Boston Scientific Corporation of Natick, Mass. announced it will have a new president on October 17. He is 46-year-old Michael Mahoney. The young executive will be eased into the job reports CBS News and take over the CEO title in November 2012 under the tutelage of William H. “Hank” Kucheman. Current CEO Ray Elliott will step down as of October 17.
The choice of Johnson & Johnson executive Michael Mahoney to become its next leader drew praise from analysts covering the medical device maker.
Mahoney began his career in sales and marketing selling nuclear medicine cardiology systems to small hospitals in the Carolinas, according to an interview in Orthopedics This Week in 2008, reports Mass Device. While at J & J he worked alongside David Floyd President of De Puy Orthopaedics and Mass Device reports, “ Mahoney was supposed to turn JNJ's ortho business into the biggest name in the space.”
“He told Orthopedics This Week that in order to accomplish his goal, he would need to "create a culture where employees are empowered; they’re customer focused; they’re innovative and they’re competitive. They’re also creative so you can unleash what we call the “winning spirit.” It’s a much more competitive winning culture that’s less risk averse." ”
But in August 2010, the DePuy ASR XL acetabular hip replacement was recalled because of the many revision surgeries patients were experiencing. Numerous product liability lawsuits followed against DePuy (J&J) as Mass Device reports alleging the company understood the flawed design of the implants but did not warn physicians and patients. J&J had to pay nearly 1 billion in legal costs and settlements as a result.
The ASR was cleared under the 510(k) process in 2005.
While the controversy eventually cost Floyd his job, Mahoney was promoted within J & J.
The Wall Street Journal on September 17 reported that the unusual employment terms came at the insistence of J & J enforcing a strict non-compete clause. Generally presidents don't wait more than a year to take over their new job, something called "a tad unusual" by a labor attorney quoted. Mahoney cannot work in any area that competes with J &J's interests including stents and catheters while under non-compete restrictions. #