Dive Brief:
- Healthways CEO Ben Leedle Jr. has been terminated without cause, according to an SEC filing.
- Last Friday, Leeding stepped down from his position and resigned from Healthway's board of directors.
- Alfred Lumsdaine, the company's executive vice president and CFO, will take his place on an interim basis.
Dive Insight:
Although the company declined to comment on Leedle's departure, Heathways has been under pressure from shareholders who want a greater voice in governance. In January of 2014, managing member Conan Laughlin wrote a letter to Heathway's Board of Directors saying that Heathway shareholder North Tide Capital was "shocked by the Board's blatant laissez-faire attitude toward the need for change at Healthways and unwavering support for CEO Ben Leedle despite the substantial value destruction that shareholders have suffered during his tenure." Among North Tide Capital's chief compaints was that Leedle "failed to meet his financial performance targets in six of the ten years he has led the Company."
CEOs need to be aware that can be held accountable not only to their Board of Directors, but to their shareholders, as well. This was not the first complaint lodged against Leedle by North Tide Capital, and is unclear what, if anything, he did to try to mend fences.