- After about four and a half years in the position
- Praise and thanks for Sherman
- Mike Andriole taking over
- Sherman will remain as Chairman at Chimerix
- Sherman said 123 words
(exechange) — Durham, North Carolina, June 27, 2023 — Mike Sherman, chief executive of Chimerix, leaves his position. As announced by Chimerix Inc. in a news release and in a regulatory filing published on Tuesday, June 27, 2023, Michael A. (Mike) Sherman leaves his post as chief executive officer at the biopharmaceutical company, after about four and a half years in the role, effective August 1, 2023.
Mike Sherman’s duties as CEO will be taken over by Michael T. (Mike) Andriole, currently Chief Business Officer and Chief Financial Officer at Chimerix Inc.
“Continuity”
The management change is explained as follows. Martha Demski, Board Chair of Chimerix, stated: “The Board has been thoughtful in planning this succession, ensuring ongoing strong leadership with the continuity of an accomplished management team.”
Sherman will remain as Chairman at Chimerix
Chimerix stated: “Mr. Andriole replaces Mike Sherman, who is retiring from his role as Chief Executive Officer and will become Chairman of the Board of Directors. Martha Demski, the current Board Chair, will assume the role of Lead Independent Director. These appointments will be effective on August 1, 2023.”
“Retire”
Chimerix said: “Michael Sherman intends to retire as the Company’s President and Chief Executive Officer.”
Share price decline since June 2021
The announcement follows a decline in Chimerix Inc.’s share price of 84% since June 2021.
In the position of CEO since 2019
Mike Sherman became CEO of the Company in 2019.
Sherman joined Chimerix in April 2019 as Chief Executive Officer.
Before joining Chimerix, he served as Chief Executive Officer of Endocyte, Inc. from June 2016 until its $2.1 billion acquisition by Novartis AG in December 2018.
Prior to that, Sherman served as Endocyte’s Chief Financial Officer from October 2006 to February 2017 and its Chief Operating Officer from June 2014 to June 2016, where he helped lead Endocyte through its initial public offering and subsequent financings.
Prior to joining Endocyte, Sherman served in various executive roles, including as vice president of finance and strategic planning for Guidant Corporation, a cardiovascular device manufacturer acquired by Boston Scientific Corporation.
Sherman holds a B.A. in economics from DePauw University and an MBA from the Tuck School of Business at Dartmouth, graduating as a Tuck Scholar.
Sherman also currently serves on the Board of Directors of Werewolf Therapeutics. Sherman has served on the Boards of Directors at Biospecifics Technologies, Inc. from April 2020 until the company’s acquisition by Endo Pharmaceuticals in December 2020, Mead Johnson Nutrition Company from March 2015 until the company’s acquisition by Reckitt Benckiser in June 2017, and the Children’s Museum of Indianapolis from January 2012 until December 2022 where he served as Chairman.
123 words by Mike Sherman
In the news release announcing his departure as CEO of Chimerix Inc., Mike Sherman received praise and thanks.
In announcing his departure, Mike Sherman said 123 words.
“Instrumental in repositioning Chimerix”
Mike Sherman stated: “Mike Andriole has been instrumental in repositioning Chimerix. I am confident he is the right leader to continue to successfully execute our growth strategy, which we expect to yield important new medicines for patients and to create significant value for shareholders. With the ACTION trial well underway, I will work closely with the management team to ensure a smooth transition and look forward to remaining engaged as Chair to maximize value and bring this and future opportunities to fruition… I would also like to thank Martha for her leadership as Board Chair, a position she has held since 2018. As Lead Independent Director she will provide another element of continuity, while playing an important governance role continuing to support the interest of shareholders.”
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 Mike Sherman’s move determined
The Push-out Score regarding Mike Sherman’s move is explained point by point in the exechange report.
exechange reached out to Chimerix and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 27.2023 ($).