Cutera (Nasdaq:CUTR) announced that it made significant changes to its executive leadership to improve performance and results.
Notably, the company enacted the immediate terminations of Daniel Plants as executive chair and David Mowry as CEO. In connection with its actions, Cutera withdrew its 2023 financial outlook.
Brisbane, California–based Cutera named Sheila Hopkins as interim CEO and Janet Widmann as independent chair of the board. While these changes go into effect immediately, Cutera began a search for a permanent CEO.
Cutera’s board’s independent directors began exploring a CEO transition in November 2022, according to a news release. Plants strongly recommended the immediate termination of Mowry, indicating his desire to succeed him as CEO. Cutera said this followed a previous attempt of a similar kind by Plants to become CEO in 2021. After consideration, the board decided to seek an external CEO candidate with the assistance of an executive search firm.
The company said that, after its decision, Mowry and Plants began “an apparent campaign to seize control of the company.” They issued a press release disclosing highly confidential internal deliberations of the board. Cutera said this action fell in direct violation of employment agreements and fiduciary duties as directors and officers under Delaware law. The company also said the action “blatantly mischaracterized in a defamatory manner” the deliberations.
“The Board’s decision to terminate Mr. Mowry and Mr. Plants is consistent with our commitment to taking actions that we believe are in the best interests of the company and Cutera stockholders,” Widmann said. “Looking ahead, we remain focused on leading with clinical results, supporting practice expansion, placing the customer at the center of our partnership approach and delivering improved patient outcomes.”
About Cutera’s new interim CEO and independent chair
Hopkins joined the company’s board in May 2021 and serves as director for Prestige Consumer Healthcare. Previously, she served as president of global vision care and EVP of Bausch + Lomb. Other leadership roles came at Colgate, Palmolive, Procter & Gamble and Tambrands.
Widmann became a member of the board in December 2021. She also serves as a member of the board at Avista and Acorn Health. Previous experience includes roles as president at Kids Care Dental and EVP and chief executive at Blue Shield of California.
“My primary focus as interim CEO is to ensure we continue moving full speed ahead with respect to the AviClear strategy in order to realize the value inherent in this groundbreaking innovation, while also maintaining laser focus on our core business,” said Hopkins. “I look forward to working closely with the management team and facilitating a seamless transition of leadership today and as we bring on permanent leadership.”
The board plans to make a formal recommendation regarding the special meeting demands of Plants and Mowry “in due course.” Stockholders are not required to take any action at this time.
“Sheila is a proven leader, and on behalf of the board, we are confident that she is the right person to lead Cutera during this transitional period and thank her for stepping into the role of interim CEO as the board conducts its search,” Widmann said.