Indianapolis – WellPoint Inc. surprised some Wall Street analysts Monday when it announced that a relatively unknown executive will replace chief executive Larry Glasscock after he steps down in June.
Angela Braly, executive vice president and general counsel for the Indianapolis-based insurer, will become president and CEO after Glasscock steps down June 1. She will make WellPoint the biggest Fortune 500 company with a woman at the helm.
Glasscock announced his retirement Monday.
WellPoint’s choice for a successor comes as a “major shock,” according to a report from CIBC World Markets analyst Carl McDonald.
“We want to emphasize that our issue is not with Braly herself, as she very well could be the perfect person for the role,” McDonald wrote. “We just don’t know her, and neither does the market.”
Braly, 45, joined the company in 2005. Before that, she was president and CEO of Blue Cross Blue Shield of Missouri. Glasscock cited the membership and profitability growth her company saw then as an attribute.
He also noted the importance of handling public-policy, legislative and regulatory issues.
“These are all areas that Angela is incredibly skilled at, in addition to knowing how to run a company, so that was a very important aspect of her selection as my successor,” he said.
Braly said the company will focus on expanding membership but also will continue to look for more merger-and-acquisition opportunities to drive future growth.
WellPoint ranks 38th on the 2006 Fortune 500 list of the biggest companies. The next-largest company with a female leader is No. 56 Archer Daniels Midland, where Patricia Woertz is chairman, chief executive and president.
“What we know at WellPoint is that 70 percent of the health- care decisions are made by women, so I think it’s a very natural place for me to be, both as a businesswoman and as a consumer of health care for my family,” Braly said.
McDonald called company chief financial officer David Colby the most logical candidate to replace Glasscock. Colby said in a conference call that he was “very happy to work alongside” Braly.
