Two State Compensation Insurance Fund Execs Resign Without Explanation
Posted on Dec 17, 2013
California’s largest provider of workers’ compensation insurance, San Francisco-based State Compensation Insurance Fund, lost two of its lead executives this November.
Chief Executive Officer Tom Rowe and Chief Financial Officer Dan Sevilla “will step away from overseeing day-to-day operations immediately but will remain available for advice and consultation until the end of the year,” the firm said in a statement.
The abrupt resignations were announced at a board meeting on November 15. No explanation was offered, but according to Jennifer Vargen, senior vice president of marketing and communications told the press, “These are voluntary resignations.”
Three years ago, the insurer rolled out a new initiative to reduce their annual operating expenses by approximately $250 million a year. The company cut 40% of its labor force as part of the initiative—nearly 3,000 workers.
“A big transformation of this size is a long journey,” said Vargen. “And it’s got a lot of different phases involved.”
While State Fund looks for permanent replacements for Rowe and Sevilla, the board has named general counsel Carol Newman as interim president and chief investment officer Pete Guastamachio as interim CFO.
If you’ve sustained a serious workplace injury in Tehama and are trying to determine your next step, consider scheduling a no-cost case review with the experienced professionals at Ledgerwood Law Group. Call our offices toll-free at 888-761-7383 or complete out the online quick contact form for more information. Also, be sure to ask for a copy of our helpful, free guide: The Northern California Workers’ Compensation Survival Manual.