Omnicare Inc. said Monday that President and CEO Joel F. Gemunder has retired, effective July 31, and will be succeeded on an interim basis by director James D. Shelton.
Gemunder, 71, also is retiring from the board. He has been president of the company, which dispenses drugs to nursing homes and long-term care facilities, since 1981 and has served as CEO since 2001. The board has begun a search for his successor.
Shelton is the former chairman and CEO of Triad Hospitals Inc. The announcement comes as Omnicare prepares to report its second-quarter earnings on Thursday.
"Having led Omnicare for nearly 30 years, I believe now is the right time for me to turn the reins over to a new generation of leaders," Gemunder said in a statement. "I look forward with great excitement and enthusiasm to the next chapter of my life, which will be devoted to my family, charitable interests and other personal and business pursuits."
In a regulatory filing, Omnicare said Gemunder will receive $16.2 million in cash severance, payable in installments through July 1, 2011. Also, his 2.67 million unvested stock options and 705,176 shares of restricted common stock are now fully vested.
Omnicare also said in a separate filing that Cheryl D. Hodges resigned on the same day as senior vice president and secretary. She will receive cash severance of about $2.1 million.
The departures follow the June retirement of Chief Operating Officer Patrick E. Keefe, 65, after 26 years with the pharmaceutical services company. Jeffrey M. Stamps, senior vice president of pharmacy operations, is filling in as COO until a permanent successor is named.
Shares fell 14 cents to $24.49 in afternoon trading, having pared some losses earlier in the session when the stock dropped to $22.14 on the news.