Tom Elkin Announces He’ll Quit July 1 as Chief of CalPERS Health Benefits Services

Tom J. Elkin announced his resignation Monday as chief of the California Public Employees Retirement System’s health benefits services in order to pursue a career in private health care consulting.

Elkin’s resignation will take effect July 1, culminating 25 years of state service.

Elkin, 53, has served as the top health programs manager since 1991.

According to CalPERS, overall premium rates in the system’s health program have “been significantly reduced, resulting in a savings of over $90 million.”

* Maxicare Health Plans Inc. announced that Warren Foon, corporate vice president for operations, has been named vice president and general manager for Maxicare California.

Foon has been with Maxicare for nine years and has extensive provider-relations and pharmacy experience.

Foon succeeds William Caswell as vice president and general manager of the California operation. Caswell will continue at Maxicare, working on developing new corporate business opportunities.

Los Angeles-based Maxicare Health Plans is a managed health care company.

* The competition over who will lead W.R. Grace & Co. was won by an outsider, former American Cyanamid Co. Chairman Albert Costello, who has experience in similar industries.

Grace has been in upheaval since March, when Chief Executive J.P. Bolduc was ousted over sexual harassment allegations and J. Peter Grace Jr. was forced out as chairman by directors angered over expensive corporate-sponsored perks for him and his family. Grace, 81, died a month later of lung cancer.

A chemist by training, Costello, 59, left American Cyanamid Co. in December when the drug, medical supply and farm chemical company was taken over by American Home Products Corp.

Grace’s business focus is specialty chemicals and health care.

* Continental Airlines Inc. said it has named Gregory D. Brenneman chief operating officer and a member of the board.

Brenneman, 33, has served as a consultant to the Houston-based carrier since 1993 and most recently worked on the Go Forward Plan with Gordon M. Bethune, Continental president and chief executive.

Before coming to Continental, Brenneman was a vice president at Bain & Co.

* Charles A. Sanders resigned as chairman of Glaxo Inc. to devote his time to running for the U.S. Senate, the company announced.

Sanders, a Democrat, plans to challenge Sen. Jesse Helms (R-N.C.) in 1996.

Glaxo Inc. is the U.S. subsidiary of Glaxo Holdings, the British drug company that recently bought competitor Wellcome to create the largest drug maker in the world.

Sanders moved to Glaxo Inc. as chief executive in 1989 from Squibb Corp., which was acquired by Bristol Myers Co. that year.

A successor was not immediately named.

* Donald Moffitt, chief executive of Consolidated Freightways Inc., has been elected to the added post of chairman, effective immediately.

Moffitt, 60, succeeds Raymond O’Brien, 72. O’Brien, who has had a 37-year career with Consolidated Freightways, served as chairman since 1979.

Moffitt was elected chief executive and president in 1991 and has been credited with a turnaround at the Palo Alto-based transportation company.