Novartis shocked investors on Tuesday morning when the Swiss-based firm announced that CEO Daniel Vasella would relinquish his post as CEO to Joe Jimenez while retaining his chairman of the board spot.
According to a release, this move has been in the works since 2008 and lead to the restructuring of its management team. The executive committee has decreased in size from 12 to nine members, and the company eliminated three senior positions, including chief operating officer, head corporate affairs, and head group quality/technical operations.
Jimenez is no stranger to the company. He’s served as pharmaceutical head for three years and held a laundry list of senior level positions at consumer companies, such as Heinz and Clorox. His previous pharma experience consists of a five-year tenure at AstraZeneca from 2002 to 2007.
While Vasella continues to draw a paycheck from Novartis three people are heading for different pastures. COO Joerg Reinhardt, a frontrunner for the CEO slot, is calling it a day; as are CFO Raymond Breu and Quality Group leader Andreas Rummelt.