Here are just a few of the interesting executive changes making headlines over this past week:
Valeant Pharmaceuticals CEO Resigns, Looks for Cure for Its Ailing Reputation
Valeant Pharmaceuticals International, which specializes in neurological and dermatological treatments, announced that CEO Michael Pearson is resigning. He had only recently returned from a two-month medical leave, during which time he was reportedly hospitalized with pneumonia. Pearson, who will remain as CEO until a successor is found, is stepping down after a series of recent events at the company caused serious damage to its stock price and reputation. Congress and federal authorities are investigating Valeant’s pricing practices and its relationship with mail-order pharmacy Philidor. Valeant has also blamed its former CFO, Howard Schiller, for “improper conduct” after he and a former corporate controller allegedly provided auditors and a committee looking into the Philidor relationship incorrect information that led to inaccurate financial results, namely the company’s misreporting of sales figures. Additionally, Valeant is weighted with over $30 billion in debt, and its stock price, which soared above $200 a share in mid-2015, was trading in the humbling $20-$30 range in March 2016. Valeant was at one time well-regarded on Wall Street, which benefited from the company’s aggressive drug acquisition strategy and rapid growth.
Performance Sports Group CEO Resigns amid Class Action Lawsuit
Sports equipment manufacturer Performance Sports Group (PSG) announced that CEO Kevin Davis resigned. The resignation occurred within days of a class action lawsuit filing, which was filed on behalf of shareholders who purchased PSG stock between dates in August 2015 and March 2016. Among other things, the lawsuit alleges that PSG misled investors by failing to disclose an accurate financial outlook, particularly regarding the impact that the downturn in the sports equipment market — and the ensuing Chapter 11 bankruptcy filings of two of the company’s retail customers (Sports Authority and Team Express) — could have on PSG’s finances and stock. Its stock price, recorded at over $20 a share in mid-2015, fell below $5 in March 2016. Davis was succeeded by Amir Rosenthal, current PSG president and former CFO of the company. Rosenthal has been with PSG since 2008.
Roundy’s Rings Up Two New Presidents
Roundy’s, which operates supermarkets under the Pick ‘n Save, Copps, Metro Market, and Mariano banners, announced it appointed two new presidents. Michael Marx, formerly VP of people at parent company Kroger, was named president of Roundy’s Wisconsin, effective April 1. Roundy’s EVP of operations, Don Rosanova, was appointed president of Mariano’s, effective immediately. Marx and Rosanova will report to Roundy’s CEO Robert Mariano. The promotions come a few months after Kroger’s acquisition of Roundy’s and its 150 stores, located primarily in Wisconsin and Illinois.
Look for more Executives on the Move next week!