Under heavy investor pressure, Conseco Inc.’s two top executives have resigned their posts, effective immediately. Chairman Stephen C. Hilbert and Chief Financial Officer Rollin M. Dick made the announcement Thursday, saying Conseco’s market-value plummet over the last two years has impaired investor confidence in the pair.
“This has been one of the toughest decisions Conseco’s board and I have ever made,” Hilbert said about his and Dick’s departure. “Over the last few quarters it became clear that my and Rollie’s ability to engender investor confidence was impaired. Both Rollie and I leave confident that this transition places the company in very strong hands.”
Conseco executives David V. Harkins and Thomas H. Lee have been chosen as interim chairman and CFO. The company will begin searching for permanent replacements immediately.
The company’s first-quarter results report showed operating earnings dropped to 30 cents per diluted share to $107 million, with net cash from operations of $315.7 million. Standard & Poors lowered the company’s ratings earlier this month on corporate credit, senior debt, preferred stock and commercial paper. Two stockholders have filed a class-action suit in an Indiana U.S. District Court alleging Conseco executives intentionally misled investors.
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