- After 27 years in the position
- Good wishes for Hagerman
- Jeff Park taking over in the interim
- Search for a successor
- Hagerman spoke at length and said 139 words
(exechange) — Flint, Michigan, January 5, 2018 — Phil Hagerman, chief executive of Diplomat, leaves. It is an abrupt change. As announced by Diplomat Pharmacy, Inc. in a news release on Friday, January 5, 2018, Philip R. (Phil) Hagerman leaves his post as Chief Executive Officer at the provider of specialty pharmacy services after 27 years in the position, effective immediately.
It is the end of an era.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who departed over the past twelve months was 8.8 years, according to data compiled by exechange. Only 8 percent of the CEOs who departed over the past twelve months left the position after more than 20 years.
Diplomat will undertake a search for a successor.
Hagerman’s duties will be taken over in the interim by Jeff Park, a former Chief Operating Officer at OptumRx.
The Board has appointed Ben Wolin, independent Lead Director, as Chairman of the Diplomat Board, effective immediately.
Already a director
Park is already a director of Diplomat. Often a board member is a last resort, someone who is turned to in desperation when a company cannot find suitable candidates. On the other hand, directors-turned-executives represent a blend of outsider and insider.
They don’t have the constraints of a pure insider when it comes to leading painful changes or making unpopular decisions, and they have more company knowledge than a pure outsider.
Having been a director, Park understands the expectations and dynamics of the board and has knowledge of Diplomat’s organization, risk-management practices and strategy.
“There remains work ahead”
A reason for Hagerman’s sudden departure from the CEO post was not explicitly given. Ben Wolin, Chairman of the Diplomat Board, said: “Diplomat has a significant opportunity to enhance shareholder value by building on our recent acquisitions and accelerating our evolution from a specialty pharmacy provider to a broader health care company. While we have made meaningful progress over this past year, there remains work ahead to build on the growth plans we have in place.”
Precise information about Hagerman’s future plans was not immediately available.
Diplomat said: “Mr. Park’s appointment follows the retirement of Phil Hagerman, co-founder of Diplomat in 1975 and Chief Executive Officer and Chairman of Diplomat since 1991.”
“With the support of the Board of Directors”
Diplomat further said: “Mr. Hagerman’s decision to retire as CEO was made with the support of the Board of Directors.”
Share price decline
The change follows a decline in the share price of Diplomat Pharmacy, Inc. since July 2015.
In the position of CEO since 1991
Philip R. Hagerman has served as the Company’s Chief Executive Officer, a director, and the Chairman of the Board of Directors since 1991.
Hagerman co-founded the Company with his father in 1975.
Hagerman will remain as a member of the Diplomat Board and become Chairman Emeritus.
Hagerman will serve as a consultant to the Company during the CEO search process to ensure a smooth transition.
As a consultant, Hagerman will advise the management team on the execution of Diplomat’s growth plans and the integration of recent acquisitions.
Read the full story in the exechange report 2.2018 ($).