Ontrak (OTRK) Announces CEO Resignation, Appoints Terren Peizer as Replacement

Ontrak, Inc. (NASDAQ: OTRK) today announced Jonathan Mayhew will step down as Chief Executive Officer (CEO) effective August 12, 2022. Mr. Mayhew cited family health reasons for his departure. He intends to be available to support the Company through the end of October 2022.

Terren Peizer, Founder and Executive Chairman, will take over as CEO upon Mr. Mayhew’s departure. Mr. Peizer was most recently CEO until April 2021 when he became Executive Chairman. He will continue to serve as Chairman of the Board of Directors. As CEO, Mr. Peizer will focus on the Company’s strategic direction, capital formation process and other corporate initiatives.

The Company also announced the following promotions of existing executives and organizational changes, which are effective immediately. Brandon LaVerne, current Chief Financial Officer (CFO), has been promoted to Co-President and Chief Operating Officer with added responsibilities over the clinical, technology, and product operations of the Company. James Park, current Chief Accounting Officer, has been promoted to Chief Financial Officer and assumes responsibilities over finance, human resources, legal, medical economics, and investor relations, reporting to Mr. LaVerne. Mary Lou Osborne, current Chief Customer Officer, has been promoted to Co-President and Chief Commercial Officer. Ms. Osborne joined Ontrak in August 2021 from Aetna and will continue to focus on growing Ontrak’s pipeline, current Ontrak and LifeDojo customer relationships, and go-to-market strategy. As a result, marketing and business development now report to Ms. Osborne.

Terren Peizer, Founder and Executive Chairman, stated: “Jon has built an outstanding management team at multiple levels that has positioned Ontrak for an orderly transition and future growth. I’m deeply appreciative of his commitment to our customers, members, and employees, and understand and respect his need to focus on his family at this time. Brandon LaVerne has done a superb job as Jon’s strategic, financial and operational partner at Ontrak. Mary Lou Osborne joined us with extensive experience and deep customer relationships in managed care which she has leveraged to build our pipeline. Together, Brandon and Mary Lou will continue to focus Ontrak on its AI infused, enhanced clinical platform and growth opportunities. As I’ve shared internally, I believe our best days are ahead of us because of our management team, our people, product, technology, clinical value proposition, and particularly our pipeline. As CEO, I look forward to focusing on the Company’s capital structure and resources to scale the Ontrak program and customer experience to those with anxiety, depression and substance use conditions across the nation. And of course, I have committed, through my investment arm, to financially support the Company’s operations as disclosed in our SEC filings.”

During Terren Peizer’s previous tenure as CEO, Ontrak grew from $2.7 million revenue in 2015, to $7.8 million in 2017, to $84.1 million in 2021. Mr. Peizer’s investment arm remains the largest shareholder in the Company.

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