The Medibank Private Ltd (ASX: MPL) share price is edging higher today following the announcement of a new CEO. Shares in the health insurance giant are currently 0.52% higher, trading at $2.90.
New CEO
This morning, Medibank announced that David Koczkar has been appointed as the new company chief executive officer (CEO). However, investors will have to wait till 17 May to see their new man in action. The news comes as Craig Drummond, CEO for the last five years, is stepping down from his role.
While new to the role, Mr Koczkar is not new to the company and has been serving Medibank as chief customer officer.
Medibank said he had been "instrumental in the growth of the company" while overseeing some of the largest changes in the private health insurance sector in Australia. Accomplishments in his previous role include improved customer growth and retention, and product improvements.
Prior to joining Medibank, Mr Koczkar was the group chief commercial officer at Jetstar. He has more than 25 years of leadership experience in the finance and consulting industry.
Management comments
Regarding both his imminent role and the previous CEO, Mr Koczkar said:
For the last seven years, I have had the privilege of working to improve our relationship with our customers, their experience and enhancing the value that we provide them. I am thrilled to be able to continue this work.
I would also like to take this opportunity to thank Craig Drummond for his leadership of our company over the last five years. He leaves our company in a stronger position, and we all remain committed to realising the ambition outlined for our customers, our owners and our people.
Terms of the new role
So how much does the new Medibank CEO stand to earn? The release said Mr Koczkar would be paid a fixed sum of $1.5 million a year. This will be reviewed annually and the remuneration includes cash, salary benefits and super contributions.
Moreover, he will also receive short and long term incentives. Of up to 150% of his annual total fixed remuneration based on performance.
On the news, the Medibank share price is trading slightly higher, up 0.52%.
