WASHINGTON - Medtronic said Monday that Chairman and CEO William A. Hawkins will step down in April after three years leading the world's largest medical device manufacturer.
The announcement took Wall Street by surprise, given Hawkins' short time on the job and relatively young age. But given the company's sluggish performance in recent years, analysts mostly affirmed the board of director's decision to seek new leadership.
"He came into a challenging environment where the key market for the company's bread and butter products was already in decline," said Edward Jones analyst Aaron Vaughn. "It's not Bill Hawkins' fault that the stock is where it is, but he is the CEO of the company and the board had to do something."
Under Hawkins' leadership, shares of the Minneapolis-based company have declined nearly 30 percent.
Hawkins, 56, will retire at the end of the company's fiscal year on April 29, the company said in an announcement. The company is currently searching for a replacement and Hawkins will stay with the company until a successor is named.
Hawkins took the reins at Medtronic in August of 2007, following a high-profile recall of defective wires used in its defibrillators. He joined the company as a senior vice president in 2002.
Medtronic makes a wide range of medical implants including heart-pacing devices, drug pumps and artery-opening stents.
During Hawkins' tenure the company has faced weakening sales of its products, due to unemployment and loss of health insurance in the U.S. As a result, the company announced layoffs last year and was forced to slash its 2011 earnings expectations. Hawkins also oversaw the integration of spinal implant maker Kyphon, a $4 billion acquisition that has failed to live up to analyst sales expectations. Additionally, the company was cited by the Food and Drug Administration for manufacturing problems, hampering its ability to launch new products.
