The new structure creates four top managers who will report directly to the company CEO. All other executives will report to those managers.
With the end of the year fast approaching, Illinois-based AbbVie has restructured its executive leadership team. In its announcement, AbbVie said the changes to its leadership structure will streamline its organizational structure and long-term growth strategy.
Late Monday, the company announced that it will consolidate its leadership team into four managers who will report directly to Chairman and Chief Executive Officer Richard A. Gonzales. In a brief statement outlining the new structure, Gonzales said the company has grown significantly over the past six years and the reorganization of the senior leadership team is designed to match its talent, operating model and support long-term growth.
“We are fortunate to have a deep pool of senior leadership talent, and this streamlined structure will enhance our ability to execute against our long-term strategies, provide additional scope for our senior leaders and facilitate our ability to meet our commitment to continuing to deliver value to all of our stakeholders, including patients, employees, shareholders and the communities we serve,” Gonzales said in a statement.
The new top four managers at AbbVie include some names that watchers are well familiar with.
Michael Severino, AbbVie’s head of research and development and chief scientific officer, was given the title vice chairman and president. Severino will have a wider responsibility. Not only will he oversee the company’s research and development programs, but he will also be responsible for human resources, operations, and the corporate strategy office.
AbbVie General Counsel and Corporate Secretary Laura J. Schumacher has been named vice chairman of external affairs and chief legal officer. Schumacher will be responsible for legal, ethics and compliance, corporate governance, corporate aviation and all externally facing functions including health economics outcomes research, government affairs, corporate responsibility, brand, and communications.
Carlos Alban, who currently serves as head of commercial operations, has been named vice chairman and chief commercial officer. Alban will be responsible for global commercial operations of the Company, including the addition of Pharmacyclics commercial functions, the company said.
Lastly, William J. Chase will remain in his role of executive vice president in charge of finance and administration. In this role, Chase will be responsible for all financial and administrative functions of the company.
The rest of the company’s leadership team, including Karen Hale, chief ethics and compliance officer, as well as Chief Financial Officer Robert Michael, will report to the four top managers.
For AbbVie, the changes in leadership structure are coming at a time the company is looking to develop other strong pipeline drivers behind its lead product, Humira. Last year, Humira generated more than $18 billion for AbbVie and other companies are developing rival products, including biosimilars, to cut into that cash cow. AbbVie, of course, has been doing what it can to protect that revenue stream.
While Humira has generated billions of dollars for the company, AbbVie has shown that it can be a good corporate citizen. This year the company has donated more than $350 million to various charities, including a $50 million gift to St. Jude Children’s Research Hospital last week.
