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Rockwell Medical appoints new CEO, settles with former executives, board members
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Rockwell Medical Inc. named Gambro veteran Stuart Paul as its new CEO on Aug. 8, a day after the company reached settlements with former board members and executives ousted by the company over charges of mismanagement.
Paul, who worked for Gambro AB from 2007 to 2013, will take over as company CEO effective Sept. 4. Paul will also join the Rockwell Medical board of directors at that time.
Ben Wolin, chairman of the Rockwell Medical Board, said in a statement, “Having served in senior leadership roles with Baxter International, Gambro AB, Quest Diagnostics and Abbott Laboratories throughout his 25-year career, Stuart has substantial experience in the healthcare industry, including the renal space. He is a well-rounded executive who not only brings significant operating expertise and commercialization know-how across both domestic and international markets, but he is also deeply familiar with the clinical development process.”
During his tenure at Gambro, Paul was a member of the senior leadership team and was responsible for running a variety of businesses, including its $150 million Asia-Pacific and $400 million Americas businesses, according to the company press release. Following the $4 billion sale of Gambro AB to Baxter International, Paul led the integration of the combined $650 million Baxter-Gambro Renal business in Latin America. Most recently, Paul served as corporate officer and vice president of Abbott Laboratories, where he facilitated integration of the recent Alere Inc. acquisition, while leading its largest global business unit with $600 million of revenues.
Rockwell also announced it had entered into a settlement agreement with former company CEO Robert Chioini, chief financial officer Thomas Klema, and former board members Patrick Bagley and Ronald Boyd after members of the company’s board of directors and Chioini clashed over running the company. The disagreements led Chioini to resign in May. Specific terms of the agreement, which was effective immediately, are confidential, but includes the following:
- Chioini and Boyd resigned from the company’s board of directors;
- The parties to the agreement mutually released one another from all claims through the date of the settlement agreement;
- A pending federal lawsuit filed by the board against Chioini, Klema, Boyd and Bagley will be dismissed;
- For approximately 5 years, the parties will not directly or indirectly attempt to participate in the management or operations of Rockwell or its affiliates or subsidiaries;
- Rockwell will pay Chioini and the other executives $1.5 million, $750,000 of which was paid upon the execution of the agreement and nine monthly installments of $83,333 each, with the last installment being paid in May 2019. Rockwell will also pay Boyd an additional $30,000; and
- Chioini and Klema agreed to forfeit 313,600 unvested shares of common stock that had been issued in March 2017 as a performance-based award.
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