Ultrasound-maker Butterfly Network hires former telemedicine exec as new CEO at $875,000 base salary
Publicly traded ultrasound-maker Butterfly Network has named a former telemedicine executive as its new CEO, effective on Monday.
Joseph M. DeVivo most recently served as executive chairman of Caption Health, an AI-guided ultrasound company acquired by GE in February. Prior to that, he was president of hospitals and health systems at Teladoc.
DeVivo will earn a base salary of $875,000 and is eligible for an annual bonus at 125% of that amount, according to a filing with the SEC. He’ll additionally collect a one-time sign-on bonus of $500,000, 2.4 million in stock units with the company, and a monthly housing allowance of nearly $17,000. The latter comes with the Burlington, Massachusetts, imaging vendor requiring its new leader to relocate his primary place of residence.
“Joseph DeVivo’s proven commercial success, deep understanding of the market and ability to think strategically to scale and run businesses over a three-decade career were essential criteria in our search for a new CEO,” Jonathan Rothberg, PhD, Butterfly Network’s founder and now-former interim chief executive, said in an announcement “His industry and commercial expertise, paired with his dedication, make him the ideal candidate to lead Butterfly.”
Rothberg first founded the firm in 2011 and the company went public on the New York Stock Exchange in February 2021. Butterfly offers what it says is the world’s first handheld, single-probe, whole-body ultrasound system using semiconductor technology. The company also merged with an affiliate of hedge fund Glenview Capital Management in late 2020 in a deal valued at $1.5 billion.
Butterfly Network previously appointed former 3M exec Todd M. Fruchterman MD, PhD, as CEO in early 2021. But the two sides mutually agreed to part ways in December. The company reported an adjusted earnings loss of about $140 million in 2022 and was tightly managing expenses at the tail end of the year, including staff reductions.
Butterfly made news earlier this month after scoring FDA clearance for a new artificial intelligence-enabled lung tool.
“I am thrilled to be joining Butterfly Network as president and CEO at this pivotal moment in its journey as the company continues to drive progress in the adoption of accessible, affordable and portable imaging technology,” DeVivo said in the announcement.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.