Masimo CEO waives right to $600 mln payout in fight with activist investor

Masimo Corp MASI Chief Executive Joe Kiani has waived his rights for roughly $600 million in special payment if the U.S. medical device maker appoints a lead independent director, the company said on Thursday.

The company, which named board member Michael Cohen as a lead independent director, said Kiani has also agreed that a move by Masimo to appoint two new directors would not constitute a change in control.

The CEO's move follows a court challenge by activist investor Politan Capital Management on his job agreement, which also said Kiani would get the payout if over a third of the board was voted out in 24-month period or if he was no longer both chairman and CEO.

Politan acquired a nearly 9% stake in Masimo in August with plans to push the company to make changes.

The activist investor declined to comment

Masimo did not name the activist investor in its statement, but cited Cohen as saying that the board changes were based on shareholder feedback.

"The Board is confident that the changes we are announcing today will position it to continue to provide effective oversight," Cohen said.

Earlier this month, another investor, California State Teachers' Retirement System, had joined Politan to challenge Kiani's employment agreement in the Delaware Chancery Court.