Boston Scientific (NYSE:BSX) officially handed the corner office over to Michael Mahoney today, marking the end of a year-long "transition period" for the new CEO.
The day came without fanfare for the medical device company, with a veritable media freeze on the new head man as he embarks on what is likely to be a busy 1st day at the helm.
Mahoney, 47, has spent just over a year at Boston Scientific as president, after being recruited from rival device maker Johnson & Johnson‘s (NYSE:JNJ) diagnostics and devices group.
Late last year Boston Scientific announced Mahoney as the successor to former CEO J. Raymond Elliott, who manned the corner office for 2 years before announcing his retirement in May 2011. Elliott officially retired in October 2011, the day Mahoney joined the company.
"Really, the opportunity was too good to pass up," Mahoney told MassDevice.com about the decision to accept the job at Boston Scientific.
He left behind a promising career and good friends, but the chance to effect a turnaround at a top-tier device maker was too appealing, he told an audience at MassDevice.com’s Big 100 Roundtable East event in Waltham, Mass., last July.
Boston Scientific’s Mike Mahoney on leaving JNJ
Mahoney’s appointment came with some strings attached – he was unable to immediately take over as CEO due to J&J’s enforcement of a non-competition agreement.
The deal required that Mahoney’s duties as president exclude business lines that compete with J&J, including divisions that accounted for about 57% of BSX’s revenues last year, analysts said.
Hank Kucheman, who was the executive vice president and group president of the cardiology, rhythm and vascular group, stepped up to serve as interim CEO until Mahoney could assume the role. Kucheman has been driving the ship since October 2011, but Mahoney has played a prominent role, speaking at industry conferences and during earnings calls.
"Mike and I have worked closely and very effectively together in our respective roles over this past year," Kucheman said in the company’s most recent quarterly earnings call. "Mike Mahoney is the right leader at the right time to return BSC to its rightful place in the medical device marketplace, period."
