Cano Health shareholders re-elected Dr Alan Muney and Kim Rivera to the company’s board on Thursday, a victory for Dr Marlow Hernandez, the struggling CEO of the care company. main squirrel.
The re-election thwarted the plans of three former Cano executives, who asked shareholders to stop supporting Muney and Rivera. In March, Barry Sternlicht, a billionaire real estate investor; Dr. Lewis Gold, co-founder of Sheridan Healthcare; and Elliot Cooperstone, managing partner of InTandem Capital Partners, have resigned from Cano’s board and called for Hernandez’s removal.
The three former directors, who hold a 35.7% stake in Cano, allege Hernandez mismanaged the company and claimed other directors had excluded them from conversations. By trying to get shareholders to stop supporting Muney and Rivera, the three said they wanted to send a “clear message” to Hernandez and other directors.
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The three former directors have also sought to reopen the nomination window for directors by submitting preliminary orders to the Delaware Chancellor’s Court last Friday to prevent Cano from conducting its annual shareholders’ meeting. That motion was denied.
In an emailed statement, Cano Health President Solomon Trujillo acknowledged there was a significant “withhold” vote but expressed support for Muney and Rivera. He said Sternlicht, Gold and Cooperstone misrepresented facts and accused them of having a self-interested agenda.
A company spokesman declined to provide details about the vote, saying it would be included in regulatory filings. As of Thursday night, no records have been made.
In a statement, the three former directors said they will continue to pursue leadership and board changes at the company.
“Unfortunately, the only party in denial about the need for sweeping changes appears to be the current board of directors,” the group said in an emailed statement.
Trujillo, a media executive and mass investor who has served as an independent director since 2021, was named Cano’s president in April. Hernandez continues to serve as director.
In May, the company said it planned to focus on its Medicare Advantage business and sell non-core assets. In a statement released after the meeting, Trujillo said the board is channeling its energies into implementing that strategy. Among the complaints from former executives was the company’s unwillingness to sell non-core assets.
