Dive Brief:
- Healthcare logistics firm Owens & Minor tapped its corporate treasurer and SVP Jonathan A. Leon to serve as interim CFO effective June 21, after finance chief Alexander J. Bruni resigned from his position at the company’s request, according to a securities filing.
- Bruni, 47, has served as the Richmond, Virginia-based company’s finance chief since October 2022, after joining the healthcare supplies and logistics supplier in April 2020, according to the filing. He resigned as CFO effective June 21, but will remain with the company until Sept. 5 to ensure a smooth transition, after which he will “depart to pursue opportunities outside of the Company,” according to the filing.
- Owens & Minor did not respond to requests for comment regarding why it had requested Bruni’s resignation.
Dive Insight:
Leon, 58, joined the company in 2017 as its SVP and corporate treasurer. Prior to Owens & Minor, he served as treasurer for ATM managed service provider The Brinks Company, according to the company filing.
Leon will receive a one-time equity award of restricted stock units with a value of $250,000 in association with his appointment as interim finance chief, in addition to his current compensation, according to the company filing.
In association with his resignation, Bruni will receive severance pay and benefits as outlined in the Fortune 500 healthcare company’s officer severance policy, according to the filing. This includes a lump-sum payment equal to 1.5 times Bruni’s current base salary of $525,000 plus his average actual bonus paid for the years 2023, 2022, and 2021, a $25,000 lump-sum payment relating to COBRA health premiums, and reimbursement for expenses relating to periods following his separation from the company.
According to the company’s latest proxy report filed in March, Bruni received total compensation of $2.02 million in 2023, including a salary of $528,180, compared to total compensation of $875,361 in 2022.
Bruni’s resignation follows other recent shifts to its executive team, with Owens & Minor appointing company alum Snehashish Sarkar as its chief information officer in early May, according to a securities filing.
The company’s executive leadership team will look to steer Owens & Minor through its plan to foster growth in key areas like its Patient Direct and Product & Health Services segments. For its Q1 2024 ended Mar. 31, Owens & Minor reported consolidated revenue of $2.6 billion, a 4% increase compared to the prior year period, according to its earnings report. The company also reported a net loss per share of $0.29.
Revenues for its Patient Direct segment — which provides products such as home respiratory or medical equipment for at-home care — rose 5% year-over-year to reach $638 million. Products and healthcare revenue, meanwhile, jumped 3% to nearly $2 billion.
The growth in its Patient Direct segment, which follows double-digit growth in previous quarters, demonstrates “the strength of our team and the effectiveness of our go-to-market strategies,” CEO and President Edward Pesicka said in a statement included in the company’s earnings release.
The company highlighted the expected impact of inflation for its full-year 2024 outlook, however, noting that its full-year guidance includes “current expectations regarding the impact of general economic conditions, including inflation, and the continuation of pressure on pricing and demand in our Products & Healthcare Services segment.”
For the full year, Owens & Minor is expecting revenue in the range of $10.5 billion to $10.9 billion.
As well as executive changes, the company may be moving its headquarters. Owens & Minor recently sold its Mechanicsville, Virginia headquarters to the Virginia Department of Transportation for $33.5 million, according to a May report by Virginia Business,.
