GE HealthCare appoints William Grogan as permanent CFO
GE HealthCare said Tuesday it has appointed William Grogan as CFO, filling the vacancy left by Jay Saccaro's departure last month. Grogan joins from Xylem, where he served as CFO since October 2023. He will leave Xylem on Sept. 13 and start at GE HealthCare the following day. Analysts at Stifel and RBC Capital Markets welcomed the move, citing Grogan's track record of meeting earnings expectations, expanding margins, and integrating acquisitions.
GE HealthCare announced Tuesday that it has named William Grogan as its new chief financial officer, filling the vacancy created when Jay Saccaro stepped down last month. The appointment takes effect Sept. 14, with Grogan departing his current employer, water technology company Xylem, on Sept. 13.
Executive transition details
Grogan, who became CFO at Xylem in October 2023, will join GE HealthCare the day after leaving his current post. His arrival ends the interim tenure of George Newcomb, who will remain in his roles as GE HealthCare's controller and chief accounting officer.
Saccaro left GE HealthCare to take an expanded role covering finance and operations at Zoetis, an animal health company, according to a release from that firm.
Analyst reactions
Analysts broadly welcomed Grogan's appointment, citing his performance at Xylem and his operational focus.
In a note to investors assessing Xylem's performance during Grogan's tenure, Stifel analysts said the company met or beat earnings expectations in every quarter and fell short of revenue forecasts twice. The analysts said they are "highly optimistic" about the appointment.
RBC Capital Markets analysts also published a positive note on the appointment. Because GE HealthCare initially said it would hire a new CFO in the "coming months," Grogan's appointment occurred earlier than RBC analysts expected.
The RBC team was also encouraged by Grogan's track record, noting his history of expanding margins, simplifying operating systems, and integrating acquisitions. That track record aligns with GE HealthCare's priorities, the analysts said, particularly its ambitions to achieve mid-single-digit organic growth and raise margins toward 20% over the medium term.
Stifel analysts noted Grogan's "strong track record of leadership." The incoming CFO has "a 'no-nonsense' mindset about setting expectations, a crucial topic for the company," the analysts said. The Stifel team sees Grogan as a strong partner for GE HealthCare CEO Pete Arduini for the next phase of the company's growth and transformation.
The Stifel analysts saw no evidence that GE HealthCare's new CFO has specific medtech or healthcare experience. However, Grogan's strengths, such as his focus on "driving his companies forward with a 'lean operations mindset'," offset that gap in the Stifel analysts' view and make him an "outstanding choice" for the CFO role at GE HealthCare.