Topline
Pharma giant Merck said on Thursday that Kenneth C. Frazier will retire as its CEO, reducing the number of Black chief executives of Fortune 500 companies to just three.
Key Facts
Frazier first joined Merck in 1992 as general counsel and rose up the ranks to become CEO in January 2011.
Robert M. Davis, who joined as chief financial officer in 2014, will become Merck’s new CEO, while Frazier will continue as executive chairman.
During Frazier’s tenure as CEO, Merck produced, among other products, KEYTRUDA (a treatment for melanoma), GARDASIL 9 (a vaccine for human papillomavirus infection) and BRIDION (a drug which reverses the effects of certain neuromuscular blocking drugs).
However, late last month, Merck shut down its Covid-19 vaccine program and shifted focus to advancing two treatments for the disease after early clinical trials showed both vaccines failed to generate adequate immune responses.
Coincident with Frazier’s announcement, Merck reported adjusted fourth quarter earnings of $1.32 per share on $12.50 billion in sales, which fell below analysts’ expectations of $1.38 per share on $12.67 billion in sales
Key Background
Frazier’s departure means that there are now even fewer Black CEOs at Fortune 500 companies – although Walgreens Boots Alliance recently announced Roz Brewer will become CEO in mid-March, Roger Ferguson Jr. will resign as chief executive of pension fund TIAA. Now, aside from Brewer, the only other Black Fortune 500 chiefs will be Marvin Ellison at retailer Lowe’s, and René Jones at Buffalo-based M&T Bank. Frazier himself has been active in social justice efforts. In the wake of the George Floyd protests last summer, Frazier told CNBC that Floyd “could be me or any other African American man.” Late last year, Frazier joined a business coalition called OneTen, which is designed to create 1 million jobs for Black Americans over the next decade. Merck is also on the Forbes “Just 100 list”
Crucial Quote
"On behalf of the entire Merck board, I thank Ken for his strong and highly principled leadership and his commitment to the company’s core values of scientific excellence, business integrity, patient focus and respect for all people,” said Les Brun, Merck’s lead independent director.
Tangent
In another shakeup at a major healthcare firm, UnitedHealth Group promoted executive Sir Andrew Witty to chief executive officer on Thursday, succeeding David Wichmann.
Further Reading
Merck CEO Ken Frazier Calls On Corporate America To Help Stabilize Society (Forbes)
What’s Happening With Merck Stock? (Forbes)
Merck Q4 Earnings Preview: Keytruda And Gardasil In Focus (Forbes)
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February 04, 2021 at 09:21PM
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Merck’s Ken Frazier, One Of Four Black Fortune 500 CEOs, Will Retire In June - Forbes
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