Genworth Financial Inc reported that Chief Executive Officer Tom McInerney will take a temporary leave of absence to address health matters, a move that coincided with a 1.9% drop in the company's shares during after-hours trading on Tuesday.
The company's Board of Directors named Jerome Upton, who is the current Chief Financial Officer, as Interim President and Chief Executive Officer, effective immediately. The board emphasized continuity in leadership as it implements the interim transition.
Board comment
Melina Higgins, who serves as Genworth's Board Chair, conveyed support for McInerney and his family, stating: "Our thoughts are with Tom and his family as he recovers, and we look forward to his return." Higgins added that the company is well positioned for continued success and cited a strong bench of talented leaders as a reason for confidence.
Leadership background
McInerney has held the roles of President and CEO at Genworth since January 2013. During his tenure, company communications say he led programs focused on operational improvement, positioning the business for growth, and reinforcing the company's financial foundation while returning capital to shareholders.
Jerome Upton brings long tenure at the organization to the interim role. He has been with Genworth and its predecessor entities since 1998 and has served as the company's Chief Financial Officer since March 2023. Over his time with the firm, Upton has held executive leadership positions spanning finance and operations across multiple business lines and geographic regions.
Business lines and holdings
Headquartered in Richmond, Virginia, Genworth operates through a collection of brands that include CareScout, Genworth, and Enact. The company offers services intended to assist with caregiving decisions, long-term care planning, and financial challenges associated with aging. Genworth is also the majority owner of Enact Holdings, Inc. (NASDAQ: ACT), a mortgage insurance provider.
Market reaction and immediate implications
The announcement prompted a modest decline in Genworth's stock in after-hours trading. The board's public remarks framed the change as temporary and reaffirmed confidence in the company's management depth while McInerney focuses on recovery.
Details about the expected duration of the CEO's leave were not provided in the company's announcement. The board indicated an expectation of McInerney's return, but offered no timetable for that return.