This morning cardio giant, Boston Scientific, Inc. announced that former Zimmer Chief Executive Ray Elliott will become their new President and Chief Executive Officer.
Ray Elliott is famous in our industry for having led Zimmer 10 years first as President and then as Chairman, President and CEO. Through growth and acquisition, Elliott led Zimmer from $1 billion to $4 billion in revenues thereby creating $15 billion in incremental shareholder value. Nevertheless, Zimmer was challenged by a continuing Department of Justice investigation and oversight and lack of product innovation after Elliott's departure.
Analysts and the stock market reacted favorably to the news. Depite the sudden nature of the announcement, Elliott's experience (i) at Zimmer and (ii) as a former member of the Boston Scientific board combined with the formal handling of the transition process should ameliorate any negative perceptions.
Outgoing Boston Scientific CEO, Jim Tobin, announced his intention to retire after being at the helm for 10 years. The CEO transition will become effective July 13.
