This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dolan Out at Bristol-Myers

Updated from 12:17 p.m. EDT

Bristol-Myers Squibb (BMY - Get Report) removed Peter Dolan as chief executive, a day after an independent monitor recommended he be fired, and replaced him temporarily with James Cornelius, the former chairman of Guidant.

Leaving along with Dolan is Richard Willard, senior vice president and general counsel. Sandra Leung, vice president and corporate secretary, was appointed to act as interim general counsel.

The departures follow a recommendation on Monday from Frederick Lacey, a former federal judge assigned to monitor the company's corporate conduct, that the executives be terminated.

James Robinson III, the chairman of the board, said he wanted to express "deep appreciation and respect for Peter for his unyielding commitment to our company's mission, values and purpose, and for his many impressive achievements in developing and executing a successful strategy that has put Bristol-Myers Squibb squarely on a path toward growth and leadership for the future."

Those observations are debatable, considering that under Dolan's watch more than half of Bristol-Myers' market capitalization vanished. Since May 2001, when he became CEO, the company's stock is down 56.4%. During the same period, the S&P 500 is up 2.6% and the Amex Pharmaceutical index of big drug stocks is down 12.8%.

By early afternoon, the stock was up 58 cents, or 2.5%, to $23.98 on heavier-than -average trading.

"We view the removal of Dolan as an indication that the board is listening to investors," says David Moskowitz of Friedman Billings Ramsey. JPMorgan's Chris Shibutani says Dolan's departure was a positive development and the appointment of Cornelius a logical choice.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
BMY $65.32 0.00%
AAPL $128.70 0.00%
FB $78.81 0.00%
GOOG $540.78 0.00%
TSLA $230.51 0.00%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs