- After 14 years in the position
- Praise and thanks for Hernandez
- Mark Kent taking over temporarily
- Search for a successor
- Hernandez said 111 words
(exechange) — Miami, Florida, June 16, 2023 — Marlow Hernandez, chief executive of Cano Health, leaves his position. As announced by Cano Health Inc. in a news release on Friday, June 16, 2023, Marlow Hernandez leaves his post as chief executive officer at the primary care provider, after 14 years in the role, effective immediately.
Cano Health will undertake a search for a successor.
Marlow Hernandez’s duties as CEO will be taken over temporarily by Mark Kent, most recently Chief Strategy Officer at Cano Health Inc., as Interim Chief Executive Officer.
“Advance execution”
Cano Health did not give an explicit reason for Marlow Hernandez’s departure from the CEO post. Cano Health stated: “Cano Health, Inc. (“Cano Health” or the “Company”), a leading value-based primary care provider and population health company, today announced a change in its executive leadership intended to advance execution of the Company’s strategy for stockholder value creation.”
Precise information regarding Marlow Hernandez’s future plans was not immediately available.
“Resign”
Cano Health said: “Dr. Marlow Hernandez and the Company’s Board of Directors have agreed that Dr. Hernandez will resign immediately as CEO and will continue to serve on the Board.”
Share price decline since June 2022
The announcement follows a decline in Cano Health Inc.’s share price of 74% since June 2022.
In the position of CEO since 2009
Marlow Hernandez became CEO of the Company in 2009.
Marlow Hernandez served as the Chief Executive Officer of Cano Health since 2009 and as the Company’s Chairman from June 2021 to April 2023.
In April 2023, the Company separated the roles of Chairman of the Board and Chief Executive Officer, assigning the role of Chairman to Solomon Trujillo to allow Hernandez to focus his attention on his role as Chief Executive Officer, while remaining a director.
A native of Cuba, Hernandez immigrated to the U.S. with his family in 1993.
He received a BS in neuroscience from the University of Miami and a medical degree from Nova Southeastern University, from which he also received a master’s degree in business administration and public health.
In addition, he is a fellow of the American College of Physicians, a national organization of internists, who specialize in the diagnosis, treatment, and care of adults.
111 words by Marlow Hernandez
In the news release announcing his departure as CEO of Cano Health Inc., Marlow Hernandez received praise and thanks.
In announcing his departure, Marlow Hernandez said 111 words.
“Move forward, free of distractions, under the best possible CEO”
Marlow Hernandez stated: “It has been a privilege to lead Cano Health since the beginning and I am so proud of the platform we have built to measurably improve care for those who need it most. It is of the utmost importance to me that the Company move forward, free of distractions, under the best possible CEO. Mr. Kent is a proven healthcare operator, and having seen the progress he has already driven, I have tremendous confidence that under his leadership the Company will continue to deliver the quality care our patients have come to expect and capitalize on the massive market opportunity for value-based care as the Board seeks the optimal permanent successor.”
40% of CEOs are forced out or fired
When CEO departures are announced, exechange determines the Push-out Score on a scale of 0 to 10 to assess how likely it is that the chief executive was pushed out or felt pressure to leave the position, with 0 being most likely a voluntary move and 10 being most likely a forced exit. Anything over a 5 indicates that there are valid reasons to believe an executive may have been pushed out.
Of the 313 CEO departures in the Russell 3000 Index evaluated over the past 12 months (June 16, 2022, to June 15, 2023), the average Push-out Score was 6.1, according to exechange data. References to conduct issues, disagreements and irregularities lead to the highest Push-out Scores. When performance issues, time with family or pursuit of other opportunities were cited as departure reasons, the average Push-out Scores were also significantly elevated.
Around 40% of the CEO departure events from the past 12 months received Push-out Scores of 8 or higher.
In other words, in the past 12 months, two in five departing CEOs were forced out or fired.
Push-out Score for Marlow Hernandez’s move determined
The Push-out Score regarding Marlow Hernandez’s move is explained point by point in the exechange report.
exechange reached out to Cano Health and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 25.2023 ($).