This article first appeared in Boston Business Journal, a sister publication of BostInno.
Watertown-based athenahealth Inc. is naming former General Electric Co. CEO Jeff Immelt as chairman of its board, a role previously held by athenahealth founder and CEO Jonathan Bush.
Athenahealth (Nasdaq: ATHN) first announced it was looking for a new chairman last August, several months after activist investor Elliott Management bought a 9 percent stake in the healthcare IT company. Bush will stay on the board, which now consists of 11 directors.
“Jeff shares our vision for more connected, efficient, and human-centered healthcare; and like us, believes a platform-oriented business and technology strategy is fundamental to executing against that vision," Bush said in a statement.
Athenahealth has also identified about $100 million worth of cost cutting opportunities since Elliott Management got involved, which included laying off about 400 people late last year.
In its statement announcing Immelt's appointment, athenahealth touted his track record growing GE Healthcare from a $3 billion business to a $20 billion business during his time leading that division.
“I have long been inspired by founder-led companies and their ability to outperform and out-innovate peers," Immelt said in a statement. "In this regard, I have great respect for all that athenahealth has accomplished and its passionate culture, which has been such an important contributor to the company’s success."
Immelt will receive a $60,000 annual cash retainer paid in quarterly installments, an annual equity award for 2018 of restricted stock units with a value of $281,250, and an annual cash retainer fee of $50,000 for serving as the chairman, according to a regulatory filing.
Athenahealth said Immelt also plans to purchase approximately $1 million of athenahealth common stock in the open market.
Immelt was also recently named a venture partner at New Enterprise Associates, one of the country's biggest venture capital firms. He stepped down as CEO of GE (NYSE: GE) in August after a 16-year tenure.
