Critique of Activist’s Demands on Masimo Board

Politan Capital has made it clear that they are not satisfied with Masimo’s current board composition. In response to Masimo’s offer to add one of Politan’s nominees to the board, the activist group demanded not only the addition of William Jellison but also the inclusion of Darlene Solomon. This move is aimed at ensuring that there is a majority of independent directors on the board, a demand that Politan believes is crucial for the company’s governance.

One of the criticisms leveled against Politan’s demands is the perceived lack of productive communication. Quentin Koffey, a representative of Politan, suggested that Masimo’s proposals were more about gamesmanship than a genuine effort to address governance failures within the company. This raises questions about the sincerity of Politan’s intentions and their willingness to work constructively with Masimo.

Another contentious issue highlighted in the article is Politan’s threat of litigation against Masimo if they do not provide information about a joint venture. This aggressive approach may be seen as a tactic to pressure Masimo into compliance rather than a genuine attempt to resolve disagreements through dialogue and negotiation.

Politan’s previous successful proxy fight at Masimo raises concerns about their motives and tactics. The activist group’s repeated attempts to influence the composition of Masimo’s board through aggressive tactics may indicate a lack of trust in the company’s leadership and governance practices.

The underlying concern of Politan and other shareholders about governance failures at Masimo is a valid one. The activist’s claim that poor governance enabled the company’s questionable consumer technology acquisition is a significant issue that needs to be addressed. However, the repetitive nature of the activist’s demands and tactics raises questions about the effectiveness of their approach.

While Politan Capital’s demands for board representation at Masimo may stem from genuine concerns about governance, their aggressive and confrontational tactics raise doubts about their intentions. The company and the activist group must find a way to engage in constructive dialogue and negotiation to address governance issues effectively, rather than resorting to threats and ultimatums. Effective corporate governance requires collaboration and transparency, qualities that both Masimo and Politan need to prioritize for the benefit of the company and its shareholders.


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