USA — Illumina, a leading biotech company renowned for its DNA sequencing and array-based technology, has recently made headlines with the resignation of its CEO, Francis deSouza.
This announcement comes only a few weeks after activist investor Carl Icahn’s failed attempt to remove deSouza from his position within the company.
DeSouza has been an integral part of Illumina since 2013, assuming the role of CEO in 2016. Following his resignation, Illumina’s board of directors is now actively seeking a new CEO.
The search process includes considering both internal candidates and external prospects, as stated in a company release. In the meantime, Charles Dadswell, Illumina’s senior vice president and general counsel, will serve as the interim CEO.
Although deSouza’s resignation is effective immediately, he will continue to provide guidance and support to Illumina in an advisory capacity until July 31.
In a press release, deSouza expressed his deep appreciation for his time at Illumina, emphasizing the immense potential of the company’s work in advancing human health through unlocking the power of the genome.
He stated, “It has been the privilege of a lifetime to serve Illumina. We have made great progress together, but I believe we are still at the very beginning of the impact Illumina will have on human health by unlocking the power of the genome.”
The backdrop for deSouza’s resignation lies in the intense proxy fight between Illumina and Carl Icahn, who owns a 1.4% stake in the company.
Icahn has repeatedly criticized Illumina’s executive management and board, specifically concerning the company’s controversial US$7.1 billion acquisition of cancer test maker Grail in 2021.
In an open letter addressed to Illumina shareholders in April, Icahn accused deSouza of attempting to spin “decidedly mediocre” quarterly results during a press tour, describing the efforts as “desperate, hilarious, and unsuccessful.”
In late May, Icahn rallied shareholders to vote against deSouza and Chairman John Thompson, both members of the nine-member board.
While Thompson was successfully removed, deSouza managed to retain his position until his recent resignation.
Icahn took to Twitter to express his satisfaction with the recent changes at Illumina, stating, “While obviously I believe the change of CEO should have come meaningfully sooner, it is still a very positive occurrence.”
The proxy battle, which commenced in March, concluded with a May vote that saw Icahn garner sufficient support from shareholders to oust John Thompson as board chair and appoint his nominee, Andrew Teno.
Icahn has publicly advocated for the return of former Illumina CEO Jay Flatley.
Following his departure, deSouza penned a letter to Illumina employees on LinkedIn, affirming his unwavering belief in the potential of GRAIL’s life-saving technology and the advantages of merging it with Illumina.
Notably, deSouza’s departure was not an inevitable outcome. He secured more than twice the number of shareholder votes compared to his challenger in the proxy vote, which could have provided him with sufficient legitimacy to retain his position.
It is worth noting that other CEOs have remained in their roles despite challenges. For instance, Vicki Hollub continued as Occidental Petroleum’s CEO even after the company reached a board seat agreement with Icahn in 2020, followed by Icahn’s subsequent exit two years later.
Similarly, Unilever Plc CEO Alan Jope announced his plans to step down three months after Nelson Peltz of hedge fund Trian Fund Management joined the consumer giant’s board last year.
In another development, Illumina recently filed an appeal against an order from the U.S. Federal Trade Commission, which mandated the divestment of Grail due to competition concerns.
As Illumina navigates this period of transition, the search for a new CEO will be crucial in shaping the company’s future trajectory and its contributions to the field of genomics.
With rapid advancements in technology and the increasing significance of genetic research, leadership change will play a pivotal role in determining Illumina’s path in the years to come.
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