Item 5.02. |
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
Executive Officer and Director Transition Matters
As previously disclosed, on December 8, 2023, Veradigm Inc. (the “Company”) announced the appointment of Dr. Shih-Yin Ho as the Company’s Interim Chief Executive Officer and Mr. Leland Westerfield as the Company’s Interim Chief Financial Officer, each effective December 7, 2023 for an initial term of six months through June 7, 2024 (the “Initial Term Date”). On May 27, 2024, the Company entered into an extension letter agreement (the “Extension Agreement”) with Mr. Westerfield to extend his appointment through December 31, 2024. The Extension Agreement also provides that $100,000, reflecting 50% of the original cash bonus amount payable to Mr. Westerfield in accordance with his offer letter dated December 7, 2023 (the “Offer Letter”), will be deemed to have been earned and will be paid in connection with the entry into the Extension Agreement, with the other 50% of his original cash bonus amount payment payable subject to the terms of the Offer Letter. In addition, the Extension Agreement provides that Mr. Westerfield is entitled to a severance payment in an amount equal to six (6) months of base salary in the event of a qualifying termination following a change in control of the Company.
Dr. Ho informed the Board of Directors of the Company (the “Board”) of her decision to resign as a director of the Company, effective upon the expiration of Dr. Ho’s term of service on the Initial Term Date. Effective as of the Initial Term Date, the Board appointed Mr. Thomas Langan as Interim Chief Executive Officer of the Company, and the Board reduced the size of the Board from seven directors to six directors.
As Interim Chief Executive Officer, President and Chief Commercial Officer, Mr. Langan will serve as the Company’s principal executive officer, effective on the Initial Term Date.
As previously disclosed in connection with Mr. Langan’s appointment as President of the Company effective May 6, 2022, Mr. Langan, age 58, previously served as the Senior Vice President and General Manager of the Veradigm business unit within the Company since 2018. Prior to that, Mr. Langan was the Chief Executive Officer of Practice Fusion, a cloud-based EHR provider acquired by the Company in 2018, since 2015. Previously, Mr. Langan held executive positions at Symphony Health Solutions and MediMedia where he managed their life sciences data, analytics and consulting business, market access and multi-channel marketing solutions. During his career, Mr. Langan has served as Chief Executive Officer, President, Chief Commercial Officer, SVP of Sales and various business development roles working with payers, life sciences organizations, employers and provider organizations. Mr. Langan has more than 25 years of broad-based functional experience in sales, marketing, strategy and P&L management. Mr. Langan does not have a family relationship with the Company’s directors or executive officers and is not a party to any transaction, or series of transactions, required to be disclosed pursuant to Item 404(a) of Regulation S-K. There is no arrangement or understanding between Mr. Langan and any other person pursuant to which he was selected as an officer of the Company.
The foregoing description of the Extension Agreement with Mr. Westerfield does not purport to be complete and is qualified in its entirety by reference to the complete text of the agreement, which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
Approval of 2024 Compensation Elements
On May 21, 2024, the Compensation Committee of the Board (the “Compensation Committee”) approved 2024 compensation adjustments for certain executive officers, including the ordinary course 2024 annual equity awards to the Company’s executive officers as set forth below, on a date specified by the Compensation Committee after the date of this report. On May 27, 2024, in connection with Mr. Langan’s appointment as Interim Chief Executive Officer as described above, the Compensation Committee increased the base salary amount for Mr. Langan, effective on the Initial Term Date and as reflected in the table below.