- Push-out Score determined
- After less than two years in the position
- Praise and thanks for Paul
- Russell Ellison taking over
(exechange) — Wixom, Michigan, April 20, 2020 — Stuart Paul, chief executive of Rockwell Medical, leaves. As announced by Rockwell Medical Inc. in a news release and in a regulatory filing published on Monday, April 20, 2020, Stuart Paul has left his post as chief executive officer at the biopharmaceutical company after less than two years in the role, effective April 17, 2020.
The announcement of Stuart Paul’s move comes seven months after John P. McLaughlin took over as Chairman of Rockwell Medical, Inc.
Stuart Paul’s duties as CEO will be taken over by Russell H. Ellison, a former Chief Executive Officer of Promedior, Inc.
Already a director
Ellison is already a director of Rockwell Medical. Generally speaking, most director-turned-CEO appointments occur following a sudden resignation of the outgoing CEO and signal a lack of preparedness on the company’s part to groom internal talent. 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, Ellison understands the expectations and dynamics of the board and has knowledge of Rockwell Medical’s organization, risk-management practices and strategy.
“A more medically- and scientifically-driven company”
Rockwell Medical did not give an explicit reason for Stuart Paul’s departure from the CEO post. John P. McLaughlin, Chairman of the Board of Directors of Rockwell Medical, said: “Rockwell Medical is focused on transforming the treatment of iron deficiency and anemia around the world to improve outcomes for patients. To achieve that goal, we continue to develop into a more medically- and scientifically-driven company. Given that vision, we are pleased to appoint Russell as Chief Executive Officer to lead our company through its important next phase of growth, which will focus on leveraging the medical attributes of our ferric pyrophosphate citrate technology.”
Precise information regarding Stuart Paul’s future plans was not immediately available.
“Resigned”
Rockwell Medical said: “Stuart Paul has resigned as President and Chief Executive Officer and as a member of the Company’s Board of Directors.”
Rockwell Medical further said: “On April 17, 2020, Stuart Paul resigned as the President and Chief Executive Officer of Rockwell Medical, Inc. (the “Company”) and as a member of the board of directors of the Company (the “Board”) effective immediately.”
“Not the result of any dispute or disagreement”
“As a result of Mr. Paul’s resignation and the previously disclosed decision by Lisa Colleran not to stand for reelection at the Company’s 2020 Annual Meeting of Stockholders (the “Annual Meeting”), the size of the Board will be reduced to five directors effective as of the Annual Meeting. Mr. Paul’s decision was not the result of any dispute or disagreement with the Company on any matter relating to the Company’s operations, policies or practices,” Rockwell Medical said.
Share price decline
The announcement follows a decline in Rockwell Medical Inc.’s share price of 47% since September 2018.
Chaired by John P. McLaughlin
Rockwell Medical Inc. is chaired by John P. McLaughlin.
John P. McLaughlin has been a director since September 2019 and Chairman of the Board since October 2019.
In the position of CEO since 2018
Stuart Paul became CEO of the Company in 2018.
From 2007 to 2013, Paul worked at Gambro AB, a $2 billion global dialysis products company.
During his tenure, Paul was a key member of the senior leadership team and was responsible for running a variety of businesses, including its $150 million Asia-Pacific and $400 million Americas businesses, which he brought to significant new levels of revenue and profitability.
Following the $4 billion sale of Gambro AB to Baxter International, Paul led the integration of the combined $650 million Baxter-Gambro Renal business in Latin America, driving significant synergies, revenue and profit growth.
After his time at Gambro AB, Paul was with Quest Diagnostics for several years where he led the turnaround of the company’s $1.4 billion U.S. East Region laboratories, patient services and commercial business.
Most recently, Paul served as Corporate Officer and Vice President of Abbott Laboratories, where he facilitated integration of the recent Alere Inc. acquisition, while leading its largest global business unit with $600 million of revenues.
He holds a Master of Management degree from the Kellogg Business School at Northwestern University in Marketing and Finance, and a Bachelor of Arts degree in Chemistry from Duke University.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the pressure surrounding the management change on a scale of 0 to 10.
exechange reached out to Rockwell Medical and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 17.2020 ($).