- Signs for push-out forces
- After about a year on the job
- Laud, praise and thanks for Hendrickson
- Search for a successor
- Hendrickson spoke at length and said 123 words
(exechange) — Dublin, Ireland, June 05, 2017 — John Hendrickson, chief executive of Perrigo, leaves. As announced by Perrigo Company plc in a news release and in a regulatory filing published on Monday, June 05, 2017, John T. Hendrickson leaves the post as Chief Executive Officer at the healthcare company in a surprising move after about a year on the job.
No company wants a CEO to flame out in the first years.
Hendrickson’s move comes 14 months after Laurie Brlas took over as chairman of Perrigo Company plc.
Hendrickson will remain with the Company until his replacement is appointed, as well as up to 60 days following to ensure a smooth and successful transition.
Hendrickson will continue to stand for election to Perrigo’s Board of Directors at the Company’s Annual General Meeting on July 20, 2017 and will step down from the Board upon the appointment of a new Chief Executive Officer.
Perrigo will undertake a search for a successor.
“Now is the right time for me to make this change”
The management change is explained as follows. Hendrickson said: “My decision to retire this year has not been an easy one, but now is the right time for me to make this change personally and professionally.”
Precise information about the future plans of Hendrickson was not immediately available.
Perrigo said: “Perrigo … today announced the forthcoming retirement of Chief Executive Officer John T. Hendrickson.”
Share price decline
The change follows a sharp decline in the share price of Perrigo Company plc since August 2015.
Starboard Value holds 6.72 percent stake
Starboard Value LP reported a 6.72 percent stake in Perrigo Company plc as of March 30, 2017. Starboard Value is a hedge fund.
Chaired by Laurie Brlas
Perrigo Company plc is chaired by Laurie Brlas.
Laurie Brlas has been a director of Perrigo since August 2003 and was appointed Chairman of the Board in April 2016.
Brlas served as Executive Vice President and Chief Financial Officer of Newmont Mining Corporation from September 2013 until October 2016.
On the job as CEO since 2016
John T. Hendrickson has been the Chief Executive Officer of Perrigo Company plc since April 24, 2016 and served as its President from October 22, 2015 to April 24, 2016.
On June 5, 2017, Perrigo Company plc (the “Parent”) announced the forthcoming retirement of John T. Hendrickson as the Chief Executive Officer of the Parent and the President of Perrigo Management Company, a Michigan corporation and a subsidiary of the Parent (the “Company”).
John Hendrickson was appointed as Chief Executive Officer in April 2016 and to the Board of Directors in June of 2016.
He served as President from October 2015 until April 2016.
He was formerly Executive Vice President, Global Operations & Supply Chain of Perrigo Company from March 2007 to October 2015; Executive Vice President and General Manager of Perrigo Consumer Healthcare from 2003 to 2007; Executive Vice President – Operations from 1999 to 2003; Vice President of Manufacturing from 1996 to 1999; Vice President of Customer Service from 1995 to 1996; Director of Engineering from 1993 to 1995; and Process Engineering Manager from 1989 to 1993.
Previously, Hendrickson held a leadership position working for Procter & Gamble.
At the time of Hendrickson’s appointment as Chief Executive Officer at Perrigo, Chairman Laurie Brlas had commented: “Aligned with our succession planning process, the Board of Directors has elevated John to Chief Executive Officer from President, where he led global operations and had responsibility for almost 70% of our employee base. John is an exceptional leader who is passionate about our mission, committed to our core values, and with his breadth of experience, is uniquely qualified to successfully lead Perrigo into the future. He has made exceptional contributions to the business during his 27 year tenure, including leading our U.S. Consumer Healthcare business, and we are confident that he has the industry expertise and the operational track record to continue to drive growth.”
Generally speaking, when a top manager announces to step aside with no successor available, it is a signal that the move was unexpected and too early.
Signs for push-out forces
It is not completely certain what forces eventually triggered John Hendrickson’s move.
The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the management change.
Read the full story in the exechange report 24.2017 ($).