CUTR - Cutera terminates CEO executive chairman amid succession battle; withdraws outlook

2023-04-12 06:42:08 ET

Cutera ( NASDAQ: CUTR ) appointed board member Sheila Hopkins as interim CEO, after terminating CEO David Mowry, effective immediately.

The aesthetics medical device maker also withdrew its 2023 outlook and noted that search for a permanent CEO is underway.

In addition, Cutera appointed board member Janet Widmann as independent Chair of the board, effective immediately, following the immediate termination of Daniel Plants as executive chairman.

Cutera said the board's decision to terminate Plants and Mowry was made after unanimous recommendations from a special committee consisting of all members of the board's Governance and Corporate Responsibility Committee and the majority of the directors.

Cutera noted that in November 2022, the board's independent directors began exploring a CEO transition.  Plants recommended the termination of Mowry and indicated that he wanted to succeed him as CEO. This followed a previous attempt by Plants to gain the CEO role in February 2021 by recommending removal of Mowry.

The company added that the board, however, decided to seek an external CEO candidate.

Cutera said that after this decision, in a campaign to seize control of the company, Mowry and Plants issued a press release in which they disclosed – and mischaracterized – confidential internal deliberations of the board in violation of their employment contracts and their duties as directors and officers under Delaware law.

Cutera added that board will make a formal recommendation regarding the special meeting demands of Plants and Mowry in due course.

"The Board’s decision to terminate Mr. Mowry and Mr. Plants is consistent with our commitment to taking actions that we believe are in the best interests of the Company and Cutera stockholders," said Widmann, new chair of the board.

The company added that in connection with the actions taken, it is withdrawing its full-year 2023 outlook.

Hopkins has served as a board member since May 2021 and currently serves as a director for Prestige Consumer Healthcare. Hopkins previously worked as president, Global Vision Care and executive vice president of Bausch + Lomb.

Hopkins will be focused on leading the execution of the company's AviClear strategy and pursuing growth opportunities, according to the company.

Widmann has been a director at the company since December 2021. She is also a board member at Avista Corporation and Acorn Health, and has been an advisor to Vida Health, Cutera added.

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