Per an agreement with its affiliate Starboard Value, Cerner will overhaul part of its board of directors.
The four new board members are:
- John Greisch, former president and CEO of Hill-Rom Holdings
- R. Halsey Wise, former chairman and CEO of MedAssets
- Melinda Mount, former president of AliphCom
- George Riedel, former chairman and CEO of Cloudmark
Starboard, which owns approximately 1.2 percent of Cerner's outstanding shares, has agreed to vote all of its shares in favor of the board nominees.
Cerner is also making a series of organizational structure changes after an internal and external review over the last year. The EHR developer will eliminate the president role and create a more client-focused organization under the chief client officer.
The company is currently focused on reducing operating expenses and improving its adjusted operating margins. Cerner is targeting its adjusted operating margins at 20 percent for the fourth quarter of 2019 and 22.5 percent for the fourth quarter of 2020.
To learn more about the board members and company strategy, click here.
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