Dive Brief:
- Masimo CEO and founder Joe Kiani resigned from the company after losing his board seat last week in a proxy battle with Politan Capital Management.
- Former Johnson & Johnson executive Michelle Brennan, who was elected to Masimo’s board last year with Politan’s support, was named interim CEO effective immediately, according to a Wednesday announcement.
- Masimo reaffirmed its financial guidance for the third quarter on a non-GAAP basis. CFO Micah Young and Chief Operating Officer Bilal Muhsin said they would provide more details on an earnings call in October.
Dive Insight:
Kiani’s resignation 35 years after founding Masimo marks the start of a new chapter for the pulse oximetry firm.
Kiani lost his board seat on Sept. 19 after two years of wrangling with Politan and its managing partner, Quentin Koffey, over the company’s strategic direction. Dissatisfied shareholders elected Koffey and Brennan to the board in June 2023. Politan nominees Darlene Solomon and Bill Jellison picked up two seats at last week’s annual meeting, giving the activist shareholder group control of the board.
In the company’s statement, Brennan said the new board and management would focus on providing “seamless service and support” for customers during the transition.
“I am grateful for the trust of the Board and excited by the opportunity to help Masimo continue to grow and lead as an innovation-focused company,” Brennan said.
Brennan has more than 30 years of experience in the healthcare industry and serves on the boards of Cardinal Health and Perosphere Technologies, according to a securities filing. When Brennan retired from J&J in 2020, she held the post of global value creation leader.
Masimo has recently pursued a separation of the consumer audio business it acquired from Sound United for $1 billion in 2022.
Masimo’s board said it remains committed to the review of alternatives for both the consumer audio and consumer healthcare businesses. Masimo also said it has retained search firm Korn Ferry to assist in CEO succession planning.
Kiani has filed a claim in California state court relating to his employment agreement, according to Masimo’s securities filing.