$300B California Teachers Pension Fund Joins Politan Capital In Legal Action Against Masimo CEO's Employment Agreement
- The California State Teachers' Retirement System (CalSTRS) has joined Politan Capital Management to stop Masimo Corp's (NASDAQ: MASI) CEO from receiving more than $500 million if there are changes to the corporate governance, including its board of directors.
- CalSTRS and Politan Capital will challenge Masimo chief executive officer and chairman Joe Kiani's employment agreement in Delaware Chancery Court.
- The agreement pays Kiani roughly $600 million in compensation if more than one-third of the company's board is voted out or the board appoints a lead independent director.
- Politan owns a 9% stake in Masimo. Politan Capital signaled interest in joining the board last year. Reuters reported that two Masimo directors would stand for reelection at this year's annual meeting.
- Aeisha Mastagni, CalSTRS Portfolio Manager of Sustainable Investment and Stewardship Strategies, stated, "CalSTRS has been a Masimo stockholder for more than a decade and believes an essential part of managing our portfolio is taking a stand against problematic corporate governance practices that impede stockholder rights and raise investment risks."
- Politan's managing partner and chief investment officer Quentin Koffey called CalSTRS one of America's most influential champions for stockholders and said the fact the fund is joining the legal fight "underscores its importance."
- Price Action: MASI shares closed at $175.93, down 2.22% during after-hours trading on Thursday.
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