Zimmer Biomet CEO David Dvorak leaves abruptly

  • Push-out Score suggests push-out forces
  • After around ten years on the job
  • Accolades, praise, thanks and good wishes for Dvorak
  • Dan Florin taking over in the interim
  • Search for a successor
  • Dvorak spoke at length and said 78 words

(exechange) — Warsaw, Indiana, July 11, 2017 — David Dvorak, chief executive of Zimmer Biomet, leaves. It is an abrupt change. As announced by Zimmer Biomet Holdings, Inc. in a news release and in a regulatory filing published on Tuesday, July 11, 2017, David C. Dvorak leaves the post as Chief Executive Officer at the medical device company in a surprising move after around ten years on the job, effective immediately.

It is the end of an era.

Zimmer Biomet will undertake a search for a successor.

Dvorak’s duties are taken over in the interim by Dan Florin, currently Chief Financial Officer at Zimmer Biomet Holdings, Inc.

No reason given

In the announcement, Zimmer Biomet did not explicitly explain the obviously compelling reason for Dvorak’s sudden move, leaving room for speculation.

Precise information about the future plans of Dvorak was not immediately available.

Alarm signal

Generally speaking, it is often an alarm signal for stockholders when a CEO leaves the post abruptly and without a reasonable explanation.

“Stepped down”

Zimmer Biomet said: “David C. Dvorak has stepped down as President and Chief Executive Officer and a member of the Board of Directors, effective today.”

Share price rise since February 2009

The change follows a rise in the share price of Zimmer Biomet Holdings, Inc. since February 2009.

Chaired by Larry C. Glasscock

Zimmer Biomet Holdings, Inc. is chaired by Larry C. Glasscock. He has been Non-Executive Chairman since May 2013.

On the job as CEO since 2007

David Dvorak was appointed President and Chief Executive Officer and a member of the Board of Directors of the Company in May 2007.

He championed Zimmer’s acquisition of Biomet, positioning the combined Zimmer Biomet as a global leader in musculoskeletal healthcare.

Prior to his appointment as President and Chief Executive Officer, Dvorak served as Group President, Global Businesses and Chief Legal Officer from December 2005.

From October 2003 to December 2005, he served as Executive Vice President, Corporate Services, Chief Counsel and Secretary, as well as Chief Compliance Officer.

Dvorak joined the Company (then Zimmer) as Senior Vice President, Corporate Affairs and General Counsel in December 2001.

Before joining Zimmer, he served as Senior Vice President, General Counsel and Corporate Secretary of STERIS Corporation.

Earlier in his career, he practiced corporate law, focusing on mergers and acquisitions and on securities law.

He holds a Bachelor of Science in Business Administration (Finance) from Miami University (OH) and a J.D., magna cum laude, from Case Western Reserve University School of Law, where he was elected to the Order of the Coif.

To assist with the transition, Dvorak will serve in an advisory capacity to the Company for a period of time.

Unexpected

As a general rule, when a top manager announces to step down with no permanent successor in place, it’s a signal that the move was unplanned and too early.

Push-out Score suggests push-out forces

It is not completely certain what forces eventually triggered David Dvorak’s sudden 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 29.2017 ($).