Three directors have resigned from struggling Miami-based primary care specialist Cano Health amid stinging criticism of the CEO's performance and against the backdrop of a plunging stock price.
Cano Health said in a March 31 news release that the decision by the directors focused overly on the short term and singled out comments made by one of them, Barry Sternlicht, as "particularly reckless."
Mr. Sternlicht said in a March 30 statement announcing his own resignation that Cano's CEO and chairman, Marlow Hernandez, DO, should resign.
"I believe that his continued tenure is harmful to the interests of stockholders and to Cano employees for all the reasons I have previously stated to you," Mr. Sternlicht said. "I have never witnessed such poor corporate governance at any company, let alone a public company, and I have been involved in at least nine and served as chairman or CEO of six."
Cano Health said it would continue to focus on improving its operational execution to deliver long-term shareholder value and realize its potential for all stakeholders. Discussing the content of board debates in public as Mr. Sternlicht did is not beneficial, it said.
"Boards must have healthy debate about how best to drive shareholder value, including in difficult circumstances," the health system said. "It is irresponsible to air those debates in ways that are meant to undermine healthy board debate and harm the company and shareholders."
Cano Health's stock price hit a one-year high of $8.84 in October. It is currently trading at $1.13.