Thursday, November 1, 2018

Delta Dental of California Announces Departure of Chief Executive Officer Tony Barth - Due to "Consensual Relationship"

Delta Dental Logo.jpg
 
Well, well, well it seems that those of us practicing dentistry are not the only ones being *ahem* taken advantage of by Delta Dental (BTW you have no idea how difficult it was not to be more blunt there).
 
Delta Dental of California appointed Tony Barth as CEO not quite 2 years ago (January 2016 if memory serves) and they have now announced he is being terminated… or “departing” in dental insurance speak.  The reason?  It seems, according to Delta, that Mr. Barth was "engaging in and failing to report a consensual relationship with a subordinate employee”.  
 
While his career has ended in shame, he won’t be living out of a cardboard box.  According to the company’s Form 990 for the fiscal year of 2016,  Barth managed to eke out a subsistence living on a mere $8.2 million that year.  That’s a pretty good draw FOR A NON-PROFIT CORPORATION.  Sorry for the all caps, but Delta is notorious for being stingy with doctors, while they seem to have no problem paying Mr. Barth the equivalent of a good MLB middle reliever.
 
Here is the official press release from Delta Dental California announcing the termination:
 

Delta Dental of California and affiliates announced today that the Board of Directors has terminated the employment of Chief Executive Officer Tony Barth, effective immediately, for reasons relating to his engaging in and failing to report a consensual relationship with a subordinate employee.

Lynn Franzoi, Chair of the Board of Directors of Delta Dental of California, said, “Delta Dental’s culture is based on a strong set of ethics and values, including trust, service, excellence and innovation. As one of the nation’s largest dental benefits providers, these values are vital to our culture, guide how we operate and treat one another, and are essential to our future success.”

The Board of Directors is taking several steps to ensure strong leadership and continuity during this transition. The Board has formed an Office of the CEO and appointed Chief Financial Officer Mike Castro as acting CEO to lead the Company. Mr. Castro will be supported by Steven McCann, a member of the Board of Directors, who will serve as Special Advisor to the CEO, and Chief Human Resources Officer Sarah Chavarria. The Office of the CEO will report to the Board and have oversight over all operations of the company throughout the transition.

The Board intends to launch a formal search process to identify a permanent CEO. It has also appointed Senior Vice President of Finance Alicia Weber as acting CFO while Mr. Castro serves as acting CEO.

Mr. McCann said, “Mike has been a widely respected leader at this company for almost two decades and he has the full confidence and support of Delta Dental’s Board. With a strong acting CEO and talented senior leadership team, we expect a seamless transition.”

Mr. Castro said, “I thank the members of our board for placing their trust in me and look forward to leading the company during this transition, with the support of Steven and Sarah and the rest of our outstanding senior management team. In the meantime, it will be business as usual, and our day-to-day operations will not change. We are more committed than ever to serving the customers and enrollees who rely on us.”

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