Boston Scientific Shakes Up Executive Leadership As Co-Founder Retires
Boston Scientific announced that it is shaking up its executive leadership this week, as co-founder Pete Nicholas steps down as chairman. Current CEO Michael Mahoney will assume the chairman role in May. Previous CEO of Tufts Medical Center, Ellen Zane, will be joining the board of directors in April.
Together with John Abele, Pete Nicholas founded Boston Scientific in 1979 as a holding company to purchase Medi-Tech, a device developer focused on less invasive medicine. Abele stepped down from Boston Scientific’s board of directors in 2005 and has since launched a busy second career in philanthropy and venture investing, according to Forbes.
Nicholas remarked in a press release that the transition is “exciting and forward looking” for the entire company, and he expressed enthusiasm for the future of Mahoney’s leadership.
“The company is in an excellent position under Mike’s leadership, and with the support of a strong and dedicated board and outstanding worldwide team of dedicated employees, the company remains poised to continue its current trajectory of successful growth,” said Nicholas.
Mahoney was brought on board as Boston Scientific’s president in 2011 and was named CEO in November 2012; he’d previously worked in global leadership roles at Johnson & Johnson (J&J). At the time of his hire, analysts told Bloomberg that Mahoney’s move may precipitate J&J’s buyout of Boston Scientific, but J&J recently announced its intent to shift focus away from the device industry.
Mahoney’s leadership has been tasked with revitalizing Boston Scientific’s sales in cardiac devices, reported Bloomberg. To better secure the business, Mahoney restructured the company and inked a series of acquisitions to expand the company’s cardiac portfolio. In a recent earnings call, Mahoney announced that Boston Scientific’s revenue increased by 8 percent (excluding currency swings) in 2015.
According to Mahoney, the changes to the executive board reflect a “major milestone” for Boston Scientific. He credited the company’s continued success to Nicholas’ years of diligent and passionate service.
“Under Pete’s leadership, Boston Scientific has become a leading global health care corporation serving 22 million patients each year, and we are deeply indebted for his decades of service and love of the company,” said Mahoney in a statement.
In other changes, board of directors members Ernest Mario and N.J. Nicholas, Jr. (brother of Pete) also announced their retirements, effective in May. Zane, who will fill one of those empty seats, has served as CEO of Tufts Medical Center, the Floating Hospital for Children, as network president of Partners HealthCare System, and as chair of the Massachusetts Hospital Association.
Edward Ludwig, former CEO and chairman of Becton Dickinson, will serve as lead independent director for Boston Scientific, starting in May.