’s commitment to ensuring that its seasoned executives remain available to provide counsel and support, especially during periods of transition. As Mark Gurman, Chief Correspondent on Apple and Tech at Bloomberg News, noted, “Apple’s succession strategy is all about making sure important executives never actually leave.”

The Value of Experience and Continuity

The decision to keep Maestri in a smaller role reflects Apple’s recognition of the value that experienced executives bring to the table. Maestri, who has been with Apple for over a decade, has played a pivotal role in maintaining the company’s financial health, especially during turbulent times. His expertise will continue to be an asset, particularly as Apple navigates an increasingly competitive and saturated market.

Claude Loeffen, CEO at Nederlia.com and an expert in leadership recruitment, emphasized the importance of such continuity in leadership transitions. “Apple’s approach shows the importance of planning carefully for leadership changes to keep things running smoothly,” Loeffen said. “It’s about more than just finding the right person for the job. It’s also about making sure changes happen smoothly so the company keeps growing and moving forward.”

This sentiment is echoed by Ehsan Etezad, a researcher specializing in performance science. Etezad highlighted Maestri’s management style, which favors working with a small, high-quality team. “Under his management, Apple had an investor relations group of just two people and $230 billion of cash managed by a team of seven,” Etezad observed. “When you have skilled, knowledgeable, and motivated people, they can get more done in less time.”

A Proven Strategy for Succession

Apple’s strategy of retaining key executives is not a new one. In 2012, shortly after the death of Steve Jobs, Tim Cook faced his first major personnel challenge when Bob Mansfield, a highly regarded hardware engineer, announced his retirement. Cook managed to convince Mansfield to stay on in a smaller role, overseeing silicon and wireless technologies. Although Mansfield eventually handed over his responsibilities to Dan Riccio and Johny Srouji, he remained on the payroll as a consultant, ensuring that his expertise was still available to the company.

A similar approach was taken with Jony Ive, Apple’s legendary designer. After expressing a desire to step back in 2015, Ive was allowed to work part-time while being promoted to Chief Design Officer. This arrangement kept Ive involved with the company for another four years, maintaining his influence on Apple’s design ethos during a critical period.

The same strategy was employed with Phil Schiller, Apple’s former head of marketing, who transitioned into an Apple Fellow role in 2020. Schiller continued to oversee the App Store and product launch presentations, ensuring that his institutional knowledge and experience remained accessible to the company.

Challenges of the Approach

While Apple’s succession strategy has proven effective in maintaining continuity and stability, it is not without its challenges. Some within the company argue that keeping former executives around can stifle innovation and prevent the company from evolving. “Keeping executives around after they step down can sometimes stifle thinking, preventing the company from evolving and reinventing itself,” noted Gurman.

As Apple faces a new era of market saturation and slower growth, the need for fresh ideas and new leadership becomes increasingly important. The company’s reliance on seasoned executives may provide short- to medium-term stability, but it could also hinder the emergence of new leaders who can drive the company forward in a rapidly changing industry.

Looking Ahead: The Next Generation of Apple Leadership

Apple’s succession plan, while focused on retaining key executives, also involves fostering new leadership. The upcoming transition of the CFO role from Luca Maestri to Kevan Parekh is just one example of how Apple is preparing for the future. Parekh, who has been with Apple for several years, brings a fresh perspective to the role while benefiting from the guidance and experience of his predecessor.

As Apple’s top executives approach retirement age, the company will need to strike a balance between maintaining continuity and encouraging innovation. The potential successors for key roles, including Chief Operating Officer Jeff Williams, services head Eddy Cue, and even CEO Tim Cook, will play a crucial role in shaping the future of Apple.

Apple’s ability to navigate this transition period will be a test of its resilience and adaptability. As Louis Katz, a keynote speaker and expert in organizational transformation, put it, “With new leadership comes the opportunity to reignite the courageous spirit that once propelled Apple to the forefront of the tech industry.”

A Strategy Rooted in Stability

Apple’s succession plan reflects a deep-seated belief in the value of experience and continuity. By retaining key executives in advisory roles, Apple ensures that its leadership team remains strong and capable of guiding the company through challenges. However, as the tech giant looks to the future, it must also be willing to embrace new ideas and foster the next generation of leaders who can carry the company forward.

The success of Apple’s succession strategy will ultimately depend on its ability to balance these competing priorities—maintaining the stability that has made it one of the most successful companies in the world, while also fostering the innovation that will secure its future. As the company enters this new chapter, all eyes will be on how it navigates these transitions and whether it can continue to set the standard for leadership in the tech industry.