Elliott (l) and Hawkins
Boston Scientific Corp. (NYSE:BSX) and Medtronic Inc. (NYSE:MDT), locked in a seemingly eternal blood feud over market share in the cardiovascular market, now have another competition: The hunt for a new CEO.
BSX chief Ray Elliott announced yesterday that he will step down at the end of the calendar year, less than two-and-a-half years after taking the position. The 61-year-old turnaround artist’s decision leaves more than seven months for what is sure to be a thorough search for a replacement — and lots of scuttlebutt flying around among industry insiders.
A special CEO search committee will seek candidates to replace Elliott from “both inside and outside of the company,” Erik Kopp told MassDevice yesterday. “Those most qualified for the position will be considered.”
If Natick, Mass.-based Boston Scientific looks outside the company, they’ll be fishing in the same pond as Medtronic, which hasn’t had an easy time in finding a replacement for Bill Hawkins. He announced early in 2011 that he planned to step down at the end of Medtronic’s fiscal year April 30, but recently agreed to postpone his departure for an indefinite period.
While MDT officials have been mum on the reasons for the delay, it appears likely that the company is having some trouble finding an acceptable replacement. Maybe they should call Ray.
Should BSX look inside, a quick scan of its bench reveals a few candidates who could step up into the position immediately. COO Sam Leno is certainly in the running as someone to tap to see Elliott’s turn-around plans through. Leno, 65, is a former Elliott lieutenant at Zimmer Holding, Inc. (NYSE:ZMH) who knows the outgoing CEO’s playbook well. He also has significant knowledge of Boston Scientific, where he’s been since 2007. Leno has served as the company’s CFO, COO and the executive vice president of finance and information systems during his four years in Natick.
Another internal candidate, CFO Jeffrey Capello, would be a generational shift for BSX. The former PerkinElmer (NYSE:PKI) SVP, who is 46, was hired in 2008 and tapped for CFO in March 2010, replacing Leno in a re-shuffling of the deck last year. (Since Elliott took over, Boston Scientific has made major changes to its senior management, turning over 75 percent of its top-level roster.)
Capello has taken an increasingly visible role during earnings calls and investor conferences since becoming finance head, a possible sign that he’s being groomed for bigger things.
General counsel Timothy Pratt, who is also chief administration officer, is another potential candidate, albeit a dark horse. Pratt was hired in 2008.
