Monday morning arrived with sunshine — and some chilling information from the Nashville suburbs: After seven years on the helm, Brookdale’s CEO, Cindy Baier, was out.
The parting wasn’t formally labeled a firing. However given the timing and suddenness of the announcement, it’s truthful to say issues weren’t precisely copacetic in Brentwood.
Full disclosure: I most likely spoke to Baier seven or eight instances over time. I discovered her to be pleasant, competent and candid. I additionally felt she had one of many crappier jobs in senior residing: making an attempt to rebuild a juggernaut firm contemporary off some critical and expensive errors.
To say she inherited a scorching mess can be placing it mildly. Bear in mind Brookdale’s earlier notorious — or not less than untimely — push to construct a nationwide model? Or the associated push to amass bundles of eyesore properties? Then got here COVID.
By way of all of it, she remained a gentle chief and ambassador. And in current quarters, occupancy ranges made a notable rebound.
Regardless of her efforts, the one metric that issues most to traders and shareholders — the corporate’s inventory worth — failed to achieve traction. It was slightly below $10 when she was named CEO in 2018; yesterday it was $6.40. That’s a steep drop from the halcyon days of 2006, when shares briefly topped $50. Is it any thriller why Brookdale is out there for brand new management?
Warren Buffett famously stated profitable investing comes right down to following two guidelines. Rule No. 1: Don’t lose cash. Rule No. 2: Always remember Rule No. 1. The senior residing equal? Rule No. 1: Earn more money.
Clearly, the voices that matter at Brookdale felt that it was time to present another person a shot at Rule No. 1.
Individuals who decry the comparatively fabulous earnings that athletes, entertainers and CEOs command are likely to overlook a number of fundamental realities. One is that attending to the highest is rattling close to unimaginable. The second is that staying there will be much more tough.
Working a multibillion-dollar enterprise is at all times robust — and sometimes ruthless. As we noticed this week, the senior residing business isn’t any exception. As soon as circumstances shift or the board decides it’s time for a change, you will be forgotten quick.
How briskly? Simply ask Andy Smith — keep in mind him? He’s the man Baier changed.
John O’Connor is editorial director for McKnight’s Senior Dwelling and its sister media manufacturers, McKnight’s Lengthy-Time period Care Information, which focuses on expert nursing, and McKnight’s House Care. Learn extra of his columns right here
