Home » News » Currently Reading:

Cerner Names Brent Shafer as Chairman and CEO

January 10, 2018 News 6 Comments

image 

Cerner announces that it has hired Brent Shafer as its board chair and CEO, effective February 1. The 60-year-old Shafer had been CEO/EVP of Philips North America from since 2014 and a Philips employee since 2005. Prior to that, he held roles at Hill-Rom, GE Medical Systems, HP, Johnson & Johnson, and Intermountain Healthcare.

Cerner co-founder Cliff Illig, who has held interim roles as CEO and board chair since the death of Neal Patterson in July 2017, will resume his previous role as vice-chairman of the board.

Illig said in a statement, “Brent is a proven chief executive who has helped lead the growth and strategies of a complex, multinational organization over a number of years. He is committed to innovation, with extensive knowledge of healthcare, technology, and consumer markets and an exceptional skill set that complements Cerner’s strong leadership team. Since our founding, Cerner has used the power of information technology to disrupt and improve healthcare. The addition of Brent to our leadership team positions Cerner well for our next era of growth.”

Shafer said in the announcement, “For decades, Cerner has built its reputation on meaningful innovation and driving client value. This company’s history of remarkable, sustained growth is testament to a strong leadership culture and I’m excited to celebrate many new milestones with Cerner associates around the world. My commitment to Cerner’s clients, shareholders, and associates worldwide is that we will continue to be the catalyst for real and effective improvement across healthcare.”

According to SEC filings, Shafer will earn a base salary of $800,000, will be eligible for a $1.2 million annual bonus, will be awarded $4 million worth of Cerner shares plus a $3.7 million award to replace his forfeited Philips equity, and will be allowed use of Cerner’s corporate aircraft up to $100,000 annually. He will be paid two years’ salary if the company is sold.

View/Print Text Only View/Print Text Only


HIStalk Featured Sponsors

     

Currently there are "6 comments" on this Article:

  1. So, Cerner’s new CEO is hired with a golden parachute! He gets $1.6 million if the company is sold. That’s terrible. It would be far better if he were to get a bonuses based upon customer satisfaction, but, then again, corporations don’t give those types of incentives to CEOs. Sad.

    • $1.6MM is perhaps the lowest golden parachute I’ve ever heard of. It’s two years of salary, which is already crazy low in healthcare. Don’t forget the amount of risk, responsibilities, and obligations CEOs take on as well.

      • Golden Parachute? Not only is it small, this is common practice. Executives of this stature don’t negotiate their own contracts. Lawyers sit at the table head to head protecting their client and protecting the company. Pretty standard stuff.

  2. I’m not suggesting he is not capable, but 60 years old seems a bit long in the tooth. How long do they expect him to serve as CEO?

    • I think that’s pretty par for the course for a big cap company. The last time Cerner had a 29-year-old CEO, it only had 3 employees. (Thanks, Neal, Paul & Cliff.) It’s not a startup anymore; I don’t think there’s anything wrong with getting someone with large-company experience.







Subscribe to Updates

Search


Loading

Text Ads


Report News and Rumors

No title

Anonymous online form
E-mail
Rumor line: 801.HIT.NEWS

Tweets

Archives

Founding Sponsors


 

Platinum Sponsors


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold Sponsors


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reader Comments

  • DrM: Found the person who knows nothing about user change management. (Did I do it right, is this how we play the game?) S...
  • Seargant Forbin: @ What's with the Fairview guy? I don't think this Apple comparison is helping your case any. I bet if you spoke with de...
  • Bobby: Great point Bob. Cerner and Epic are both organic companies that value a “one big honking system” approach to thin...
  • AynRandWasDumb: "The most recent Epic trick I heard is that, now that Epic is requiring every customer to move to quarterly updates inst...
  • Bob: Even though Apple could take IP directly from the Apple ecosystem developers, their usual model is to just buy the compa...
  • You might say I'm a dreamer...: Will this Cerner dust up with the DoD now give us a real granular discussion on a national level as to what Interoperabi...
  • Eddie T. Head: To claim that Apple is a hardware company and not a software company is quite odd. Without their software, Apple's hardw...
  • DrM: Epic's model does assert the ability to use any IP in App Orchard without compensation or limitation, it's why the few v...
  • Matt: VA CIO: Expect another 10 years of VistA in facilities during new EHR rollout This is clear indication of how the VA ...
  • Satan warming up the fiddle?: Coming in to an election season where healthcare will most certainly be part of the debate are we starting to see the fi...

RSS Industry Events

  • An error has occurred, which probably means the feed is down. Try again later.

Sponsor Quick Links