Former Five Star Senior Living (Nasdaq: FVE) COO Scott Herzig has left the company.
Herzig’s employment with the Newton, Massachusetts-based senior living owner and operator ended on Dec. 12, according to an SEC disclosure filed Monday. Herzig ended his roughly 18-year tenure with the company as senior vice president of senior living operations, a position he assumed in May.
“Five Star is grateful to Scott for his contributions and we wish him well in his future endeavors,” the company wrote in a statement to Senior Housing News. “We are looking toward to 2019 with a commitment to growth and capturing new opportunities.”
This is the latest personnel announcement for Five Star, which is facing substantial operational and financial woes. Last week, the company announced Katherine Potter will take the reins as CEO and president on Jan. 1, one day after outgoing CEO Bruce Mackey is set to retire from the company.
Potter, 42, first joined Five Star in 2012, and works as the company’s executive vice president and general counsel. In connection with his retirement, Five Star, along with its business manager The RMR Group, entered into an agreement with Mackey under which he will be paid $10,000 per month as he aids with Potter’s transition into the role, according to an SEC filing. He will also get a cash payment from Five Star in the amount of $600,000, and the company will release certain payments in the aggregate amount of $550,000.
Five Star as of Sept. 30 owned, leased or managed 283 senior housing communities in 32 states, including independent living and assisted living communities, continuing care retirement communities (CCRCs) and skilled nursing facilities (SNFs). Five Star is the fourth largest senior housing operator in the country by unit count.
The company’s recent struggles have been well documented, and its leadership is still considering a bevy of options going forward. Its current challenges “raise substantial doubt about our ability to continue as a going concern,” Mackey said during a third-quarter earnings call in November.
Written by Tim Regan