WellPoint CEO Quits

Investors have called for the CEO of WellPoint Inc. (NYSE: WLP) to step down because of poor earnings, a loss of customers, and a falling share price. Today, those investors got their way

The company said

it is actively searching for a candidate to succeed Angela F. Braly as the President and Chief Executive Officer of WellPoint, who has stepped down from those positions today. The Board of Directors has established a search committee to consider both internal and external candidates, with the assistance of a search firm.

In the interim, John Cannon, the Company’s Executive Vice President, General Counsel, Corporate Secretary and Chief Public Affairs Officer, will serve as interim President and CEO. WellPoint also announced that Jackie M. Ward, WellPoint’s Lead Director, has been named the Non-Executive Chair of the Board of Directors effective immediately.

Ms. Ward commented, “Our Board continues to believe that time will prove the wisdom of potentially transformative actions taken under Angela’s leadership, from the sale of the pharmacy benefit management business to Express Scripts to the recent and proposed acquisitions of CareMore, 1-800-CONTACTS and Amerigroup. But now is the right time for a leadership change. We believe the remaining executive team is dynamic and strong, with great potential to drive WellPoint’s future success, and John Cannon in particular is the right person to lead our most important initiative, which is the completion of the Amerigroup transaction. John has reported to the Board that he does not wish to be considered for the permanent CEO position.”

Douglas A. McIntyre