Wright Medical's CEO Resigns
BY LAUREN UZDIENSKI, APRIL 5, 2011
Wright Medical announced this morning that CEO Gary Henley has resigned and SVP and CTO Frank Bono has been terminated over issues related to the company's compliance program. Chairman of the Board David Stevens has been named interim President and CEO.
The company announced few details in its press release, saying only that Mr. Henley tendered his resignation prior to a Board meeting to discuss corporate compliance. The company said that Frank Bono's termination was due to his "failing to exhibit appropriate regard for the Company's ongoing compliance program." The Board is working to find a permanent CEO to succeed Mr. Stevens, who has said he does not want to be considered for the position.
On September 30, 2010, Wright Medical paid $7.9 million and entered into a 12-month deferred prosecution agreement to settle a DOJ investigation into its consulting agreements. The company also entered into a five-year Corporate Integrity Agreement with the OIG, similar to deals reached by other orthopedics companies with the government.
The company says they do not expect 1Q:11 revenue and EPS to be affected by this announcement, and they anticipate top and bottom line to be in line with consensus. The stock is down about 10% so far in trading today.
