POWAY, California – ResMed Announced ,Thursday February 21st, 2013, that Michael “Mick” Farrell will replace his father, Peter Farrell, as CEO effective March 1st 2013. According to the press release Michael Farrell will be appointed to the company’s board and Peter Farrell will remain executive chairman through the end of the year, then transition to non-executive chairman. Previously, Michael Farrell was the president of ResMed’s America’s Division, a position he held since 2011. Gary Pace, ResMed’s Lead Director and Chairman of the Board’s Succession Committee Stated, “It was easily determined that members of the very talented and experienced team that have driven much of the company’s great success over the past decade would be the best suited to lead the company to its next stage of growth and development.” Rob Douglas, COO, will become the President of the America’s Division.
Less than a month before the Announcement, Peter Farrell sold 400,000 shares at an average price of $46.98 per share, according to Nasdaq.com. The sale was completed the same day an average 45% reimbursement cut, part of Round 2 competitive bidding, was announced by CMS. ResMed’s stock price dropped more than 6% after the sale.