Lincoln’s departing CEO nixes analyst speculation

NEW YORK — Jon A. Boscia’s retirement announcement this month has nothing to do with the company’s merger prospects or its financial performance, according to the chief executive and chairman of Lincoln Financial Group.
“Mr. Boscia was a fiercely independent CEO who was hesitant to allow Lincoln to become a takeover candidate. With his departure, Lincoln could come into play as an acquisition target,” said Rob Haines, an insurance industry analyst with CreditSights in New York.
In an interview, Mr. Boscia called such speculation “nonsense.”
Empty dance card
“Lincoln — whether with me or without me — always had and always will have the choice to remain independent or not. The driving consideration is shareholder value,” Mr. Boscia said.
“I don’t believe in career CEOs,” said the 55-year-old executive. Mr. Boscia said that he is retiring Aug. 31 after 10 years at the helm of the Philadelphia-based insurer. He added that he has “no other positions lined up” and is leaving so his successor as chief executive, Dennis R. Glass, will have an opportunity to run the company.
Mr. Glass, Lincoln’s president and chief operating officer, was previously chief executive of Jefferson-Pilot Corp. in Greensboro, N.C., and joined Lincoln when the two companies merged last year. J. Patrick Barrett, a Lincoln director, is the new chairman.
Both men assumed their additional responsibilities July 6, the day of the retirement announcement.
“I don’t read anything into the immediacy of the transition,” said Andrew Edelsberg, assistant vice president in the life/health division of A.M. Best Co. Inc. in Oldwick, N.J., a financial-rating firm. “Boscia and Glass have worked together since the merger, so a long transition period — which might have been needed if a successor came from outside — wasn’t required.”
The timing of the retirement announcement was unrelated to Lincoln’s earnings report, due out later this month, and the earnings guidance hasn’t been changed, Mr. Boscia said. Rather, the timing was influenced by the start of meetings on Lincoln’s three-year plan, and he wanted the plan to have Mr. Glass’s imprimatur rather than his own.
“We are not expecting any earnings surprises and consider the executive changes a ratings-neutral event,” said Kevin Ahern, a director and sector specialist in the life insurance division of Standard & Poor’s in New York.
Mr. Boscia, who serves on the board of The Hershey (Pa.) Co., said that he is open to exploring opportunities to serve on the boards of other companies and organizations.