Politan Capital Management has won two board seats at Masimo Corp, including one for the activist firm’s chief investment officer, Quentin Koffey.
Along with Koffey, shareholders also elected health-care executive Michelle Brennan to the medical products maker’s five-person board, according to an announcement by Politan.
Masimo did not respond to a request for comment as of publication.
The activist claimed that preliminary analysis from its proxy solicitor showed that each of Politan’s nominees received at least 70% of the total votes cast, with 17 of the top 20 (and 43 of the top 50) shareholders voting for both Politan’s candidates.
“Michelle and I would like to thank our fellow shareholders for their support and engagement throughout this campaign, and we look forward to continuing this dialogue as directors,” stated Koffey, adding that the election result represents a mandate for changes such as improved governance, enhance capital allocation and better strategic oversight.
The victory was not wholly unexpected as the activist candidates had secured the backing of influential proxy voting advisors Institutional Shareholder Services (ISS) and Glass Lewis.
The company had warned that Politan’s bid for two seats would immediately give the activist “outsized influence” over Masimo’s leadership and future and a “clear path” to control of the company.
However, the company also pledged earlier this month to add Politan-backed Michelle Brennan to its board, but only if shareholders elected management’s two director nominees and approve the expansion of the board at the June 26 annual meeting. Politan rejected the suggestion, calling it a bluff to protect an entrenched board.
Masimo’s stock closed little changed at $162.76 per share Monday, though it was down 2.4% in after-hours trading.