Molina Healthcare, ex-CEO Mario Molina, who was recently sacked by the company, is still onboard as a member of board of directors. Company shareholders kept faith in Molina and voted him to stay on. Also staying back, is Mario’s brother, John Molina who was also voted to be kept in the board of directors.
The long-beach based company has filed papers with the US Securities and Exchange Commission, disclosing the details of its board meeting.
John has met the same fate as that of Mario, having being sacked in May 2017, from the post of company’s CFO. Molina brothers, Mario and John, happens to be the sons of the company’s founder, C. David Molina, who died almost 20 years ago.
The shareholder also elected Ronna E Romney and Dale B Wolf, extending their stay until 2020 in the board of directors.
The case of Molina brothers
The re-election of Molina brothers is an unexpected one since the company has recently fired Mario in the first week of May reflecting on company disappointing financial performance. Mario Molina has been the CEO of the company since 1996.
Long Beach, Calif.-based Molina Healthcare’s recently fired CEO J. Mario Molina, MD, will stay on the board of directors, according to a Press-Telegram report. Company shareholders voted to keep Dr. Molina on the board, in addition to re-electing two other board members.
Molina Healthcare recent financial performance
In the 4th quarter of 2016 the company reported $91 million net loss. However, the company’s first quarter of 2017 saw a positive growth with net income of $77 million. It is thrice the amount it made in the first quarter of 2016.
Joseph W White has been chosen as the permanent CFO of the company and he will also act as an interim president and CEO. Earlier in the month, the board had selected Wolf as the Chairman of the company.
Date: May 19, 2017