Some of you are nervous about Elliott Management, saying it might mean layoffs. A future with Geoff Martha definitely means continued layoffs and possibly much worse anyway, while him and the board continue to sacrifice others to benefit themselves. It is not by chance that Geoff has loaded up the top cadre of the company and board with buddies from GE.
The fact this board has not removed Geoff after so many years of poor performance -well over the NYSE trading company average of 3 bad years for a CEO- is all you need to see to know that nepotism and cronyism is rife at Medtronic. It is absurd.
Elliott Management is a significant shareholder and they have exercised their rights. These companies do not usually walk into a company they hold major stakes in, with the intention of shutting it down. They genuinely want it to return to being profitable and a market leader... but yes, that might also take some layoffs... and divestitures. Again, a future under GM is the far worse result.
And Elliott are there for another reason. Pay attention: they have just 'diluted' the existing board's powers by installing two of their own. That's a governance and accountability mechanism. That's their spot to scrutinize Geoff's performance. That's an eventual motion to remove him as CEO and potentially more if they deem that the board's actions are harmful to investors.
Geoff is on notice and he knows it. That's what you saw in his body language.
Elliott might do things we don't like, but make no mistake that this is the beginning of the end for Geoff. Enjoy it. We've waited forever for it.