Healthways names next chairman

Physicians Interactive CEO joined board last year
Jun 12, 2014 6:55 AM

Ben Leedle has a slightly different interpretation of Healthways' North Tide board deal

Healthways CEO Ben Leedle on Tuesday passed on to his employees word of the wellness company's ceasefire with activist investment fund North Tide Capital. Calling the deal to give North Tide three board seats a "positive outcome," he also took time to point out that he — a prime target of North Tide manager Conan Laughlin — and other senior executives will stay in their jobs.

In addition, Leedle described the Strategic Review Committee that will soon be formed as having the goal "to assure that the board and management remain aligned on the company strategy." That's an interesting — and, given Laughlin's calls for big changes, perhaps somewhat optimistic — spin on the language contained in the standstill agreement, which says "the purpose of the Strategic Review Committee shall be to review, evaluate and make recommendations to the Board regarding the Company's business strategy."

Here's a copy of Leedle's email:

 

Jun 4, 2014 12:17 PM

Healthways, North Tide strike a deal

Ex-Caremark CEO out of the picture as three directors agree to step down; new committee to review strategies
Jun 3, 2014 7:19 AM

Healthways board challenger: 'This is clearly a turnaround situation'

North Tide Capital, the hedge fund taking aim at the Healthways board of directors, has updated its presentation to investors. The new version is beefed up with more questions about the company's investments in (and revenues from) initiatives such as MeYou Health, the Dean Ornish lifestyle management program and the Blue Zones partnership with Gallup. The new presentation — view it here and compare it to the old one here — strikes a tone that is softer at times but as strident as before in other places, especially in terms of the Healthways board's unconditional backing of CEO Ben Leedle and his strategies.

Some items that caught our eye:

• Addressing the company's insistence that its Silver Sneakers senior fitness program is a way to leverage costs across the company, North Tide manager Conan Laughlin says "Silver Sneakers funds a giant, money-losing science experiment."

• Tipping his hat to the board for disclosing that Healthways' international business posted a 2013 EBITDA of $3 million, Laughlin then turns around to say that means "the non-Silver Sneakers business loses more money than we had thought."

• North Tide quotes a note from Dougherty & Co. analyst Brooks O'Neil that thinks out loud about director candidate Mac Crawford becoming not just executive chairman if elected, but also filling the CEO seat now held by Leedle.

Jun 2, 2014 7:12 AM

Healthways' full North Tide defense

The board and management of Healthways have responded at length to the proxy challenge mounted by North Tide Capital hedge fund manager Conan Laughlin, who wants big changes at the company and is pushing for four board seats at its upcoming shareholders' meeting. Healthways leaders say Laughlin's ideas to spin out SilverSneakers and shut down international operations suggest he doesn't truly understand the company's business. Also among the components is a defense of the vision of CEO Ben Leedle, whom Laughlin wants to boot out, and letters of support from two big customers.

Healthways investors will vote June 24 on the North Tide proposals. The company's shares (Ticker: HWAY) closed Wednesday trading at $17.88 and have risen 16 percent so far this year.

 

May 8, 2014 7:30 AM

Healthways board responds to North Tide criticism, ideas

Directors: Post-transformation, company 'ideally poised to achieve sustainable, profitable growth'
Apr 15, 2014 7:03 AM

Hedge fund: Healthways' SilverSneakers business worth $1B+

Company disputes valuation of unit based in Arizona
Apr 7, 2014 1:01 PM

Three familiar names join Healthways proxy fight

Hedge fund nominates ex-Caremark and VU execs, rejects board offer that included two seats and strategy review committee
Feb 28, 2014 2:42 PM

Cigarran quits Healthways board

Co-founder will no longer 'watch this company fail to meet its potential' – Chairman expresses surprise, reiterates backing for Leedle
Feb 19, 2014 7:16 AM

Hedge fund plans to nominate Healthways board slate

Terms of chairman and former CEO Cigarran ending this spring
Jan 15, 2014 6:56 AM