Molina Healthcare has fired its CEO and CFO, in light of the company’s “disappointing financial performance,” the company announced today.
CEO J. Mario Molina and Chief Financial Officer John Molina, sons of the health insurance company’s founder, have worked for the Fortune 500 company for over two decades.
Officials said Chief Accounting Officer Joseph W. White will serve as interim CEO and CFO while the board of directors begins the search process for a permanent CEO.
“The Board of Directors appreciated Mario and John Molina’s leadership and contributions for more than two decades,” Chairman Dale B. Wolf said in a statement. “In light of the company’s disappointing financial performance, the Board has determined to change leadership in order to drive profitability through operational improvements. These changes represent targeted and deliberate actions to enhance the company’s focus and improve its competitive position within the healthcare industry.”
The ouster comes amid rumors of an impending sale in the company’s future.
J. Mario and John C. Molina will continue to serve as directors on the Board, the company said.
Molina Healthcare stock (MOH) jumped close to 17% after the announcement, ending the day at $59.75.
This story will be updated as more information becomes available.