Teladoc CEO departs the company after stock’s 95% fall from 2021 highs

Teladoc Health on Friday announced the sudden departure of CEO Jason Gorevic, who is leaving his role as head of the company effective immediately, according to a release.

The company’s board of directors has temporarily appointed Mala Murthy, chief financial officer, as Gorevic’s replacement and hired an executive search firm to determine a permanent successor.

Shares of Teladoc were mostly flat in premarket trading Friday but are down about 34% year-to-date. The stock has also fallen about 95% from a high of $294.54 in February 2021 to about $14 as of Friday, a level it hasn’t traded at in about eight years.

“We thank Jason for his many achievements and contributions during the 15 years he led Teladoc Health. We wish him success in his future endeavors,” David Snow Jr., Teladoc board chair, said in the release.

Teladoc is a virtual health care company that offers telehealth appointments with doctors, therapists and specialists.

Gorevic joined the company as CEO in 2009, steering Teladoc through the Covid-19 pandemic that left most health care providers scrambling to adapt to a virtual format.

“I am proud of the impact we’ve made on the healthcare system, and our many accomplishments in advancing innovation and transforming virtual health care from an unrealized promise into a valued reality for our 90 million members,” Gorevic told CNBC in a statement.

Murthy has led Teladoc’s finance organization since 2019. She previously held executive positions at American Express and PepsiCo. Murthy said in a letter to employees Friday that she’s focused on honoring Teladoc’s commitments to clients and members and ensuring the “company continues to operate effectively.”

Teladoc’s board reaffirmed that the company is on track to meet its guidance for the first quarter and full year. It did not share any other details about the reason behind Gorevic’s departure.

The company did not offer any additional comment.