I don't know if the stock or employee morale would be performing any better under different leadership, but something about these announcements seems off. Layton was a 20+ year Centene veteran so he seemed like a shoe in. And then a board member, who is a lawyer and former CMS administrator, resigned over the lack of process for selecting the CEO. I wonder what went wrong.
Centene Announces Organizational Enhancements, Establishes The Office Of The President
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NEWS PROVIDED BY
Centene Corporation
Jul 13, 2021, 16:46 ET
ST. LOUIS, July 13, 2021 /PRNewswire/ -- Centene Corporation (NYSE: CNC) announced today an organizational enhancement approved by the Board of Directors.
In an effort to further recognize the size and scale of the company, broaden executives' capabilities, and support Centene's continued growth and innovation, the company has created the Office of the President (OOP). The OOP will be comprised of Michael Neidorff, Brent Layton and Sarah London. The OOP will be effective immediately.
Michael Neidorff will continue to serve as Chairman, President and Chief Executive Officer. Under the OOP, Mr. Layton and Ms. London will continue to report to Michael Neidorff.
"Centene remains focused on innovation, growth, and agility. I am pleased to announce this organizational structure enhancement. It is consistent with managing a company of our size and scale and ensuring the continuity of our businesses under every circumstance," said Mr. Neidorff. "Brent and Sarah are integral to our leadership team and, with this enhanced organizational structure, we are further positioning the company to grow and achieve even higher levels of performance to better serve the evolving needs of our members, providers, customers and shareholders."
Brent Layton, previously appointed to President of U.S. Health plans, Products, and International and Executive Vice President will retain responsibility over Health Plans, Products and International. Mr. Layton has worked with Centene for over 20 years, first as a consultant for five years and then joining Centene as an employee in 2006. Mr. Layton has overseen the development and implementation of new health plans and international operations, as well as being on the front lines in Centene's approach with state governments in developing effective and innovative managed care programs.
Sarah London, previously appointed President, Health Care Enterprises and Executive Vice President of Advanced Technology, will continue in these roles. Health Care Enterprises is a portfolio of high growth companies independent of Centene health plans, designing differentiated platform capabilities and delivering industry-leading products and services to third-party customers. Previously, she served as a Partner for Optum Ventures and Chief Product Officer for Optum Analytics, working on product strategy and expansion.
Former CMS administrator resigns from Centene board after governance 'fell egregiously short'
By Rebecca TorrenceApr 19, 2022 5:45am
A former Centers for Medicare & Medicaid Services administrator has resigned from the Centene board, citing her frustrations with its governance process.
Leslie Norwalk, appointed to the board just over three months ago, issued notice of her immediate resignation last Monday, April 11, after coming to an impasse with leadership about the board’s direction, according to her resignation letter.
Her departure comes less than a month after Centene named its new CEO, Sarah London, to succeed longtime leader Michael Neidorff.
In her resignation letter, Norwalk referenced a “recent important decision” made by the board in which the governance process “fell egregiously short of what I and a number of other board members considered appropriate for making an informed decision.”
She took issue with what she deemed a lack of “adequate” information or time to discuss the issue at hand before voting, according to the letter.
Neither Norwalk nor Centene provided further insight into the board decision at hand.
Norwalk joined the Centene board in January, having previously served on the board of directors at Magellan Health, which the insurer acquired at the beginning of the year for $2.2 billion.
Norwalk said she feels the board “needs to refresh its approach to leadership,” going on to imply her dissatisfaction with one or more of the board leadership appointments.
“Based on my discussions with current leadership, however, I am not confident that meaningful changes will be made timely, if at all,” she wrote.