- After about four years in the position
- Praise and thanks for Kramer
- Haywood Miller taking over temporarily
- Search for a successor
- Kramer spoke at length and said 189 words
(exechange) — Gaithersburg, Maryland, June 27, 2023 — Bob Kramer, chief executive of Emergent, leaves his position. As announced by Emergent BioSolutions Inc. in a news release and in a regulatory filing published on Tuesday, June 27, 2023, Robert G. (Bob) Kramer has left his post as chief executive officer at the specialty biopharmaceutical company, after about four years in the role, effective June 24, 2023.
Emergent will undertake a search for a successor.
Bob Kramer’s duties as CEO will be taken over temporarily by Haywood Miller, most recently Managing Director at Berkeley Research Group, as interim Chief Executive Officer.
“Return Emergent to growth and enhance shareholder value”
Emergent did not give an explicit reason for Bob Kramer’s departure from the CEO post. Zsolt Harsanyi, Ph.D, chairman of the Board of Directors, stated: “2023 is a year of transformation for Emergent. We have delivered on a number of key objectives over the first half of the year, including the sale of our travel health business, amending and extending our credit facility and securing a contract extension from the U.S. government for procurement of ACAM2000 to address the threat of smallpox through the Strategic National Stockpile, and now is the right time to pivot to the next phase of this transformation. Mr. Miller brings a wealth of financial and strategic turnaround experience, making him the right candidate to lead Emergent as we continue executing against our 2023 priorities and conduct a search to identify a permanent CEO who can guide the Company through its continued transformation, return Emergent to growth and enhance shareholder value.”
Precise information regarding Bob Kramer’s future plans was not immediately available.
“Retire/resign”
Emergent said: “Robert G. Kramer Sr. has informed the Board of Directors of his intention to retire from Emergent. Mr. Kramer will step down from his role as President and CEO of Emergent and as a member of the Company’s Board, effective immediately.”
Emergent further said: “On June 23, 2023, Robert G. Kramer Sr. notified the Board of Directors (the “Board”) of Emergent BioSolutions, Inc. (the “Company”) of his intent to retire from the Company on August 1, 2023 and to resign from his positions as President and Chief Executive Officer and as a director, effective June 24, 2023.”
“Not the result of any disagreement”
Emergent stated, regarding the change: “Mr. Kramer’s resignation is not the result of any disagreement with the Company with respect to any matter relating to financial controls, financial statements or any other operations, policies or practices of the Company.”
Share price decline since June 2020
The announcement follows a decline in Emergent BioSolutions Inc.’s share price of 90% since June 2020.
In the position of CEO since 2019
Bob Kramer became CEO of the Company in 2019.
In order to ensure a smooth transition, Kramer will serve as an advisor to the Company until August 1, 2023.
Kramer has served as the Company’s president and chief executive officer since April 2019 and served as the Company’s president and chief operating officer from March 2018 to March 2019.
Previously, he also served as the Company’s executive vice president, administration, chief financial officer and treasurer from September 2012 until his promotion to president and chief operating officer in March 2018.
Kramer first joined the Company in 1999 as the Company’s chief financial officer.
From 1999 until his prior retirement in 2010, he held various executive positions with the last being president of Emergent Biodefense Operations Lansing.
Kramer returned to the company in 2011 as the interim head of the biosciences division, and then as interim executive vice president, corporate services division.
Prior to joining the Company in 1999, Kramer held various financial management positions at Pharmacia Corporation, which subsequently merged with the Upjohn Company in 1995 and eventually became part of Pfizer Inc.
Kramer currently serves on the Board of Directors of the U.S. Chamber of Commerce and the National Association of Manufacturers.
Kramer holds an M.B.A. from Western Kentucky University and a B.S. in industrial management from Clemson University.
189 words by Bob Kramer
In the news release announcing his departure as CEO of Emergent BioSolutions Inc., Bob Kramer received praise and thanks.
In announcing his departure, Bob Kramer spoke at length and said 189 words.
“Overcame obstacles”
Bob Kramer stated: “For 24 years, Emergent has created solutions to the world’s most pressing public health threats, delivering medical countermeasures to protect against biological agents like anthrax and smallpox, serious infectious diseases like COVID-19 and Ebola, and the opioid epidemic. Having joined the company shortly after its inception in 1998, I have led and contributed to many teams’ efforts to seize opportunities and overcame obstacles. Together, we have advanced important clinical programs, achieved organic growth and expanded the company through key acquisitions. We did all of this while creating a foundation for corporate social responsibility and nurturing a healthy workforce – all in service of the company’s mission to protect and enhance life. It has been a privilege to lead this dedicated and passionate team. I leave Emergent with confidence in the strong culture of quality and compliance, embedded core values, and focus on the mission, which will ensure Emergent’s continued success and impact on its patients, customers, and communities. Emergent no doubt will further shape and support governments’ preparedness and response efforts to help keep people safe, and I am proud and grateful to have been a part of that journey.”
41% 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 316 CEO departures in the Russell 3000 Index evaluated over the past 12 months (June 27, 2022, to June 26, 2023), the average Push-out Score was 6.2, 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 41% 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 Bob Kramer’s move determined
The Push-out Score regarding Bob Kramer’s move is explained point by point in the exechange report.
exechange reached out to Emergent and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 27.2023 ($).