eHealth (EHTH) Confirms Cooperation Agreement with Starboard Value
- Wall Street ekes out gains to close languid week
- 'Faster than Porsche but Safer than Volvo': Tesla (TSLA) Begins Model S Plaid Deliveries, Priced Between $131,100 and $145,600
- Oil hits multi-year highs in third weekly gain on demand recovery
- Snowflake (SNOW) Falls Following Investor Day Despite Strong Guidance, Analysts Bullish But Say Investors May Have Wanted More
- Dollar looks stronger as euro and sterling dip
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
eHealth, Inc. (NASDAQ: EHTH) ("eHealth" or the "Company") today announced that it has reached an agreement with Starboard Value LP ("Starboard") to nominate James E. Murray for election to the eHealth Board at the 2021 Annual Meeting of Shareholders. Effective today, Mr. Murray will be a Special Observer of the Board of Directors until the 2021 Annual Meeting of Shareholders is concluded.
Mr. Murray is a seasoned healthcare industry executive with 30-plus years in executive roles, serving as President and Chief Operating Officer of Magellan Health and as Chief Financial Officer and Chief Operating Officer of Humana, among others. He brings to the eHealth Board a proven ability to drive results in the commercial and Medicare markets and a strong commitment to operational excellence.
eHealth has also committed to selecting a new independent Chair of the Board, to be appointed following the 2021 Annual Meeting of Shareholders.
"This is a vital time for eHealth, as the actions we are taking to enhance our operations are starting to gain traction. We are pleased that we were able to reach this constructive resolution so we can focus fully on executing our strategic plans and capturing the significant opportunities ahead," said Scott Flanders, Chief Executive Officer and Director of eHealth. "We welcome Jim to our Board as we continue to build on eHealth's differentiated consumer-centric platform, serve our members and profitably grow our business. We are confident that eHealth will benefit from Jim's insights and perspectives as we work to deliver even greater value to our shareholders."
"I am excited to join eHealth's Board at such an important moment in the Company's growth," said Mr. Murray. "The healthcare industry continues to evolve, and eHealth is well positioned as consumers look online to shop for health insurance. I look forward to leveraging my operating experience and working collaboratively with Scott and the Board to guide the Company as it continues to grow, enhance its operations and create shareholder value."
Peter A. Feld, Managing Member of Starboard commented, "We believe eHealth is well positioned to continue winning market share and to deliver improved growth, profitability, and cash generation. We appreciate the constructive dialogue we have had with members of the Board and management team over the last several months. Jim Murray adds critical healthcare expertise and deep operational knowledge to the Board. We are pleased with his nomination along with the other recently appointed directors and governance changes. We look forward to seeing eHealth deliver improved results and value creation for all shareholders."
With the appointment of John Hass and Cesar M. Soriano, pursuant to the terms of eHealth's previously announced agreement with Hudson Executive Capital LP, and with Mr. Murray's addition to the Board, the Company will have added six new directors over the last three years and its Board will consist of nine members, eight of whom are independent.
Pursuant to its agreement with the Company, Starboard has agreed to customary standstill and voting commitments, among other provisions. The full agreement between Starboard and eHealth will be filed on a Form 8-K with the U.S. Securities and Exchange Commission (the "SEC").
Jack Oliver to Retire from Board of Directors
The Company also announced today that, after more than 15 years of service to eHealth, Jack Oliver will be retiring from the Board effective at the Company's 2021 Annual Meeting of Shareholders.
"Jack has been instrumental in helping chart a course for eHealth that has resulted in market-leading returns and positioned the Company for its next phase of growth," said Mr. Flanders. "I have personally appreciated his support and counsel throughout the years. On behalf of the Board, we wish him the very best."
"It has been a privilege to be part of eHealth's incredible journey," Mr. Oliver said. "I am proud of what we have accomplished during my tenure on the Board and leave with a great sense of confidence in Scott, the Board and our management team. eHealth is a unique company, and I look forward to following its progress closely as it moves forward."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- 'They Can Hire Jeff Bezos and It Won't Make a Difference': GameStop (GME) Taps Senior Executives From Amazon as New CEO and CFO, Tops Q1 Earnings Estimates and Says May Sell Up To 5 Million Shares
- State Street (STT) Launches New Division Dedicated to Digital Finance
- Aclaris Therapeutics (ACRS) Prices 7.042M Share Common Offering at $17.75/Sh
Create E-mail Alert Related CategoriesBoard Changes, Corporate News, Hedge Funds
Related EntitiesStarboard Value
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!