Dolan Out at Bristol-Myers
Updated from 12:17 p.m. EDT
Bristol-Myers Squibb (BMY) 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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV