Johnson & Johnson is a multinational corporation based in the United States of America, and there is some big news coming from their camp. The company Johnson & Johnson has announced that the present Chief Executive Officer Alex Gorsky will no longer continue in the upcoming financial year.
A replacement has been made for the post of Chief Executive Officer and the name that has been proposed for the same is Joaquin Doato. The transition will take place in the month of January in the coming year.
Change In Johnson & Johnson’s CEO
This announcement was made by Johnson & Johnson on Thursday that Joaquin Doato will be replacing the current Chairman Alex Gorsky effective on January 3rd. Joaquin will also be handed over some extra responsibilities and he will also be upgraded to the membership of Board of Directors. This upgrade in his post is necessary as Joaquin is going to become one of the leading members of the company with a C-tag. Previously he held the position of Vice-President in the Chief Executive Committee of the company.
After the news broke, Joaquin gave his first impressions on the big transition in the company. He reportedly said that, it was pleasure working with the present CEO Alex Gorsky for a long time and that he is pleased with the decision taken by the core team members of the company. He added that he shall work under Alex’s guidance and shall benefit the company.
Alex Gorsky who led Johnson & Johnson as Chief executive Officer and Chairman for nine long years is now going to serve the company as the Executive Chairman. He also announced in the media that the reason behind him quitting the post of the Chief executive Officer is because he now wants to focus on his family because of the family health reasons that have been a matter of concern for him lately.
Because of the workload and expansion of the company through the years, he has spent very less time with his family. And after leading the company for nine long years he now wants to step down.
There are also other reasons why the company requires a different perspective as the shares for the company have fallen 1% during extended trading. Also, the company has faced various lawsuits in the reign of Alex Grosky. One of the lawsuits was based on the baby talc powder that is one of the best sellers for the company worldwide.
There were also allegations on the company that opioids are used in the manufacture of the products and because of this Johnson & Johnson lost many trusted customers.
It was in the month of July, that the company reached a settlement with a group of State Attorney’s which cost them more than 26 million dollars. Johnson and Johnson which is the third largest company in the United States for Drug distribution was accused of using opioids in the products they manufactured.
This settlement also included three other companies and they are bound to pay 21 million dollars. The remaining 5 million dollars are to be paid by Johnson & Johnson over the next nine years.
Johnson and Jonhson’s vaccine was initially approved by FDA but faced questions on its effectiveness. FDA approved the vaccine as they were single shots and can be stored in the refrigerator for longer durations. This left the vaccine’s effectiveness in question and people started to boycott the vaccine.
The company definitely has high hopes from the new Chief Executive Officer Joaquin Duato for improving the current situations of the company.