With its merger recently completed, executives at Coram Healthcare Corp. must first get its management team in place before it sets its sites on reducing corporate overhead and developing its alternative-site delivery network.
Earlier this month, T2 Medical, Curaflex Health Services, HealthInfusion and Medisys completed the $597 million Coram merger. The company, which will base its new headquarters in Boulder, Colo., is now the nation's second-largest home infusion provider after Caremark International.
Since it entered the New York Stock Exchange July 11, Coram stock has traded as high as $15.75 per share and as low as $13.38 per share.
Also on July 11, Coram added to its executive management by naming Sam Leno its new chief financial officer. Mr. Leno formerly was vice president of finance and information and technology at Baxter International, Deerfield, Ill.
Mr. Leno joins James Sweeney and Charles Laverty as Coram's senior executives. Mr. Sweeney is chairman and chief executive officer of the company. Mr. Laverty-the company's original CEO-is executive vice president.
Messrs. Sweeney and Laverty could not be reached for comment. However, industry observers are questioning whether they will remain in their respective management positions at Coram for the long term.
Mr. Sweeney already has received a $4 million finder's fee from T2 for his role in putting the Coram deal together. Currently, his only other compensation is in the form of stock options for 3 million Coram shares, which will be priced equal to the closing price of Coram's stock on Dec. 1.
Mr. Laverty, by comparison, has a one-year deal with the company that will pay him a base salary of $450,000 and an incentive package that provides him with an additional $450,000 if Coram meets certain performance objectives. He has options on 100,000 Coram shares.
Mr. Laverty's contract also includes a $2.5 million severance package. The sum would be payable over three years if he were to leave Coram before the end of his contract.
Analysts say clauses such as these raise speculation that a new management team could replace several of the company's founding officers, although neither the company nor any of its management has indicated such an event would take place.
Coram must also determine how to achieve its primary goal of developing into a $2 billion alternative-site provider over the next two years. And Mr. Sweeney is faced with eliminating between $10 million and $50 million in corporate overhead.