Dive Brief:
- Masimo Chief Operating Officer Bilal Muhsin has notified the company’s board that he will step down if Joe Kiani is removed as chairman and CEO, according to a securities filing Monday.
- The COO “strongly disagrees” with accusations by activist investor Politan Capital Management and has “no intention of remaining with the company if Quentin Koffey and Politan take control of it,” Muhsin told Craig Reynolds, Masimo’s lead independent director, in a June 26 letter. Koffey is Politan’s chief investment officer.
- The conditional resignation is not due to any disagreement over Masimo operations, Muhsin added in his letter.
Dive Insight:
Politan, led by Koffey, has criticized Masimo management and the company’s $1 billion acquisition of consumer audio company Sound United. The activist shareholder is now attempting to oust Masimo founder Kiani from the company, which is set to hold its annual meeting on July 25.
Politan has nominated Darlene Solomon, former chief technology officer at Agilent Technologies, and William Jellison, former CFO at Stryker, for board seats.
Last year, Politan successfully backed Koffey and Michelle Brennan, a former Johnson & Johnson executive, for seats on Masimo’s board.
In addition to supporting Kiani, Masimo is urging shareholders to vote for Christopher Chavez, former CEO of medtech companies Trivascular and Advanced Neuromodulation Systems, for a seat on its board.
Masimo, a specialist in pulse oximetry technology, is preparing to separate its consumer business, including the Stork monitor, Freedom smartwatch and audio products.
The company remains in discussions with a potential joint venture partner that may be interested in acquiring a majority stake in its consumer business, Masimo said in the latest filing.
“I strongly believe in Masimo’s current team, and I know we are on the right path and will succeed if we are given the opportunity,” Muhsin said in the letter.
