In a surprising move, Pfizer (NYSE: PFE) CEO Jeff Kindler announced his retirement late Sunday night. Kindler’s tenure at the world’s largest drugmaker was notable but forgettable. Kindler failed to garner support of shareholders and the Board of Directors.
Kindler’s problem is that he has been unable to generate any organic growth at Pfizer. The company’s once promising drug pipeline has virtually dried up. Pfizer has resorted to buying other companies to try and jumpstart its lagging divisions. Pfizer recently bought drugmaker King Pharmaceuticals and pharmaceutical company Wyeth.
Both of these moves should benefit the company in the future but the clock had run out for Kindler. Shareholders were fed up with the excuses for the stock’s poor performance. Kindler was the CEO of Pfizer for nearly 5 years and the stock has done nothing but drop. Shares were in the mid $20′s when Kindler joined the company. Today, Pfizer’s shares trade in the mid teens.
The truth is that Pfizer’s stock has been a dog for some time now. There has been no reason to own the stock except for its dividend. Even that wasn’t reason enough since companies like Eli Lilly and Bristol Myers Squibb offer more growth and comparable dividend yields.
According to the AP, Kindler claims that he is leaving to “recharge his batteries and spend more time with his familyâ€. That’s the same thing that Stan Van Gundy said when he was pushed aside by Pat Riley and the Miami Heat. I am sure that Pfizer’s board of directors decided that it would be best for Kindler to return home and spend more time with his family.
The question now becomes, will Pfizer shift its corporate strategy to its new CEO or will the company look for a CEO that fits the company’s current strategy?
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