- Push-out Score determined
- After about five and a half years in the position
- Praise and thanks for Flanders
- Fran Soistman taking over
- Flanders said 83 words
(exechange) — Santa Clara, California, September 23, 2021 — Scott Flanders, chief executive of EHealth, leaves. As announced by EHealth Inc. in a news release and in a regulatory filing published on Thursday, September 23, 2021, Scott N. Flanders leaves his post as chief executive officer at the online health insurance marketplace, after about five and a half years in the role, effective October 31, 2021.
Scott Flanders’s duties as CEO will be taken over by Fran Soistman, a former executive vice president at CVS Health.
The fact that Scott Flanders’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.
In general, an outsider does not have the constraints of an insider when it comes to leading painful changes or making unpopular decisions.
The Company also announced that Dale Wolf, a member of the eHealth Board of Directors, has been named Chair of the Board. Wolf has significant managed care and health insurance industry experience, having served as Chair of the Board for Molina Healthcare and as Chief Executive Officer of several healthcare companies.
“Achieve a new phase of growth and shareholder value creation”
EHealth did not give an explicit reason for Scott Flanders’s departure from the CEO post. Dale Wolf, Chair of the Board, said: “Fran brings an extensive record of driving performance, meeting challenges head-on and exceeding expectations. He also has strong health insurance carrier relationships and an in depth understanding of their evolving priorities, which are critical to eHealth’s business. The Board believes that he is the right person with the right expertise to lead eHealth forward, and we are confident that he will enable eHealth to achieve a new phase of growth and shareholder value creation.”
Precise information regarding Scott Flanders’s future plans was not immediately available.
“Retire/resignation”
EHealth said: “Fran Soistman has been appointed Chief Executive Officer and member of the eHealth Board of Directors, effective November 1, 2021. Mr. Soistman succeeds Scott Flanders, who intends to retire as CEO and as a member of the eHealth Board of Directors at that time.”
EHealth further said: “On September 22, 2021, the Board of Directors (the “Board”) of eHealth, Inc. (the “Company”) accepted the resignation of Scott Flanders from his positions as chief executive officer and as a member of the Board of the Company, effective October 31, 2021.”
“Mr. Flanders did not express any disagreement”
“In submitting his resignation, Mr. Flanders did not express any disagreement on any matter relating to the Company’s operations, policies or practices,” EHealth said.
Share price decline since September 2020
The announcement follows a decline in EHealth Inc.’s share price of 42% since September 2020.
In the position of CEO since 2016
Scott Flanders became CEO of the Company in 2016.
To help ensure a seamless transition, Flanders will remain with the Company in a consulting capacity through the end of 2021.
Scott Flanders has served as the Company’s chief executive officer since May 2016 and as a member of the Company’s board of directors since February 2008.
Prior to becoming the Company’s chief executive officer, Flanders served as the chief executive officer of Playboy Enterprises, Inc., a media and lifestyle company, from July 2009 to May 2016, and as a member of its board of directors from July 2009 to December 2019.
Previously, Flanders served as the president and chief executive officer of Freedom Communications, Inc., a privately-owned media company, from January 2006 to June 2009, and as a member of its board of directors from 2001 to 2009.
From 1999 to July 2005, Flanders served as the chairman and chief executive officer of Columbia House Company, a direct marketer of music and video products, which was acquired by Bertelsmann AG in July 2005.
Flanders holds a B.A. degree in economics from the University of Colorado and a J.D. from Indiana University.
He is also a certified public accountant.
Flanders serves as a member of the board of directors of 890 5th Avenue Partners, Inc.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the pressure surrounding Scott Flanders’s move on a scale of 0 to 10.
exechange reached out to EHealth and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 39.2021 ($).