By Joshua Kirby
Orpea SA said Monday that it is appointing Laurent Guillot as chief executive to help transform the scandal-hit French nursing-home operator.
Mr. Guillot will take the helm July 1, succeeding Philippe Charrier, Orpea said.
Mr. Charrier has been CEO only since the end of January, when he succeeded Yves Le Masne following malpractice allegations that sent the company's share price plummeting and triggered calls for new regulation of the care-home sector from a number of French politicians and legislators.
An independent investigation initiated by the company and published last week showed that there was no organized system to mistreat residents at Orpea-run homes, though it did demonstrate that some failures require change, Orpea said. The company said it has already initiated some measures in response, including establishing a listening unit for families and a mediation unit, as well as strengthening its employee whistle-blowing system.
Mr. Guillot's appointment to the board of directors will be proposed at a shareholders' meeting scheduled for July 28, alongside the appointment of at least three new directors, Orpea said. He will act as an adviser to Mr. Charrier, who is also chairman of the group, until he takes up his positions, the company added.
"The appointment of Laurent Guillot as chief executive officer will enable the group to begin a new stage and launch the in-depth transformation process that will lay the foundations for the new Orpea," Mr. Charrier said.
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