Dive Brief:
- Stryker CEO Kevin Lobo will step down after more than 15 years at the company, according to a Tuesday announcement.
- Lobo will become executive chair of Stryker’s board of directors starting on Jan. 1. Spencer Stiles, Stryker’s current chief operating officer, will become its next CEO, also joining the board.
- Stiles, 50, has nearly 30 years of experience at Stryker “spanning leadership roles across virtually every business,” RBC Capital Markets analyst Kendall Au wrote in a research note. Stiles also has a close working relationship with Lobo.
Dive Insight:
Lobo first joined Stryker in 2011 as group president. He became CEO a year later. During his tenure, Stryker’s sales tripled from $8.7 billion in 2012 to more than $26 billion in 2026. The company also made more than 60 acquisitions during this time, including of Mako Surgical, which became the backbone of Stryker’s surgical robotics business, Wright Medical, which contributed to its trauma and extremities business, clinical workflow firm Vocera Communications and mechanical thrombectomy device maker Inari Medical.
Lobo said he and the board worked together on a succession plan. Investors anticipated a management transition was underway after Stiles was promoted to president and COO last year, Stifel analyst Rick Wise wrote in a research note.
“To us, this is simply the next step in what is a thoughtful, gradual transition for Stryker,” he added.
Stiles joined Stryker in 1999 and has held leadership roles in its orthopedics, medical-surgical and neurotechnology segments. Before he was named COO, Stiles was group president of orthopedics, with additional responsibility for mergers and acquisitions. He helped lead the acquisition of Wright Medical and Stryker’s sale of its spinal implants business.
Lobo touted Stiles’ leadership skills, including the ability to set a clear direction, inspire people and translate strategy into execution.
Stiles will start as CEO on Jan. 1, with a base salary of $1.32 million. Stryker’s board is increasing from 10 to 11 people, and both Lobo and Stiles will have seats.
Stiles has spent the past year meeting with investors and preparing for the CEO role, J.P. Morgan analyst Robbie Marcus wrote in a research note. “He’ll have large shoes to fill, but we think he’s up to the task.”
