Medtronic said Tuesday that it has appointed two new members to its board of directors and formed two special committees following “constructive engagement” with the activist investor firm Elliott Investment Management, which is now one of Medtronic’s largest shareholders.
Medtronic CEO Geoff Martha told investors during an earnings call that the two new board seats and the formation of the committees were done in “partnership” with Elliott, and will help the company capitalize on the “enormous opportunities in front of us and unlock the full extent of Medtronic’s potential.”
The company’s board of directors appointed John Groetelaars and Bill Jellison as independent directors, effective immediately. Martha said that Groetelaars and Jellison bring “deep medtech experience that’ll be a strong voice on the board,” adding that Medtronic has had medtech experience on the board in the past but not as much recently.
“So, bringing in [Groetelaars] and [Jellison] will help a lot,” the CEO said.
Medtronic has also formed two committees as part of the initiative. The first, called the growth committee, will focus on M&A, research and development, and potential divestitures. The second committee, called the operating committee, will focus on operational performance, margin expansion and driving sustained earnings acceleration.
Groetelaars and Jellison will serve on one or both of the committees, according to Medtronic’s announcement. Martha will serve as chair of the committees.
Marc Steinberg, a partner with Elliott, said in a statement that the firm’s decision to become one of Medtronic’s largest investors comes as the company is “entering a new chapter” of value creation defined by accelerating growth, operational improvement and a clearer strategic focus.
“We believe Medtronic's recent innovations in some of the medical technology sector's most attractive markets have positioned the company for an inflection in organic growth,” Steinberg said. “Combined with its renewed focus on portfolio simplification and improved operational execution, Medtronic is set to deliver a sustainable acceleration in earnings growth as well.”
Martha, in the statement, said that the new board members and committees are examples of Medtronic becoming simplified and more profitable, citing the company’s plan to spin off the diabetes segment.
J.P. Morgan analysts, in an investor note ahead of Medtronic’s earnings call, wrote that the appointment of the new board member is a positive and a “sign of greater commitment from management that shows an understanding that changes need to be made to increase shareholder value.”
Groetelaars and Jellison will be nominated to stand for election to the board at Medtronic's 2025 annual general meeting of shareholders, according to the announcement. Medtronic plans to hold an investor day in mid-2026, where the company will discuss the work of the newly formed committees.
Medtronic brought in $8.58 billion of revenue in the first quarter of its fiscal year 2026, led by growth in its cardiovascular, neuroscience and diabetes units. The company raised its non-GAAP earnings per share guidance to a range of $5.60 to $5.66, compared with a prior range of $5.50 to $5.60.
A revised tariff forecast contributed to the raised EPS guidance. Medtronic, much like other medical device companies, does not expect to take as steep of a hit due to tariffs in the coming quarters. The company now expects a charge of approximately $185 million in its fiscal year 2026, down from a range of $200 million to $350 million.
