Tenet CEO Trevor Fetter to step down: 6 things to know today

Tenet Healthcare Chairman and CEO Trevor Fetter is stepping down from his CEO and director positions.

Here are six things to know:

1. Mr. Fetter will step down either when the company appoints a successor or by March 15, 2018.

2. Ronald Rittenmeyer will take on the executive chairman position, effective immediately.

3. The company is adding new leadership to its board. Mr. Rittenmeyer said the changes are due to healthcare market demands and to "driving operational and financial performance in a manner that maximizes shareholder value."

4. Russell Reynolds Associates, an executive search firm, will launch a search for a new CEO.

5. The company's board of directors approved a short-term shareholder rights plan, effective Aug. 31. The plan aims to protect shareholders' interests as the company makes leadership changes and assesses best next steps for Tenet.

6. As per the plan's terms, any person or entity buying a 4.9 percent or more stake in Tenet's outstanding common stock will have entitlement to buy common stock shares at a 50 percent discount. If an individual or entity owns more than 4.9 percent of Tenet's outstanding common stock, the plan allows them to continue to own their those shares. However, they cannot buy a position in any additional shares unless they wish to activate the rights plan. For more on the plan, click here.

Mr. Fetter said, "I would like to thank the board of Tenet for their confidence and support during my tenure. I am proud of what we accomplished in transforming the company, and strongly believe the 130,000 Tenet employees will continue focusing every day on advancing the company's mission. I have no doubt that Tenet will be a leading force in creating a better healthcare system and I look forward to assisting during the transition."

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