WellPoint likely to go outside for chief [Indianapolis Business Journal (IN)]
By Wall, J K | |
Proquest LLC |
While
That's partly because
While WellPoint did extensive succession planning, neither executive is fully ready to step in because the board did not expect to be looking for a successor to Braly, 51, so soon, according to two high-level WellPoint officials who recently left the company.
Another factor: Because Braly was forced out by investor anger, WellPoint's board is likely to seek a new CEO who already has experience making money for
Of the outside contenders for Braly's job, the name mentioned most often among current and former employees of WellPoint is
"I would like to think we would be open-minded to give someone with the board's backing a chance," said
That lack of confidence has been growing for the past year. Questions about Braly's future grew steadily more intense before erupting
WellPoint's board members, who by all accounts liked Braly and the job she was doing, stood by her publicly for a month while also canvassing the opinions of large shareholders. Ultimately, the board ousted Braly to placate investors.
But the heat isn't off the board yet. Several investors were upset that it took an entire month for the board to name an outside search firm,
And some are impatient that the company expects its CEO search to take three to six months - while huge changes to the health insurance industry created by the 2010 federal health reform law are due to take effect in 2014.
Inside vs. outside
WellPoint spokeswoman
"Our board and our company have detailed and well-thought-out succession plans," Binns wrote in an e-mail in response to claims that WellPoint has no ready-to-go internal candidates.
In fact, she wrote, the company used its emergency succession plan when it named
WellPoint does extensive succession planning throughout the top three or four ranks of its managers, according to former WellPoint brass. The company asks lower managers what jobs they aspire to and also performs aptitude assessments to see which employees have the ability to move into higher jobs.
The board annually reviews reports on its managers, assessing if they will be ready to move into a higher position in one year, in one to three years, or in three to five years.
But it has been hard for any executive to be groomed to be CEO because so many have been coming and going.
Consider: Out of the 22 corporate executives at the senior vice president level or higher appointed during Braly's tenure, half have left or been fired.
In addition, of the five top executives at WellPoint when Braly became CEO, only one - DeVeydt - remained a year later.
Several WellPoint executives, such as company veteran
"Wellpoint seems to be a company that eats its own young," Skolnick said.
Name game
Of the outside contenders for Braly's job, the name mentioned most often among current and former employees of WellPoint is
WellPoint acquired
Also mentioned frequently is
Another name mentioned is
It's the combination of
"WellPoint is a particularly funny animal in the insurance universe," Myers said, noting that the company has dominate market share in the 14 states where it operates
Yet the 2010 health reform law is forcing WellPoint to extend its operations nationally - through health insurance exchanges and through expanded government health plans in every state - while at the same time making it harder to make money on its Blues plans.
Myers, who is friends with Williams, said he would be perfect for the job - if WellPoint's board can persuade him to "get back in the frying pan." Williams could not be reached for comment.
"Ron is an exceptionally talented executive in that role," Myers said, adding that Williams has "tremendous experience as to what to do when you're Blue and what to do when you're not Blue."
Because many WellPoint employees and alumni doubt that either Williams or Boudreaux would take the helm of WellPoint, speculation has focused more on Snow.
Also, some have speculated
That speculation does not mean that two internal candidates, DeVeydt and Goulet, won't get a serious look from WellPoint's board.
Both are described by former WellPoint executives as "super talented," and both are known to
DeVeydt, 42, became chief financial officer on
Braly brought Goulet to WellPoint in
But investors have sent a clear message that they do not want more of the same, and naming either DeVeydt or Goulet as CEO would send exactly that signal, said
"It's hard for them to disassociate entirely from the CEO reign of Angela, because they were very integral to her management team," Gupte said. "A lot of
Copyright: | (c) 2012 IBJ Corporation |
Wordcount: | 1428 |
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