Friday, 08 June 2018 07:33

Breaking News: Athenahealth's CEO Jon Bush Steps Down Under Growing Pressure Featured

Written by
Rate this item
(4 votes)

Athenahealth's CEO Jon Bush Steps Down Under Growing Pressure

Cloud-based software platform for medical providers, Athenahealth is in turmoil. CEO and co-founder Jonathan J. Bush, Jr., 49, stepped down as President, CEO and Board Member. He had been replaced as Chairman last year by Jeff Immelt

The company is fighting a growing pressure from takeover bid – with a cash offer of $160 per share from Paul Singer's activist hedge fund Elliott Management. Elliott, which owns some 9% of athenahealth’s stock sent the offer in early May and in mid-May Janus Henderson Group flexed its nearly 12% share of the company’s stock by saying that a formal sale process is in the best interest of shareholders. 

Last month, he acknowledged that he had violently assaulted his former wife—disturbing episodes from a 2006 custody battle. In addition, he is facing several sexual misconduct allegations from some of athenahealth’s   female employees.

However, the company has initiated a process to explore strategic alternatives. This review might result in a merger, a sale involving the Company or remaining independent, though there’s no assurance from the board yet on any such matter.   

No interim CEO has been named and the Board has initiated a search process to identify qualified CEO candidates.  CFO Marc Levine, 44, will “assume greater day-to-day operational responsibilities,” according to the company’s announcement. 

Board Chairman Jeff Immelt, 62, who is a former GE Chair and CEO, has been appointed Executive Chairman. Dr. Amy Abernethy, 48, will be advising the executive leadership team on data strategy within her capacity as a board member.

Date: June 8, 2018

Read 476 times
Dora Vell

Dora Vell is the Managing Partner of Vell Executive Search, a boutique executive search firm in Boston focused on recruiting technology executives and board members. Vell has successfully completed numerous board member and C-level executive searches, including CEOs, COOs, CIOs, and Vice Presidents - at both public and private companies.

Prior to founding the firm in 2005, Vell was a Partner at Heidrick & Struggles' Technology practice for seven years.  Before her career in executive search, she worked at IBM for 11 years, managing software engineering organizations of 100 people and software sales organizations with revenues of $150 million. She has also served as an executive assistant to the CEO of IBM Canada for one year.

Vell holds seven worldwide software patents. She has published several Business of Leadership reports on governance and leadership and has been quoted in numerous articles including The Wall Street Journal, Forbes, Business Week, Fortune, Agenda Week, MSNBC, Mass High Tech, the OPUS for the World Economic Forum, Boston Business Journal, The Globe & Mail, CIO Magazine, and IEEE. She also has been a featured speaker on leadership at numerous conferences and at Columbia University's MBA program.

Vell is a member of the National Association of Corporate Directors (NACD), the Boston CEO Roundtable. She has served on the boards of Framingham State, Entrepreneur's Organization, Goodwill, Mary Centre for developmentally handicapped adults, garage.ca, and RBC Capital Partners.

She has received an MBA from the University of Toronto, a Master in Computer Science from the University of Waterloo, and a Bachelor in Computer Science from Carleton. She has also completed the MIT Entrepreneurial Master’s program.

www.vell.com/

Leave a comment