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Former Exec Tim Bucher Sues Apple for Wrongful Termination (UPDATE)

by , 6:05 PM EST, March 1st, 2005

A former top executive at Apple Computer has filed suit against the company accusing it of wrongful termination. The suit also contends that Apple denied Mr. Bucher compensation owed to him in the course of his termination.

According to the filed complaint, obtained by The Mac Observer, Mr. Bucher is seeking compensatory and punitive damages. The suit was filed February 4 in Santa Clara County Superior Court.

"The evidence in this case demonstrates that there was no cause for Bucher's termination," said council Dan Pyne, of the law firm Hopkins & Carley. "During his nearly two years at Apple, he did an outstanding job for the company and was well-regarded by colleagues on the Macintosh team. This is a case of a senior executive being treated differently than his peers and falling victim to a corporate power play. We are confident that when the facts of this case are evaluated by a jury, we will prevail."

Mr. Bucher was the head of Macintosh Hardware Engineering for Apple and oversaw development of the recently introduced Mac mini. He joined Apple in March of 2003 as Vice President of Macintosh System Development and was promoted to Senior Vice President of Macintosh Hardware Engineering in May of 2004 when Apple reorganized the company into Macintosh and iPod divisions.

History

Through a timeline, the complaint builds its case against Apple focusing on Mr. Bucher's successes and his former employers acceptance of his work.

After numerous promotions, raises and bonuses, Mr. Bucher was sent home from his job on November 10th, 2004, and then informed in January of 2005 that he had been terminated as of December 31st.

The lawsuit alleges that Apple CEO Steve Jobs and Tim Cook, Apple's executive vice president of worldwide sales and operations, told Mr. Bucher on two separate occassions that he had not failed in his work, but never gave specific reasons as to why they wanted him to leave the company.

"You're not a failure," Mr. Jobs reportedly told Mr. Bucher in early November. "Even God couldn't have done both of the jobs I pushed you to do."

Two days later, according to the lawsuit, Mr. Jobs told him "People sometimes think you are manic-depressive...I'm not sure what I am going to do, but I think I am going to have to ask you to leave the company."

In a November 14th meeting after he was sent home four days earlier, Mr. Cook reportedly told Mr. Bucher that "this is not a situation where you failed," but that Apple would nevertheless terminate his employment unless he took an option to resign.

After not taking the offer to resign, Apple terminated his employment on January 3 of this year. The complaint said that in the process of escorting him off the premises, standard practice for executive terminations at most companies, Roben Talia, Apple's human resources director, "told the plaintiff that he 'should talk to a psychologist; I will get someone to help you.'"

Though Mr. Bucher said he didn't want a psychologist, Ms. Talia insisted, and Apple arranged for him to speak with one. The complaint does not specify whether or not he actually spoke with a psychologist, or whether or not he underwent treatment or counselling.

Shares and options

Mr. Bucher was hired in 2003 at US$350,00 per year, and given a raise of $50,000 per year on June 7th, 2004. On April 1st, 2003, he was also given a bonus of 250,000 stock options as part of the executive bonus plan for that year.

On February 4th, 2004, Mr. Bucher was awarded another 75,000 options that the complaint alleges was "in recognition of the plaintiff's 'vital contribution and teamwork.'"

Both of these option awards vested over time, with 20,312 of them vesting at the end of the December quarter of 2004. At today's stock price (including the subsequent stock split of February 18th, 2005), these options would be worth approximately $760,000.

In addition, he was awarded an outright grant of 100,000 restricted shares that also had a vesting period that the suit does not specify. What it does specify, however, is that an agreement between Apple and Mr. Bucher provides that "all unvested units of restricted stock granted to the plaintiff shall vest fully on the date the plaintiff's employment terminates, if employment terminates for reasons other than 'cause' as defined" by the agreement.

At today's value (again, including the recent stock split), the restricted shares have a value of approximately $8.9 million.

According to the complaint, Mr. Bucher did not receive his restricted shares, or the options that should have vested at the end of the December quarter in 2004.

The plaintiff's pitch

The complaint filed with the court paints a picture of an executive who was praised and rewarded for his work throughout his employment with Apple until November 10th, 2004. It also states when he was promoted to executive vice president, he asked for transition time to fill his old position, but that Apple CEO Steve Jobs felt he could handle the task of managing his new duties at the same time he transitioned out of the old job.

Mr. Bucher's complaint carefully suggests, but never actually states, that Apple terminated him for problems in the work place associated with manic depression, with the added inference that this was the result of the pressures of undertaking both of those jobs.

At the same time, according to his complaint, mental illness is not a proper (and therefore legal) cause for termination, and that he is entitled to his restricted stock grant, his stop options that vested during the December quarter, and any other bonuses included in the executive compensation plan covering that quarter, all of which the complaint said he did not receive.

Apple's policy is to not comment on on-going litigation.

CNet News was first to break the story Wednesday.

Brad Gibson contributed to this article.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Mace Posts: 9167 Joined: 07 Aug 2003
Subject:

His behavior is not Apple-like.

View Name:Guest
Subject: right
Close Name:fartheststar Posts: 213 Joined: 04 Jan 2004
Subject:

You think that maybe he would have had a clue something was up if he was a top exec and sent home from work on November 10th - and fired in January.

I don't know about you but if someone sent me home from work and I didn't show or was asked not to show up for two months, that pretty much says it all.

View Name:Guest
Subject:
Close Name:chmood Posts: 17 Joined: 30 May 2002
Subject: I fear this will turn out badly for him

If there's truth to the implications regarding his mental state at the time of his release the one glaring forth from the complaint itself will do), he could come out of this action virtually unemployable. And, if it can be documented that he became incapable of managing his interactions with others, such that normal operations were disrupted, the court may find no grounds for judging the termination wrongful. And he'd end up with nothing, including prospects.

That would be sad.

View Name:Guest
Subject: i'd place bets they'll settle out of court
View Name:Guest
Subject:
View Name:Guest
Subject: Jobs is a jerk
Close Name:deepkid Posts: 13 Joined: 31 Aug 2004
Subject: It's a corporation

As much as I love Apple, we have to keep in mind that it's a huge corporation and anyone seasoned in corporate america knows that it's mostly headgames, literally. Since we weren't there, we don't know what happened but I hope that they can work it out sensibly as it's giving the company a black eye. Tim, if you happen to read this, may God be with you.

Close Name:jakee Posts: 50 Joined: 09 May 2003
Subject:

From cnet, "The former WebTV and Microsoft executive charges that he was terminated, in part, because of a perceived disability".

Part of the reason - what are the other reason(s)?

'perceived' implies that he actually doesn't have a disability but that some other failing may have been attributed to him being depressed.

Sounds like lawyer speak for, "we haven't a case here but we'll try to get some money for you. Introducing the word 'disability' with all it's connotations is unnecessarily emotive.

I can understand how being a former employee of the dark side he could be perceived as having a disability, maybe the MS corporate culture was so well ingrained that it proved more of a problem than amticipated.

The comments attributed to Jobs are the kind of thing one would say to someone who was feeling depressed etc to make them feel better. Note how this compares with what we usually hear, that Jobs is a tyrant who shouts at ineffective employees.

View Name:Guest
Subject:
Close Name:chmood Posts: 17 Joined: 30 May 2002
Subject: A crucial position, an intractable & unco-operative exec

IF TB has real problems, and IF he refused to do anything about it, Apple would have NO CHOICE but to dismiss him - ever worked in a situation where a key exec was simply out-of-control?

No?

I have. And this sounds like Apple trying to go easy on the guy yet still get him out of the way so business could go forward.

By taking it to court, and demanding compensation, he's making it impossible for Apple to help him save face, or help him deal with his problem. Sure, this *could* just be Steve the Power Asshole - but that's not consistent with the complaint itself!

Going by THE COMPLAINT, I fear this will go very badly for Mr. Bucher.

View Name:Guest
Subject: A little Hearless don't you think jakee
Close Name:kenaustus Posts: 601 Joined: 27 Jun 2003
Subject: It appears

That Apple gave him time, between sending him home and terminating his employment, for him to get help and work on resolving work related issues. Apple may have been advised by a doctor that professional help and a Rx for his condition might take care of things - they certainly gave him time to address the issue.

The problem Tim now faces is that he will force Apple to put the issues on the table in public documents and will have given away his right to privacy.

All in all it is a sad situation where a very bright person with (apparently) a problem that is solvable is lost to Apple and will have his personal problems exposed in public.

Close Name:jakee Posts: 50 Joined: 09 May 2003
Subject: From heartless jakee

The man is caught in an incredibly difficult situation, sue for $10M or walk away empty handed.

There is no medical evidence presented that this guy is/was ill, the only 'evidence' so far presented is his recollection of comments made by other members of staff. The lawyer's comment 'perceived disability' strongly indicates Bucher DOES NOT have a disability.

Clearly there was a problem but we don't know what it was. Given the article

It appears the guy had (communication) problems
It appears colleagues advised he seek help (not just the HR guy escorting him off the premises)
It appears he did not seek help

The lawyers angle seems to be to confuse 'illness' and 'disability', somewhat akin to claiming temporary insanity when accused of a crime.

Bipolar disorder? - I think you caught the red herring.

Close Name:Mace Posts: 9167 Joined: 07 Aug 2003
Subject:

Even if Tim Bucher won, there would not be many firms that are willing to employ him. Do you want your employee to sue you?

Close Name:BurmaYank Posts: 21 Joined: 22 Oct 2003
Subject: No one can legally be fired for a treatable mental illness.

If that IS why Apple did it, there's no way Apple won't be utter toast in the upcoming lawsuit, and Tim Bucher's going to be much, much richer.

Legally, it's not permissible for an employer to fire an employee simply because his/her bipolar disorder (AKA, "manic-depression") somehow significantly impairs or otherwise interferes with his/her work performance or that of any of his/her co-workers, because bipolar disorder is a medically-treatable condition, like pneumonia, etc. Legally, Apple is therefore required to put those with a disabling treatable medical condition on a medical leave of absence until they have recovered their health, and then Apple is obliged by law to allow them to demonstrate their ability to adequately perform their jobs and return to them after successful therapy. If they cannot recover their capacity to do the job, they cannot be terminated, but instead must be put on another form of leave or retired, with full benefits, as long as they never refuse to comply with their treatments and other requirements legally put on them.

And, I haven't seen anything saying that he refused to see a psychologist PRIOR to his being fired. There's nothing in the article pertaining to whether he was told PRIOR to his termination to seek medical help for this, or about any refusal to do so PRIOR to his termination. Whether or not he did seek the psychological help Apple suggested he get after they had already notified him of his termination is, of course, irrelevant to the causes of his termination.

I can't believe Apple could be so stupid as to try to fire someone for "being a manic-depressive". There has just got to be a more justifiable cause for his termination than some sort of medical problem.

Obviously, something bad must have happened after Jobs reportedly told Bucher in early November, "You're not a failure" ... "Even God couldn't have done both of the jobs I pushed you to do.", but before Jobs told him two days later, "People sometimes think you are manic-depressive...I'm not sure what I am going to do, but I think I am going to have to ask you to leave the company." As noted, he was one of two executives that left Apple (abruptly?) around then and no reasons for the departure of either executive were given by Apple at the time - were they connected? We know Tim Cook had to cover for a guy who had been doing two jobs, while a replacement was urgently sought. Something unexpected seems to have happened suddenly that required a drastic purge near the top.

View Name:Guest
Subject:
View Name:Guest
Subject: If you knew Tim
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