by Jason Snell
Masimo founder resigns as CEO after removal from board
Some interesting news regarding Masimo, the company that is locked in disputes with Apple over its patents for blood oxygen sensors that has led to that feature being removed from the Apple Watch in the U.S.: Joe Kiani, the company’s firebrand founder and CEO, has resigned as CEO after losing a shareholder vote and being kicked off the company’s board of directors. Reuters reports:
Masimo said on Wednesday founder Joe Kiani has decided to step down as the medical device maker’s CEO, days after shareholders voted to remove him from the company’s board following a bitter proxy battle with activist hedge fund Politan Capital Management. The company named veteran healthcare executive, Michelle Brennan, as interim chief.
Bloomberg’s excellent financial columnist Matt Levine has some extra analysis about the series of steps that could lead to a founder and board chair to completely lose control—it involves unhappy shareholders and freezing out a board you disagree with.
Hanging in the air is this question: With Kiani gone, will Masimo’s board be more willing to cut a deal with Apple to end its dispute over the Apple Watch? If this whole thing has been a cold-eyed dispute over cash, maybe not. But if personal animosity was involved, maybe this change will shake things up.