Former GE CEO Jeff Immelt Named Chairman of Athenahealth -- Update
By Melanie Evans
Jeff Immelt, former chief executive of General Electric Co., has been named chairman of health care cloud-based software company Athenahealth Inc.
Mr. Immelt, 61, succeeds Jonathan Bush as chairman. Mr. Bush will continue to serve as chief executive, a split in his role first announced last year.
Mr. Immelt will receive about $400,000 in cash and stock in 2018, according to an Athenahealth filing with the Securities and Exchange Commission. Mr. Immelt also said he plans to buy $1 million of the company's stock.
The appointment is not the first for Mr. Immelt since his departure last year from GE, where he spent 16 years as CEO. Earlier this month, New Enterprise Associates Inc. announced Mr. Immelt joined the venture-capital firm as a venture partner, where he will work with health care and technology companies. He will also teach at Stanford University.
Mr. Immelt steps into a shake-up under way at Athenahealth after activist investor Elliott Management Corp. bought up shares in the company last year. Based in Watertown, Mass., Athenahealth sells software for medical records, billing, care management and other uses. Its customers include physician groups and hospitals. The company ended last year with net income of $53.1 million on revenue of $1.2 billion.
In an interview, Mr. Immelt said he will help shape Athenahealth's strategy and work with the board and management on execution.
Mr. Bush, 48, said Mr. Immelt brings valuable experience with health care, technology and corporate growth as the company seeks a disciplined approach to its future development. Athenahealth announced plans last August to squeeze $100 million from its costs.
Mr. Immelt departed GE last year as the conglomerate's stock conspicuously sat out a broader market rally. GE's new chief executive has announced belt-tightening and a possible breakup of its major divisions, which include health care.
Mr. Immelt was a candidate for the top role at Uber Technologies Inc., a job that eventually went to Expedia Inc. Chief Executive Dara Khosrowshahi .
Mr. Bush announced last year he will also relinquish his role as Athenahealth's president. A search for a new president is under way.
Write to Melanie Evans at Melanie.Evans@wsj.com
(END) Dow Jones Newswires
February 07, 2018 18:08 ET (23:08 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.