Primary care provider Cano Health Inc CANO announced that CEO Dr. Marlow Hernandez has agreed to step down immediately and remain on the Board of Directors.
Chief Strategy Officer Mark Kent has been appointed interim CEO.
The board is launching a search to identify a permanent CEO and to refresh the board with additional new independent directors, Cano Health said.
The move is intended to advance the execution of the company's strategy for stockholder value creation, Cano Health said in a statement.
The primary care company, which went public two years ago through a $4.4 billion special purpose acquisition company merger, has been mired in an internal boardroom drama.
In a press release, the company said the executive leadership was intended to "advance the execution of Cano Health's strategy for stockholder value creation."
The group of shareholders with a 35% stake in the company sent an open letter outlining their resignation from the company's board, expressed concerns about CEO conduct and governance issues, and called for urgent leadership and strategic changes.
The trio points out that Cano's total shareholder returns are down around 70% over the past 12 months and 86% since going public in 2021.
Last year, CVS Health Corp CVS decided not to pursue an acquisition of Cano, just a few days after Humana Inc HUM and CVS Health showed interest in U.S. primary care provider.
Price Action: CANO shares are up 9.20% at $1.37 on the last check Tuesday.
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