ST. LOUIS COUNTY, Mo. — Centene Corp. (NYSE: CNC) said Tuesday that its chairman and CEO, Michael Neidorff, plans to retire from his CEO role next year, as it also announced changes to its board and an agreement with an activist investor.
After retiring as CEO, Neidorff will serve as executive chairman until the end of 2022, the Clayton-based provider of managed health care plans said. Centene's board, following changes to its roster announced Tuesday, will appoint a new CEO after looking at internal and external candidates with the help of an external search firm.
"It has been one of the greatest privileges of my life to serve as CEO of Centene," Neidorff said Tuesday in a statement. "I am confident our company is well positioned to ensure a smooth transition. With the value creation plan in place, the governance enhancements announced today, and our strong leadership team, I have never been more confident in the future success of this company."
The company also said Tuesday in a regulatory filing that it had reached an agreement with activist investor Politan Capital Management, a hedge fund formed this summer by Quentin Koffey, whose successful activist campaigns include changes at home improvement retailer Lowe's Cos. in 2018. Politan, whose stake in Centene is worth about $900 million, had spoken with Centene about boosting the company's stock price and bringing on new board members, the Wall Street Journal reported last month.
As part of the agreement, the company will expand the board from 13 to 14 directors, and six directors will retire: Robert Ditmore, John Roberts and Tommy Thompson in 2022; and Neidorff, Orlando Ayala and Richard Gephardt at or before the company's 2023 annual meeting, according to the regulatory filing.
The board also will appoint five new directors, effective Jan. 5, 2022: Ken Burdick, Christopher Coughlin, Wayne DeVeydt, Theodore Samuels, and a fifth director to be agreed upon by Centene and Politan.
Burdick, former CEO of WellCare Health Plans until its January 2020 purchase by Centene, served as Centene's executive vice president of markets and products until his retirement Feb. 21 this year.
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