Masimo management trades blows with activist investor Politan
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Masimo management trades blows with activist investor Politan

May 04, 2023

May 31, 2023 By Jim Hammerand

The fight for two seats on the Masimo (NYSE: PHG) + "}" data-sheets-userformat="{"2":769,"3":{"1":0},"11":3,"12":0}"> (Nasdaq: MASI) + board is heating up ahead of the medtech developer's annual shareholder meeting next month.

Masimo management and activist investor Politan Capital Management released dueling presentations over the last 24 hours in support of their respective director nominees.

Previously: Masimo beats the Street in Q1 ahead of proxy fight; CEO discusses Apple mistrial

Politan Managing Partner and Chief Investment Officer Quentin Koffey yesterday called for "greater oversight in the boardroom [to] help Masimo realize its full potential."

"Masimo's broken corporate governance has resulted in a deeply discounted valuation and an inability to profitably innovate and grow," he said in a news release. "Unfortunately, Masimo's board fails to recognize that shareholder-driven change is needed, as demonstrated by the board's hostile approach to our engagement, misleading public statements and baseless attacks against Politan. While this behavior is disappointing, it is not surprising given the company's long history of avoiding accountability."

Masimo's management team, led by founder, CEO and Chair Joe Kiani, defended their record, saying today that they’ve "delivered strong returns for investors through sustained profitable above-market growth."

"Masimo's strategy leverages core competencies to extend growth in core and new markets [and] create value for all shareholders," the company said in its own news release today. "Masimo's board has engaged extensively with shareholders and acted on their feedback. Quentin Koffey's unprincipled, self-serving behavior and dangerous agenda jeopardize Masimo's long-term potential."

Politan, which owns around 9% of Masimo, asked shareholders to vote for its board director nominees: Koffey and Michelle Brennan, a 32-year Johnson & Johnson veteran who retired as global value creation leader in 2020. The investment firm supported its campaign with a presentation detailing its concerns with spending, strategy and corporate governance.

Masimo, on the other hand, is supporting its incumbent nominees for re-election: H Michael Cohen and Julie Shimer. Masimo's presentation outlined its strategy, results, changes to its governance and compensation policies, and opposition to Politan and its nominees.

Previously: Masimo shareholders vote ‘no’ on executive pay

Masimo's annual meeting is scheduled for June 26, 2023.

Filed Under: Blog, Business/Financial News, Featured, News Well, Patient Monitoring Tagged With: Masimo, Politan Capital Management