Acadia Healthcare names Todd Young as CFO amid activist investor pressure

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(Reuters) -Acadia Healthcare said on Tuesday it has appointed Todd Young as chief financial officer, amid growing pressure from activist investors to improve performance and governance.

Young takes over on October 27 from Tim Sides, who had served as interim CFO since August and will return to his role as senior vice president of operations finance.

Young joins Acadia from Elanco Animal Health, where he served as CFO since 2018, helping shape the company’s strategy following its separation from Eli Lilly.

The appointment at Acadia comes as it faces calls for strategic changes from two of its largest shareholders — Khrom Capital and Engine Capital — which together own more than 8% of the company.

Khrom Capital, which owns a 5.5% stake in Acadia, has called for a strategic review including a potential sale earlier this month, citing long-term underperformance and governance issues.

Late last month, Engine Capital, which owns about 3%, called for operational changes, asset sales, and a board overhaul.

The investor criticized Acadia’s cost-heavy growth strategy under CEO Christopher Hunter and pushed for the replacement of long-tenured directors with candidates experienced in behavioral health and capital allocation.

Acadia’s shares have fallen 31% so far this year, underperforming healthcare peers.

Acadia, which operates behavioral healthcare facilities across the U.S., said the Young’s appointment aligns with its strategy to drive operational efficiency and expand access to care.

(Reporting by Siddhi Mahatole in Bengaluru; Editing by Shailesh Kuber)