LBReport.com

News

LB-Based Molina Healthcare Corp Board Removes John Molina & Dr. Mario Molina From Their Executive Positions; They Remain As Board Directors; Company Release Cites "Disappointing Financial Performance"


LBREPORT.com is reader and advertiser supported. Support independent news in LB similar to the way people support NPR and PBS stations. We're not non-profit so it's not tax deductible but $49.95 (less than an annual dollar a week) helps keep us online.
(May 2, 2017) -- Long Beach-based Molina Healthcare, Inc.'s governing board has voted to remove Dr. J. Mario Molina as President and CEO and John C. Molina as Chief Financial Officer. The two will remain directors on the board with Dr. Molina remaining a candidate for re-election as director at the company's upcoming annual meeting, which has been rescheduled from tomorrow (May 3) to next week.(May 10) "to allow stockholders time to consider the information described in this press release" and "additional information that will be set forth in a Form 8-K and proxy supplement to the filed by the Company, and to change their votes if desired."

[Scroll down for further.]


A company release today (May 2, text below) quotes Non-Executive Board Chair Dale Wolf as saying, "In light of the Company's disappointing financial performance, the Board has determined to change leadership in order to drive profitability through operational improvements. Dr. Molina and Mr. Molina will remain as directors onthe Board, and Dr. Molina remains a candidate for re-election as director at the company's upcoming annual meeting."

The salient portion of the company's release text is below.

Molina Healthcare, Inc. (NYSE: MOH) today announced leadership changes, under which Joseph W. White, Chief Accounting Officer, has been named Interim President and Chief Executive Officer replacing Dr. J. Mario Molina. The Board will immediately commence the search process for a permanent CEO. Mr. White has also been named Chief Financial Officer, replacing John C. Molina. In addition, the Board of Directors has named current Director Dale B. Wolf as Non-Executive Chairman of the Board. These changes are effective immediately. Dr. J. Mario Molina and John C. Molina will continue to serve as directors on the Board, and Dr. Molina remains a candidate for re-election as a director at the Company's upcoming annual meeting.

"The Board of Directors appreciates Mario and John Molina's leadership and contributions for more than two decades," said Dale B. Wolf, Chairman. "In light of the Company's disappointing financial performance, the Board has determined to change leadership in order to drive profitability through operational improvements. These changes represent targeted and deliberate actions to enhance the Company's focus and improve its competitive position within the healthcare industry. With the industry in dynamic transition, the Board believes that now is the right time to bring in new leadership to capitalize on Molina's strong franchise and the opportunities we see for sustained growth. The Board is committed to achieving operational excellence and improving the Company's financial performance on behalf of our shareholders, more than 20,000 employees and our over 4 million members."

The Board has approved the adjournment of the annual meeting from Wednesday, May 3 to Wednesday, May 10, 2017 at 10:00 a.m. Pacific Time, at Molina Healthcare, Inc. Corporate Headquarters, 200 Oceangate, 15th Floor, Long Beach, California 90802 in order to allow stockholders time to consider the information described in this press release and the additional information that will be set forth in a Form 8-K and a proxy supplement to be filed by the Company, and to change their votes if desired. The record date for the meeting will remain March 9, 2017.

Mr. White has over 25 years of financial management experience in the healthcare industry, and served as Molina Healthcare's Chief Accounting Officer since June 2003. Mr. White has led the Company's most recent operational improvement initiatives and is a widely respected leader both within the Company and in the greater healthcare industry. Prior to joining Molina, Mr. White was the Chief Financial Officer of Maxicare Health Plans, Inc., where he was also a member of the Board of Directors.

After market close today, the Company will report net income per diluted share of $1.37 (inclusive of receipt of a $75 million ($0.84 per diluted share) acquisition break-up fee)...

Sponsor

Sponsor

Sponsor

Sponsor: Computer Repair Long Beach

Sponsor

Sponsor

Sponsor




blog comments powered by Disqus

Recommend LBREPORT.com to your Facebook friends:


Follow LBReport.com with:

Twitter

Facebook

RSS

Return To Front Page

Contact us: mail@LBReport.com



Adoptable pet of the week:





Carter Wood Floors
Hardwood Floor Specialists
Call (562) 422-2800 or (714) 836-7050


Copyright © 2017 LBReport.com, LLC. All rights reserved. Terms of Use/Legal policy, click here. Privacy Policy, click here