Masimo's New Era: A Leadership Transition and Strategic Review

In a significant turn of events, Masimo Corporation (Nasdaq: MASI) has announced a leadership transition, with Michelle Brennan appointed as interim CEO following the resignation of long-time CEO and Chairman Joe Kiani. This change comes after a two-year proxy battle with activist investor Politan Capital Management, which culminated in the election of Politan nominees William Jellison and Darlene Solomon to the Board of Directors. The Board has retained Korn Ferry to assist in the search for a permanent CEO.

Brennan, a former Johnson & Johnson executive and current Masimo Board member, brings extensive experience in medical device businesses and consumer pharmaceuticals to the role. Her track record of scaling businesses and driving innovation at J&J suggests she has the skills needed to guide Masimo through this transition period. In a statement, Brennan expressed her excitement about helping Masimo continue to grow and lead as an innovation-focused company.

The Board remains committed to the previously announced review of strategic alternatives for both the consumer audio and consumer healthcare businesses. Masimo has engaged leading financial advisors Centerview Partners and Morgan Stanley, as well as legal advisor Sullivan & Cromwell, to assist in this process. The Board looks forward to providing updates on value-creation initiatives, including this strategic review, in the near term.

Masimo has reaffirmed its financial guidance for the third quarter of 2024, indicating that the company is maintaining its focus on operational performance and expects to meet its previously stated financial targets. The company's complete fourth quarter and full-year 2024 financial results will be announced on Tuesday, February 25, 2025.



The strategic review of Masimo's consumer businesses is expected to significantly influence the company's future direction and financial performance. The potential divestment of the consumer audio business, review of the consumer healthcare business, cost reductions, margin expansion, reallocation of resources, and potential impact on earnings guidance are all factors that could play a role in shaping Masimo's future. As Masimo moves forward with this review and the search for a permanent CEO, investors will be watching closely to see how these changes impact the company's long-term growth and success.