Masimo Corporation (Nasdaq: MASI) announced that it has expanded the company’s Board of Directors with two new appointees. The medical products manufacturer, which also owns the Sound United audio brands, will now have a total of eight directors on its board.
See more on the expansion of the Masimo Board
Masimo has unexpectedly announced a further expansion of its Board of Directors by appointing Timothy J. Scannell and Wendy E. Lane as its newest directors. These appointments are effective immediately.
The company says that these new directors bring critical experiences with them that will serve to expand the skill set of the sitting Masimo Board. One of these new additions, Mr. Scannell, was the President and CEO of mega-medtech company Stryker Corporation…and the other, Ms. Lane, has substantial experience in finance/equity/investment areas, as well as an extensive resume of serving on corporate boards, with special expertise in board governance matters.
Timothy J. Scannell and Wendy Lane Join the Masimo Board of Directors
We are pleased to welcome Tim and Wendy as our newest independent directors. Both are high-caliber professionals who will bring critical perspectives to the Board and possess expertise that closely aligns with our key focus areas. Tim’s background leading highly successful commercial organizations in the medical technology sector – including during his time as President and Chief Operating Officer of Stryker Corporation – will make him an ideal fit immediately. Wendy’s vast experience overseeing corporate governance changes and serving in board leadership roles will be highly additive as we refocus the organization. We look forward to working alongside Tim and Wendy as we capitalize on the exciting opportunities ahead for Masimo and position the Company for continued growth.
Quentin Koffey, Masimo Corporation Lead Independent Director
While the announcement by Masimo was unexpected, it was not a total surprise. Over the last year or two, both Quentin Koffey and Michelle Brennan who joined the Masimo board in 2023 as Politan nominees, expressed concerns about how small the board was at Masimo. This caused a round of discussions with a general agreement with the legacy directors that the board would be expanded to the average number of directors for a business its size. Brennan is now the interim CEO of Masimo.
Previous Board Not Independent Enough, Koffey Says
Also, the new independent directors voiced other concerns, such as the fact that board members seemed to be chosen largely due to their personal relationship with former Chairman and Founder Joe Kiani rather than directly relevant experience in Masimo’s business segments. The clubby atmosphere of past Masimo boards seemed to show that they were not independent enough from the Chairman and CEO, leading to what Koffey – and many investors – felt were poor business decisions by company management simply signed off on by the overly friendly Board.
It appears to me that Koffey is implementing a more professional board construction, as new independent directors elected at this year’s Stockholders meetings last month, both nominated by Politan, have each offered a resume of relevant experience. These new Masimo directors include William “Bill” Jellison whose experience includes a stint as CFO at Stryker Corporation – a $20+ billion medtech company well respected in the medtech segment; And Darlene Solomon, who was a Chief Technology Officer and Vice President of Agilent Technologies.
New Board Members Carry Substantial Resumes with Medical & Financial Experiences
And this trend continues, with the newly appointed Masimo directors possessing impressive credentials. Mr. Scannell, in 2023, retired from a 30+ year career at Stryker Corporation as President and Chief Operating Officer. Masimo’s announcement notes that Stryker is “one of the world’s leading medical technology companies.” Indeed…Stryker does business in 75 countries… employs 52,000 people…and serves 150 million patients every year. Prior to the role mentioned above, Mr. Scannell was Stryker’s Group President for its MedSurg & Neurotechnology businesses, a position he held for ten years before being elevated to overall President and COO. Finally, Mr. Scannell currently serves as a director on the Boards of Insulet Corporation, a medical device company, and Novocure Limited, an oncology company.
It’s an honor to be joining Masimo’s Board. I believe strongly in the Company’s mission and have long admired its accomplishments and focus on innovation. I look forward to drawing on my experience to help Masimo deliver even better outcomes for patients, employees and shareholders.
Timothy J. Scannell
A Focus on Finance
Wendy Lane’s experience appears more financially focused, albeit in a medical context in a couple of cases. According to the Masimo announcement, Lane has served on the boards of 16 companies over the last 32 years. Of this total, the announcement notes that she has specifically “sat on and/or chaired seven audit committees.” Ms. Lane has also served on compensation, nominating/governance, strategic alternatives, and other committees. Her selection certainly appears to represent a heavyweight upgrade in oversight of Masimo’s management and operations.
Ms. Lane has served as Chair of Lane Holdings, Inc., a private equity investment company, since 1992. She is currently a director of Verisk Analytics (data, analytics, and risk assessment), YourBio Health, Inc. (blood collection technology and devices), and CAC Holdings, Inc. (insurance). Beyond these, she has served on boards for a plethora of financial/property/wealth management firms and one other medical-related firm – Laboratory Corporation of America, a clinical laboratory company.
‘An Internationally Recognized Governance Expert’
According to directorsandboards.com, Lane is “an internationally recognized governance expert. She has spoken at Harvard Business School. Stanford Law School, the Wharton School, and other venues…”
I am excited to work alongside Masimo’s other talented directors as we chart the course forward for the Company. I have deep respect for the Masimo team’s work, which has improved the lives of countless individuals, and I am eager to be a part of the Company’s next chapter.
Wendy E. Lane
Sound United Status
There is still no word yet on the status of the Sound United business, also known as Masimo Consumer. Rumors do abound and CFO Micah Young has said Masimo has been approached by multiple interested parties in the audio business – but not the consumer healthcare products which are said to be doing poorly.
We await guidance on Sound United’s future.
To learn more about Masimo, visit masimo.com.
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