(Reuters) – U.S. medical technology company Masimo Corp said on Thursday it will appoint two new directors to its board amid a tussle with activist investor Politan Capital Management.
The company’s independent directors also unanimously elected director H. Michael Cohen to lead all their sessions and preside at board meetings in which the chairman is not present.
Masimo’s management has been in a tussle with activist investor Politan Capital Management, which acquired a nearly 9% stake in the company in August with plans to push the company to make changes.
The California State Teachers’ Retirement System (CalSTRS) said earlier this month it was joining Politan Capital Management in challenging the employment agreement of Masimo chief executive officer and chairman Joe Kiani in the Delaware Chancery Court.
The contract promises Kiani roughly $600 million in compensation if more than one third of the company’s five-member board is voted out within a 24-month period, the board appoints a lead independent director or Kiani were no longer both chairman of the board and CEO.
(Reporting by Leroy Leo in Bengaluru; Editing by Shinjini Ganguli)
