Tenet Healthcare Corp (NYSE:THC) stock was up today following news that members of its Board of Directors have turned in their resignations.
The two members of the Board of Directors that are resigning are Randy Simpson and Matt Ripperger. These two were representatives of THC stock holder Glenview Capital Management. Both signed the resignation letter and it went into effect on Thursday.
Randy Simpson was a member of the Board of Director’s Nominating and Corporate Governance Committee, as well as the Quality, Compliance & Ethics Committee. Matt Ripperger served on the Board of Director’s Human Resources Committee.
Simpson and Ripperger said that their reason for leaving Tenet Healthcare Corp’s Board of Directors was due to “irreconcilable differences regarding significant matters impacting Tenet and its stakeholders.”
Simpson and Ripperger say that Glenview believes the best way to “promote strong patient satisfaction and long-term value creation,” at Tenet Healthcare Corp is to leave the Board. They also note that this will trigger the expiration of the stockholder’s “standstill” agreement in 15 days.
The two ex-Directors say that Glenview is still interested in its stake in Tenet Healthcare Corp. They note that the company plans to look into other avenues for how it can continue to be a constructive holder of THC stock.
Glenview is the largest shareholder of THC stock. As of June 30, it owned an 18% stake in the company. This had a value of $225 million when the markets closed on Thursday.
THC stock was up 13% as of noon Friday, but is down 3% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.