Kevin Lobo has been named president and CEO of Stryker Corporation.
The surprise announcement was made October 1.
Lobo joined Stryker in April 2011 when he was appointed as a group president to lead the company’s newly formed Neurotechnology and Spine Group. Before he could measure drapes to his new office, he was named Group President, Orthopaedics the following month. He replaced Mike Mogul, who left to head up DJO Global, Inc. Orthopaedics includes the company’s Reconstructive, Osteosynthesis, Joint Preservation, Orthobiologics and Performance Solutions businesses.
Curt Hartman, Stryker’s CFO and Interim CEO since the February 2012 departure of the former Chairman, President and CEO, Stephen MacMillan, has decided to “pursue opportunities outside of Stryker, ” according to a company statement. Hartman has agreed to stay on as an advisor to Lobo to assure a smooth transition as the company conducts a search for a permanent CFO.
“After a very thorough search process involving external and internal candidates, we are pleased to name Kevin Lobo as Stryker’s President and Chief Executive Officer, ” said William Parfet, the company’s non-executive chairman of the board. “He is a talented executive with a broad range of global experience and he knows our company and industry extremely well. Since joining Stryker in 2011 he has proven to be a highly effective leader for our Orthopaedics Group, and he has won the confidence of employees, customers and the Board. We are excited about Stryker’s future under Kevin and believe our shareholders and all stakeholders will benefit from his leadership.”
Lobo said that Stryker is a company with a proud history and a bright future. “Since joining the company last year, I have witnessed firsthand the commitment of our talented people as they work to enhance the lives of patients. It’s a privilege to have the opportunity to lead this great company, and I look forward to working with the Board and our people throughout the organization to maximize our strengths, build on our leadership position and create value for shareholders.”
With his short tenure at the company, it’s hard to predict what changes, if any, he will bring to the company. His predecessor was known for pursuing a “big footprint” strategy and building the company’s value through lots of “singles and doubles, ” instead of home runs. The company did swing for the fences last year when it acquired Boston Scientific’s neurovascular business and Orthovita. The company also sold its OP-1 business.
Kevin Lobo Resume
Lobo has a broad and diverse 25-year business career that includes executive positions in general management and finance. After holding finance positions with KPMG and Unilever Canada, he joined Kraft Canada in 1992. He subsequently held executive positions at Rhone-Poulenc, including roles based in Europe as Worldwide Corporate Controller of the chemical spin-out, Rhodia, and General Manager of Specialty Phosphates EMEA. In 2003 he joined Johnson & Johnson at McNeil Consumer Healthcare as CFO. In 2004 he took on additional responsibilities as CFO of Ortho Women’s Health and Urology and General Manager of McNeil Canada. In 2005 he was named President of Johnson & Johnson’s Medical Products Canada and in 2006 he became President of Ethicon Endo-Surgery, Inc., a $4 billion business.
Wells Fargo analyst, Larry Biegelsen said the news did not come as a complete surprise to his analyst team as they had heard recently that the Board was impressed with him and was considering him for the vacant CEO position. “Specifically, we heard that Mr. Lobo possesses good leadership skills and is well-liked and respected within Stryker. In addition, we heard the Board was interested in his international experience (Canada and Europe) because Stryker has historically not performed as well outside the U.S. as it has in the U.S.”
Now that he can’t be promoted any higher, this time Lobo should be able to measure and keep his drapes.
Editor’s Note: After the writing of this article, Raj Denhoy of Jefferies & Company, reported that Dean Bergy, a former long-serving Stryker CFO, has agreed to return in that role on an interim basis.
