- Push-out Score determined
- After around 21 years in the position
- Responsibilities redistributed
- Search for a successor
(exechange) — Wixom, Michigan, May 23, 2018 — Rob Chioini, chief executive of Rockwell Medical, leaves. It is an abrupt change. As announced by Rockwell Medical, Inc. in a news release published on Tuesday, May 22, 2018 and in a regulatory filing published on Wednesday, May 23, 2018, Robert L. (Rob) Chioini leaves his post as Chief Executive Officer at the biopharmaceutical company after around 21 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 12 months was 9.6 years, according to data compiled by exechange. Only 12 percent of the CEOs who departed over the past 12 months left the position after more than 20 years.
Chioini’s move comes two months after Benjamin Wolin took over as Chairman of Rockwell Medical, Inc.
Rockwell Medical will undertake a search for a successor.
The position of Chief Executive Officer is currently not filled. For the time being, Rob Chioini’s responsibilities are redistributed.
“To enhance the Company’s ability to execute on its plans for growth and best position it for future success”
Chioini’s sudden departure from the CEO post is explained as follows. Ben Wolin, Chairman of the Board, said in a fairly blunt statement: “Having completed a top to bottom review of our business, it was determined that a change in leadership at this time is in the best interests of all our key stakeholders, including shareholders, employees, patients and providers. The Board believes this leadership change is necessary to enhance the Company’s ability to execute on its plans for growth and best position it for future success.”
Precise information about Chioini’s future plans was not immediately available.
Rockwell Medical said: “The Board of Directors also announced that the Company’s President and Chief Executive Officer, Robert Chioini, has been terminated from his positions, effective immediately.”
Share price decline
The change follows a decline in the share price of Rockwell Medical, Inc. since July 2015.
Chaired by Benjamin Wolin
Rockwell Medical, Inc. is chaired by Benjamin Wolin.
On March 7, 2018, the Company’s Board of Directors appointed Benjamin Wolin as a director of the company. Wolin was also appointed Chairman of the Board.
In the position of CEO since 1997
Robert L. Chioini is a founder of the Company, has served as the Company’s Chairman of the Board since March 2000, has served as the Company’s President and Chief Executive Officer since February 1997, has been one of the Company’s directors since the Company’s formation in October 1996 and served as President of the Company’s predecessor, which he founded in January 1995.
Chioini has over 20 years of operational and sales experience in the dialysis industry.
Chioini has resigned as a member of the Board and will not stand for reelection at the 2018 Annual Meeting of Shareholders.
Push-out Score determined
The Push-out Score™ determined by exechange suggests that push-out forces have contributed to the change.
Read the full story in the exechange report 22.2018 ($).