IBJNews

WellPoint investors force Braly ouster

 IBJ Staff
December 28, 2012
Back to TopCommentsE-mailPrintBookmark and Share
Year In Review
More
Stories
City successfully stages Super Bowl, shoots for another Indiana adopts right to work WellPoint investors force Braly ouster Judge lays into Durham, sentences him to 50 years ISO reaches new contract, launches fundraising spree Developers unleash blitz of apartment projects Hoosier voters tap Pence to continue Daniels' legacy Daniels wins presidency—at Purdue City projects move ahead, following clash over TIF Indy airport sends CEO Clark packing In election shocker, voters bounce schools chief Bennett Bernard bounced as IndyCar Series CEO Digital marketer ExactTarget splashed onto NYSE


Newsmakers
2012
                              NEWSMAKER: School librarian Ritz won with grass-roots campaign 2012
                              NEWSMAKER: Crime stance returns Hogsett to political spotlight 2012 NEWSMAKER:
                              Council Dem Mahern plays role of antagonist 2012 NEWSMAKER: CEO keeps Simon stock surging 2012 NEWSMAKER:
                              Miles adds to diverse business, sports career Other 2012 news
                              of note

WellPoint Inc. is looking for a new CEO after investor anger in August forced the company’s board to oust Angela Braly.

braly-angela-mug.jpg Braly

Braly’s five-year tenure leading the Indianapolis-based health insurance company was hurt by the recession but also by repeated missteps. Investors eventually determined that, for the mistakes to stop, Braly had to go.

WellPoint mispriced its business three times in the four years leading up to Braly’s departure. In addition, WellPoint missed its earnings forecast in two out of the last three quarters that Braly led the company.

WellPoint’s stock generated negative returns of nearly 28 percent during Braly’s tenure, the worst performance among the five largest health insurers in that period.

“We believe there is one—and only one—explanation for WellPoint’s underperformance: well-deserved investor antipathy toward Ms. Braly as a result of a regular cadence of managerial blunders that has plagued her term as CEO,” wrote two partners of Royal Capital Management LLC, a New York hedge fund that owns nearly 839,000 WellPoint shares, in an Aug. 22 letter calling for Braly’s ouster.

WellPoint’s interim CEO is John Cannon, who was general counsel under Braly. He has said he does not want the top job permanently.

The company’s board has been searching for a new leader. Among the candidates is Ron Williams, the former CEO of Aetna Inc. and a former executive in California-based WellPoint Health Networks Inc., a predecessor of WellPoint Inc.•

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. With Pence running the ship good luck with a new government building on the site. He does everything on the cheap except unnecessary roads line a new beltway( like we need that). Things like state of the art office buildings and light rail will never be seen as an asset to these types. They don't get that these are the things that help a city prosper.

  2. Does the $100,000,000,000 include salaries for members of Congress?

  3. "But that doesn't change how the piece plays to most of the people who will see it." If it stands out so little during the day as you seem to suggest maybe most of the people who actually see it will be those present when it is dark enough to experience its full effects.

  4. That's the mentality of most retail marketers. In this case Leo was asked to build the brand. HHG then had a bad sales quarter and rather than stay the course, now want to go back to the schlock that Zimmerman provides (at a considerable cut in price.) And while HHG salesmen are, by far, the pushiest salesmen I have ever experienced, I believe they are NOT paid on commission. But that doesn't mean they aren't trained to be aggressive.

  5. The reason HHG's sales team hits you from the moment you walk through the door is the same reason car salesmen do the same thing: Commission. HHG's folks are paid by commission they and need to hit sales targets or get cut, while BB does not. The sales figures are aggressive, so turnover rate is high. Electronics are the largest commission earners along with non-needed warranties, service plans etc, known in the industry as 'cheese'. The wholesale base price is listed on the cryptic price tag in the string of numbers near the bar code. Know how to decipher it and you get things at cost, with little to no commission to the sales persons. Whether or not this is fair, is more of a moral question than a financial one.

ADVERTISEMENT