- After about a year and a half in the position
- Yin Ho taking over temporarily
- Search for a successor
(exechange) — Chicago, Illinois, December 8, 2023 — Rick Poulton, chief executive of Veradigm, leaves his position. As announced by Veradigm Inc. in a news release and in a regulatory filing published on Friday, December 8, 2023, Richard J. (Rick) Poulton has left his post as chief executive officer at the healthcare technology company, after about a year and a half in the role, effective December 6, 2023.
Generally speaking, it raises questions when a CEO leaves his post abruptly and after a short tenure.
Veradigm will undertake a search for a successor.
Rick Poulton’s duties as CEO will be taken over temporarily by Shih-Yin (Yin) Ho, most recently President at Glimpse LLC, as interim Chief Executive Officer.
Already a director
Ho has already been a member of the board of directors of Veradigm. 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, Ho understands the expectations and dynamics of the board and has knowledge of Veradigm’s organization, risk-management practices and strategy.
Rick Poulton’s move coincides with a management shake-up also involving the position of Chief Financial Officer.
“Investigation”
The management change is explained as follows. Veradigm stated: “These changes result from the Audit Committee’s previously disclosed, ongoing independent investigation, which is being conducted by legal counsel and relates to the Company’s financial reporting and internal controls over financial reporting and disclosure controls. The potential impact, if any, to the financial statements for previously reported periods as a result of the independent investigation is under review by the new leadership team.”
Precise information regarding Rick Poulton’s future plans was not immediately available.
“Resigned”
Veradigm said: “Chief Executive Officer Richard J. Poulton has resigned at the request of the Board from his role as CEO and has stepped down from the Board.”
Veradigm further said: “As a result of the previously disclosed, ongoing independent investigation by the Audit Committee of the Board that relates to the Company’s financial reporting, internal controls over financial reporting and disclosure controls, on December 6, 2023, Richard J. Poulton and Leah S. Jones each resigned at the request of the Board from their positions as Chief Executive Officer and Chief Financial Officer, respectively, effective immediately. Mr. Poulton also stepped down from the Board, effective December 6, 2023. Ms. Jones will continue serving the Company as a consultant for an initial period of six months.”
Share price decline since May 2022
The announcement follows a decline in Veradigm Inc.’s share price of 38% since May 2022. May 2022 is the month in which Poulton’s tenure as CEO began.
In the position of CEO since 2022
Rick Poulton became CEO of the Company in 2022.
Richard Poulton was appointed Chief Executive Officer effective as of May 6, 2022.
Prior to that, Poulton served concurrently as both the Company’s President and Chief Financial Officer since March 2020.
Poulton served as the Company’s President since October 2015.
Furthermore, Poulton served as the Company’s Chief Financial Officer from October 2012 to March 2016 and as an Executive Vice President from October 2012 to September 2015.
From 2006 to 2012, Poulton served in various positions at AAR Corp. (AIR), a provider of products and services to commercial aviation and the government and defense industries.
His most recent role at AAR Corp. was Chief Financial Officer and Treasurer.
Poulton also spent more than ten years at UAL Corporation in a variety of financial and business development roles, including Senior Vice President of Business Development as well as President and Chief Financial Officer of its client-focused Loyalty Services subsidiary.
No statement by Rick Poulton
The announcement of his departure as CEO does not include a statement by Rick Poulton.
Push-out Score for Rick Poulton’s move determined
The Push-out Score indicates on a scale of 0 to 10 how likely it is that Rick Poulton was pushed out or felt pressure to leave his position.
exechange reached out to Veradigm and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 50.2023 ($).