Smith & Nephew chief executive to stand down after pay row

Namal Nawana to be replaced by Roland Diggelmann at medical equipment maker

The chief executive of Smith & Nephew will step down after only 18 months in the job following a row over his pay.

The company, which makes artificial knee and hip joints as well as wound dressings, said Namal Nawana would stand down on 31 October by mutual agreement to pursue other opportunities outside the UK.

He will be succeeded by Roland Diggelmann, a former Roche Diagnostics executive, who has been on the Smith & Nephew board as a non-executive director since March 2018.

Diggelmann will take the helm on 1 November; Nawana will stay with the company until the end of December to “provide advice and assistance”.

It is understood that Nawana, who is based in Andover in Massachusetts, is leaving because his requests for higher pay, in line with the packages awarded by US medical device-makers, could not be met under UK corporate governance standards. The board reportedly discussed relocating the company to the US over the summer.

Shares in the FTSE 100 firm – which began as a pharmacy in Hull more than 160 years ago – fell more than 8% to £16.81 at lunchtime on Monday, wiping more than £1bn off its market value.

Diggelmann ran Roche Diagnostics, a subsidiary of the Swiss healthcare firm Roche with an annual turnover of CHF11.5bn (£9bn), for six years until 2018 and previously worked at Sulzer Orthopedics and Zimmer.

By Julia Kollewe | Guardian

Image Credti: Smith & Nephew

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About Peter Coffaro 711 Articles
A growth-driven and strategic executive, Peter Coffaro commands more than 20 years of progressive management success within the orthopedic industry. Recognized by MedReps.com as one of the top medical sales influencers in the industry; he has 10 years of combined sales management experience and has held positions as a Director, General Manager and Distributor. Peter has worked for some of the top orthopedic companies in the world - Zimmer, DePuy and Stryker. He is also the founder of OrthoFeed: a popular blog that covers orthopedic news and emerging medical technologies. Peter is a three-time Hall of Fame award winner at Johnson and Johnson and has an extensive background in organizational development, business development, sales management, digital marketing and professional education. Peter holds a B.S. degree in Biology from Northern Illinois University.

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