- After 14 years on the job
- Praise and thanks for Fetter
- Search for a successor
- Fetter made a lengthy statement and said 71 words
(exechange) — Dallas, Texas, August 31, 2017 — Trevor Fetter, chief executive of Tenet, leaves. As announced by Tenet Healthcare Corporation in a news release and in a regulatory filing published on Thursday, August 31, 2017, Trevor Fetter leaves the post as Chief Executive Officer at the healthcare services company in a surprising move after 14 years on the job, effective at the earlier of March 15, 2018 or when a successor is appointed.
It is the end of an era.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, only 35 percent of the CEOs who departed over the past twelve months left after more than ten years. Overall, the average tenure of those who left was 8.7 years, according to data compiled by exechange.
Tenet will undertake a search for a successor.
“Driving operational and financial performance”
The management change is explained as follows. Tenet said in a fairly blunt statement: “The changes announced today will ensure Tenet remains focused on providing high quality care to patients, innovating in ways that meet the demands of today’s healthcare market, and driving operational and financial performance in a manner that maximizes shareholder value.”
Precise information about the future plans of Fetter was not immediately available.
“Step down/will depart from the Company due to a not for cause termination of his employment”
Tenet said: “Chairman and CEO Trevor Fetter will step down from his roles as director and chief executive officer at the earlier of March 15, 2018 or when a successor is appointed. Current independent lead director Ronald A. Rittenmeyer will become executive chairman effective immediately. In that role, Mr. Rittenmeyer will serve as the senior-most executive at the company.”
Tenet further said: “On August 31, 2017, the Board approved a transition plan whereby Trevor Fetter, the Company’s Chief Executive Officer and Chairman of the Board, will depart from the Company due to a not for cause termination of his employment, effective as of the earlier of the date a new Chief Executive Officer commences employment with the Company, March 15, 2018 or an earlier date as determined by the Board.”
Share price decline
The change follows a sharp decline in the share price of Tenet Healthcare Corporation since June 2015.
Glenview holds 17.8 percent stake
Glenview Capital Management, LLC reported a 17.8 percent stake in Tenet Healthcare Corporation as of June 29, 2017. Glenview is a hedge fund.
On the job as CEO since 2003
Fetter was named Tenet’s president in November 2002, and was appointed chief executive officer in September 2003 and chairman in May 2015.
From March 2000 to November 2002, Fetter was chairman and chief executive officer of Broadlane, Inc.
From October 1995 to February 2000, he served in several senior management positions at Tenet, including chief financial officer.
Fetter began his career with Merrill Lynch Capital Markets, where he concentrated on corporate finance and advisory services for the entertainment and healthcare industries.
In 1988, he joined Metro-Goldwyn-Mayer, Inc., where he had a broad range of corporate and operating responsibilities, rising to executive vice president and chief financial officer.
Fetter holds a bachelor’s degree in economics from Stanford University and an M.B.A. from Harvard Business School.
Under the transition plan and effective immediately, Fetter will no longer serve as the principal executive officer of the Company and was removed as Chairman of the Board.
Fetter will remain an employee of the Company and will retain the title of Chief Executive Officer, reporting to the Executive Chairman, and will remain a director of the Company for a transition period until the departure date.
Read the full story in the exechange report 36.2017 ($).