Boston Sci CEO Elliott to retire this year
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"While the company continues to evolve, we expect that much of the turnaround work will be complete by the end of the year,” said Elliott. “Therefore, I believe the time is right for someone new to take the reins. It has been, and continues to be, an honor to lead Boston Scientific, but after nearly 40 years in healthcare, the last 33 of those in general management and as a company president, it's time for me to permanently pass the baton to a long-term CEO. Finding the right time to leave is difficult. Leaving too soon or staying too long can both be problematic. However, this decision is mine and mine alone. I am grateful to have received tremendous board and employee support as CEO, often during challenging times."
Elliott joined Boston Scientific in July 2009 from orthopedics technology developer, Zimmer Holdings, taking the reins from Jim Tobin, after a 10-year tenure.
Under Elliott's leadership, the company made considerable changes in its businesses:
- In less than two years, the company materially changed the roles or the actual individuals in 40 of the top 50 corporate positions. In addition, the company started a Leadership Academy, training 80 emerging executives.
- Boston Scientific developed and launched its POWER business strategy, focusing on 12 priority growth initiatives. The company also divested its neurovascular business and made six strategic acquisitions within the past year, sharpening its acquisition process along the way.
- Boston Scientific is accelerating its development-to-commercialization process that is expected to yield $200 million in cost-savings opportunities. In addition, the company plans to direct 30 percent of its research and development budget to growth projects by 2012, and currently has more than 150 internal research and development initiatives under way, nearly double from 2009.
- The company is making considerable investments in emerging markets, aiming to reach revenues of approximately $400 million in China and $200 million in India by 2015.
- Boston Scientific reduced its debt to $4.7 billion and is progressing toward its target of approximately $4 billion, improving liquidity and generating adjusted free cash flow of more than $1.2 billion annually.
"It has been an honor to serve as CEO. As a director, I will focus my efforts on our Leadership Academy, emerging markets and our 'Close the Gap' initiative that seeks to improve upon disparities in the delivery of healthcare to women, African Americans and Latino Americans," Elliott said.
The CEO search committee has commenced its efforts to seek a seasoned, long-term CEO to lead the Natick, Mass.-based company in the next phase of its growth. Boston Scientific said it expects to identify and announce this individual by the end of the year.