Masimo taps Becton Dickinson executive Katie Szyman as CEO

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(This Jan. 21 story has been corrected to fix the share price gain to 57% from 45% in paragraph 6)

(Reuters) – Masimo named Becton Dickinson executive Katie Szyman as its top boss, the medical device maker said on Tuesday, months after longtime CEO and founder Joe Kiani was ousted in a bitter proxy battle with Politan Capital Management.

Szyman, who currently serves as president of Becton’s patient monitoring unit, joined after the company last year acquired Edwards Lifesciences’ critical care division, which she had headed.

“We see this as a satisfying conclusion to the search for former CEO Joe Kiani’s successor as Masimo transitions back to a pure-play healthcare company,” said BTIG analyst Marie Thibault.

Interim CEO Michelle Brennan, who was backed by the activist investor, was appointed chairman of Masimo’s board, and Politan founder Quentin Koffey was named the vice-chairman. The new appointments will be effective on Feb. 12, the company said.

In September, Masimo shareholders took the unusual step of ousting Kiani from the board while also handing an additional two seats to Politan, which had already won two seats in 2023.

As of Tuesday’s close, the company’s shares had gained about 57% since the shareholder vote.

Politan, which owns nearly a 9% stake in Masimo, has long criticized the company’s capital allocation and board oversight and expressed concerns about its $1 billion purchase of consumer audio products maker Sound United.

Masimo and Apple are engaged in a legal battle over a patent dispute on the blood oxygen sensors in newer Apple Watch models, forcing the iPhone maker to sell the devices without the feature.

Masimo said on Tuesday it continued to evaluate alternatives for its consumer business, which includes health-tracking watches and audio devices, after it received offers of up to $950 million last year.

(Reporting by Mariam Sunny in Bengaluru; Editing by Alan Barona and Sriraj Kalluvila)