NEW YORK - Politan Capital Management, holding an 8.9% stake in Masimo (NASDAQ:MASI) Corporation (NASDAQ:MASI), has nominated two candidates for the company's board of directors. This move comes ahead of Masimo's 2024 Annual Meeting of Stockholders and follows concerns over the current board's governance and oversight.
Quentin Koffey, Managing Partner and Chief Investment Officer of Politan and a current director on Masimo's board, criticized the company's governance practices. He highlighted that since his election to the board last year, efforts to drive positive change have been obstructed by Masimo's Chairman & CEO Joe Kiani. Kiani is accused of withholding information, denying access to management, and excluding Koffey and another director from board meetings.
Politan has advocated for a strategic review to consider separating Masimo's Consumer Business. However, the investment firm has raised serious doubts about the process due to the lack of transparency and independent oversight within the company. Koffey expressed concerns about the potential misallocation of intellectual property and control in the event of a spin-off, which might be designed to maintain Kiani's influence over both entities.
To address these issues, Politan has identified Dr. Darlene Solomon and William "Bill" Jellison as nominees who could bring essential expertise and independence to the board. Dr. Solomon, with a 39-year career at Agilent Technologies (NYSE:A) and experience in overseeing corporate separations, could provide valuable insight into the appropriate division of Masimo's intellectual property. Jellison, a veteran medical technology executive and former CFO of Stryker Corporation (NYSE:SYK), would offer financial oversight expertise and experience in evaluating separation transactions.
Politan suggests that these directors could be added without the need for a proxy contest, emphasizing their qualifications and the potential to avoid a costly and distracting election.
This report is based on a press release statement from Politan Capital Management.
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