At a Glance

  • Zoetis announced in securities filings and a press release submitted Thursday that it has appointed former GE HealthCare CFO Jay Saccaro as its new CFO and COO, effective August 17.
  • With this appointment, Zoetis' current CFO Wetteny Joseph will transition to the role of special advisor to the company (headquartered in Parsippany, New Jersey, focused on developing medicines and vaccines for pets and livestock), effective August 16. According to the filing submitted to the U.S. Securities and Exchange Commission, Joseph will remain with the company in a non-executive capacity until February 28, 2027, or an earlier mutually agreed termination date. His departure is not due to any disagreement with the company.
  • Zoetis CEO Kristin Peck said in a statement released Thursday that Saccaro "brings a unique combination of skills to this newly created leadership role. Jay has an outstanding track record of building financial frameworks that balance R&D investment with operational rigor and efficiency, which will be a valuable asset as we enhance our competitiveness and invest in future growth platforms."

Dive Insight

Saccaro's appointment follows GE HealthCare's announcement that he would step down as CFO, after CFO Dive previously reported his departure after three years in the role. GE HealthCare Chief Accounting Officer and Comptroller George Newcomb will serve as interim CFO starting August 14.

According to Saccaro's LinkedIn profile, before joining GE HealthCare (spun off from General Electric in 2023), he served as CFO at Baxter International for nine years.

According to the SEC filing, Saccaro will receive an annual base salary of $1 million as CFO and COO. He will also be eligible for an annual target bonus equal to 100% of his base salary, as well as an annual target long-term incentive worth $5 million, consisting of a mix of restricted stock units, stock options, and performance stock units.

The filing shows Saccaro will also receive a one-time "make-whole" restricted stock unit award valued at approximately $6.2 million, as well as a one-time cash compensation award of approximately $1.2 million, which may be subject to repayment if his employment is terminated "under certain circumstances" within his first year.

Saccaro's appointment comes as Zoetis seeks to invest in new growth opportunities, with Peck noting on Thursday's second-quarter earnings call that persistent economic headwinds have changed the "competitive landscape" of the business.

She said the company is "acting with urgency" to ensure it maintains market leadership and drives growth, including "aligning the leadership team to more closely support" the execution of these initiatives.

According to the call transcript, Peck said the newly created dual CFO and COO role will allow Saccaro to "oversee all financial functions as well as global manufacturing and supply." "We are at a pivotal moment that demands speed and agility, and this change is designed to enable faster decision-making, stronger connectivity across the supply chain, and acceleration from strategic planning to execution. We believe we have found the right leader with the right background for this new role."

Zoetis' second-quarter results for the period ending June 30 fell short of expectations: according to Thursday's earnings report, net income declined 5% year-over-year to $691 million. Meanwhile, quarterly revenue was roughly flat year-over-year, down 1% on an operational basis, to $2.5 billion.

Peck said Thursday that these results stem from pet owners becoming "more discerning" in their spending due to rising prices, which has affected veterinary visits and purchasing patterns. Additionally, new entrants are entering the market and competing for patients with higher discounts and other incentives.

"These are broad pet care market dynamics, not unique to Zoetis, but given our leadership position, they impact us more," Peck said. "Competitive intensity has increased, and many of the categories facing the most pressure are ones that Zoetis pioneered or helped establish as standards of care."