Medtronic Adds Directors, Forms Strategic Committees After Elliott Stake

Medtronic Adds Directors, Forms Strategic Committees After Elliott Stake

Fridley, Minn. — August 19, 2025 — Medtronic plc, the world’s largest medical device manufacturer, is reshaping its board and governance structure following activist investor Elliott Investment Management’s emergence as one of its largest shareholders. The company announced the appointment of two independent directors and the creation of two new board committees focused on growth and operational efficiency, part of a broader push to boost shareholder value and accelerate strategic execution.

New Leadership Appointments

John Groetelaars

Bill Jellison

Joining the board effective immediately are John Groetelaars, former CEO of Hillrom and interim CEO of Dentsply Sirona, and Bill Jellison, former Chief Financial Officer of Stryker Corporation. Both executives bring decades of med-tech leadership and financial expertise.

Geoff Martha

Medtronic Chairman and CEO Geoff Martha will chair the new committees, with Groetelaars and Jellison serving on one or both.

Committees Target Growth and Efficiency
The new Growth Committee will oversee portfolio management, capital allocation, and research and development investments. Its responsibilities include evaluating potential “tuck-in” acquisitions and divestitures, as well as guiding the planned separation of Medtronic’s diabetes business.

The Operating Committee will focus on strengthening Medtronic’s operational performance, emphasizing supply chain efficiency, manufacturing improvements, expense management, and margin expansion.

Martha said the new structure reflects the company’s focus on both innovation and disciplined execution. “These committees will sharpen our ability to grow responsibly, enhance efficiency, and create lasting shareholder value,” he noted.

Elliott’s Activist Role
The changes come after months of “constructive engagement” with Elliott Investment Management. The firm, led by partner Marc Steinberg, has taken a large stake in Medtronic, citing confidence that the company is entering “a new chapter of exceptional value creation.” Elliott’s involvement is widely viewed as a catalyst for the governance shift, which aims to address investor concerns over Medtronic’s sluggish sales growth and share price performance relative to peers.

Financial Outlook and Market Reaction
Alongside these governance changes, Medtronic raised its full-year fiscal 2026 adjusted earnings per share (EPS) guidance to $5.60–$5.66, up from $5.50–$5.60, while reducing its expected hit from U.S. tariffs to about $185 million from earlier projections as high as $350 million. Despite these stronger earnings signals, Medtronic shares fell about 3%–4% in early trading, as some investors had expected more aggressive growth targets.

Analysts, however, called the governance changes a positive step, highlighting that the addition of seasoned directors and Elliott’s influence could help unlock growth opportunities and sharpen Medtronic’s operational execution.

Looking Ahead
Medtronic has scheduled an Investor Day in mid-2026, where it will update shareholders on the work of the Growth and Operating Committees and outline next steps in its strategic roadmap.

For now, the combination of activist pressure, new leadership expertise, and a sharper governance framework marks a pivotal moment for Medtronic as it seeks to revitalize performance and reaffirm its leadership in the global med-tech industry.

MinneapoliMedia