Smith & Nephew has hired Namal Nawana as its new CEO, and he could be just what the company needs to keep activist investor Elliott Management Corp. at bay.
Nawana will replace Olivier Bohuon, who announced last year that he wants to retire this year. A day after Smith & Nephew announced Bohuon’s plans to retire, reports surfaced that Elliott had built a stake in the company and had begun to pressure the company to shed some parts of its business. Nawana is expected to join the company May 7 and Bohuon will be available to provide advice and assistance during a transition period.
Nawana will receive a base salary of $1.54 million a year. He did not receive a sign-on bonus or buy-out award, the company noted.
The last company Nawana led was Alere, which Abbott acquired last year after a rather rocky courtship. He is credited with leading a successful turnaround at Alere. Similarly, he spent 15 years at Johnson & Johnson and in 2011 he became worldwide president of DePuy Synthes Spine, where he oversaw a transformation program that included substantial margin improvement and the integration of Synthes following its acquisition in 2012.
Given his track record for turnarounds, the announcement could re-fuel the Smith & Nephew takeout rumors that have swirled for the past few years.
By Amanda Pedersen | MD+DI
Image Credit: Smith & Nephew
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