Harvard Pilgrim CEO resigns over ‘behavior’
Company refuses to say what triggered departure
The head of Harvard Pilgrim Health Care has resigned after unspecified behavior that violated the insurance company’s code of conduct, but the insurance giant is refusing to say what he did or whether he is leaving with a golden parachute.
“It’s with mixed emotions that I inform you that today will be my last day as CEO of Harvard Pilgrim Health Care and Chair of the Harvard Pilgrim Health Care Foundation,” Eric Schultz said in a letter to Harvard Pilgrim’s board of directors and employees.
“Regrettably, I recently exhibited behavior that was inconsistent with my personal core values and the company’s core values and code of conduct,” he added.
Though Schultz’s conduct violations are unclear, his departure comes amid a societal change in holding powerful men accountable for sexual harassment.
Toni Troop, whose organization provides services for victims of domestic and sexual violence, said the behavior could be completely unrelated to the #MeToo movement and said more clarity is needed.
“Nothing good comes out of trying to bury this type of information. It leaves us with questions,” Troop said. “It’s about being transparent. There are a lot of stakeholders in this.”
She said her group has worked for decades to raise awareness and push for transparency.
Schultz said in his letter he has been “committed to fostering a workplace culture that was inclusive, welcoming and rooted in integrity and respect.
“I made mistakes,” he added, “and I’m truly sorry.”
Schultz was paid more than $2 million in 2016, the most recent data available, according to public documents. He was hired in 2010. Last year, Harvard Pilgrim, a nonprofit, saw a net loss of $8.7 million on $3 billion in revenue.
Neither Schultz nor a company spokeswoman would comment on the nature of his behavior, or whether he is receiving any severance payments.
“I think the board is likely to be sensitive to that topic here,” said David Williams, president of Health Business Group. “Any expense is going to be borne in some ways by the customer.”
Harvard Pilgrim said it accepted Schultz’s resignation, but described the move as his choice.
“His decision to resign comes following his exhibiting behavior that he recognizes is inconsistent with his personal core values and the company’s core values and code of conduct,” Harvard Pilgrim said in a statement.
Last month, Harvard Pilgrim and Partners Health Care, the owner of Massachusetts General Hospital and Brigham and Women’s, said they were exploring a merger. Both companies said yesterday that process will not be affected by Schultz’s departure.
If the companies were to go forward with a merger, it would require approval from a slew of state and federal agencies.
Michael Carson, who was hired last year as the chief business growth officer, was named president.