IBJNews

WellPoint management team gets board support, CFO says

Back to TopCommentsE-mailPrintBookmark and Share

Almost two weeks after Angela Braly was forced out as WellPoint Inc. CEO, the management team she put in place has been told by the board it will stay, said Chief Financial Officer Wayne Deveydt.

The executive team is committed to remaining at Indianapolis-based WellPoint, the second-biggest U.S. health insurer, Deveydt said at a conference Monday in New York.

WellPoint shares declined 2 percent Monday afternoon, to $59.06 each, erasing an earlier gain.

Braly resigned as head of the company Aug. 28 after shareholders, some publicly, expressed discontent with her leadership. John Cannon, WellPoint’s general counsel, will serve as interim CEO during the search for a replacement, the insurer said at the time.

“Our board very proactively wants to maintain the management team and they’ve reached out to us in that manner,” Deveydt said.

Cannon isn’t interested in taking the job on a permanent basis, Deveydt said. The board will conduct an internal and external search, and no timeline has been set to choose a replacement.

Braly, 51, took over the CEO job in June 2007. During her tenure, Braly became a high-profile foe of President Barack Obama’s health-care overhaul and, more recently, sparked the ire of investors after WellPoint missed earnings estimates and cut its forecast twice in four months.

“The stockholders want to see dramatic changes in Wellpoint’s performance,” said Erik Gordon, a professor at the University of Michigan’s Steven M. Ross School of Business in Ann Arbor, in an e-mail. “The changes start at the top, but they don’t end there.”

Braly’s successor will have to right the company’s financial performance and oversee WellPoint’s integration of insurer Amerigroup Corp. and vision company 1-800-Contacts Inc.

In June, WellPoint agreed to buy eye-wear provider 1-800-Contacts Inc. for about $900 million. In July, the company announced the $4.9 billion acquisition of Amerigroup to become the biggest private provider of plans for Medicaid, the federal-state program for the poor.

The Amerigroup deal may close in the fourth quarter, Deveydt said Monday. He has been touted as a potential CEO candidate, according to analysts.

DeVeydt said the insurer isn't prepared yet to provide guidance for its 2013 results. He cited several reasons for the reluctance, including changes associated with the Affordable Care Act.

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. I had read earlier this spring that Noodles & Co was going to open in the Fishers Marketplace (which is SR 37 and 131st St, not 141st St, just FYI). Any word on that? Also, do you happen to know what is being built in Carmel at Pennsylvania and Old Meridian? May just be an office building but I'm not sure.

  2. I'm sorry, but you are flat out wrong. There are few tracks in the world with the history of IMS and probably NO OTHER as widely known and recognized. I don't care what you think about the stat of Indy Car racing, these are pretty hard things to dispute.

  3. Also wondering if there is an update on the Brockway Pub-Danny Boy restaurant/taproom that was planned for the village as well?

  4. Why does the majority get to trample on the rights of the minority? You do realize that banning gay marriage does not rid the world of gay people, right? They are still going to be around and they are still going to continue to exist. The best way to get it all out of the spotlight? LEGALIZE IT! If gay marriage is legal, they will get to stop trying to push for it and you will get to stop seeing it all over the news. Why do Christians get to decide what is moral?? Why do you get to push your religion on others? How would legalizing gay marriage expose their lifestyle to your children? By the way, their lifestyle is going to continue whether gay marriage is legalized or not. It's been legal in Canada for quite a while now and they seem to be doing just fine. What about actual rules handed down by God? What about not working on Sundays? What about obeying your parents? What about adultery? These are in the 10 Commandments, the most important of God's rules. Yet they are all perfectly legal. What about divorce? Only God is allowed to dissolve a marriage so why don't you work hard to get divorce banned? Why do you get to pick and choose the parts of the Bible you care about?

  5. Look at the bright side. With the new Lowe's call center, that means 1000 jobs at $10 bucks an hour. IMS has to be drooling over all that disposable income. If those employees can save all their extra money after bills, in five years they can go to the race LIVE. Can you say attendance boost?

ADVERTISEMENT