Masimo’s CEO Joe Kiani Steps Down After Board Battle Loss

Masimo’s board of directors revealed a series of leadership and business updates for the company.
 
Current board member Michelle Brennan was named interim CEO after chairman and CEO Joe Kiani informed the board of his choice to resign as CEO.
 
The news of Kiani’s resignation follows a two-year proxy battle with Politan Capital Management. Politan gained two seats on Masimo’s six-member board in June 2023 and nominated two additional candidates this past spring amid the company’s plans to spin out its consumer business, including its home audio equipment as well as its high-tech baby monitor system and health-focused smartwatches.
 
Before its September 19 meeting, Masimo’s board is urged investors to vote against Politan Capital’s board candidates, since it would effectively oust Kiani.
 
After election by shareholders at the company’s recent annual meeting, Darlene Solomon and Bill Jellison have been appointed to the board. All of these changes are effective immediately.
 
Brennan was named to the board in 2023. She was previously a senior executive at Johnson & Johnson for over 30 years, where she oversaw medical device and consumer pharmaceutical businesses globally.
 
“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. “As we go through this transition, the Board and management team are excited to learn from and work with our employees, while focusing on ensuring seamless service and support for our customers.”
 
Masimo’s board also reaffirmed its review of alternatives for its consumer audio and consumer healthcare businesses. The board engaged Centerview Partners and Morgan Stanley as financial advisors and Sullivan & Cromwell as a legal advisor and said it would provide updates soon about value-creation initiatives, which include this strategic review.