FTSE 100 medical manufacturer Smith & Nephew has announced its CEO Namal Nawana is to step down from the role next week.
Mr Nawana, who joined the Hull-based company just 19 months ago, has led Smith & Nephew through a vital phase of its growth.
In August, Smith & Nephew raised its full-year revenue growth targets for 2019 for a second time in three months, following strong performance at the company.
However, amid reports of a pay dispute between Mr Nawana and Smith & Nephew, the FTSE giant’s CEO will leave his role on October 31.
He will be succeeded by Roland Diggelmann, who joined the business as a non-executive director last year.
Roberto Quarta, chairman of Smith & Nephew, said: "On behalf of the Board, I am delighted to welcome Roland Diggelmann as Smith & Nephew's incoming CEO.
“I am certain that Roland's leadership qualities, combined with his excellent track record of delivering results in an innovation-led business, his deep expertise in the medical devices industry, and his knowledge of Smith & Nephew, make him the right person to build on the Company's success into the future.
"During his time with Smith & Nephew, Namal has substantially transformed the business with a new strategy, purpose and culture, and renewed commitment to innovation, returning it to an improved growth trajectory.
“I would like to thank Namal for his leadership and many contributions to the Company, our employees, customers and stakeholders."
Sales at Smith & Nephew hit $2.49bn in the first half of 2019 – up from $2.44bn in the same period last year
Operating profits rose to $419m, boosted by a string of impressive acquisitions from Smith & Nephew in 2019.
Earlier this year, Smith & Nephew increased its full-year revenue growth target to 3.5 per cent.
It has however now said that growth could pass four per cent, as 2019 continues to reap rewards for the FTSE 100 manufacturer.
Mr Nawana’s successor, Mr Diggelmann, will take on his new responsibilities on November 1.
Smith & Nephew’s current CEO will be employed and provide advice and assistance to the company’s new boss in his new role until the end of the year.
Namal Nawana said: "There is clear momentum behind our strategy laid out last year, underlined by the company's performance generated by our team during 2019.
“I am proud to be leaving Smith & Nephew in a strong position for the next phase of its development."
New CEO Mr Diggelmann will receive a salary of £1.38m, with a Cash Incentive Plan opportunity of 150 per cent of base salary.
The new boss first joined Smith & Nephew's board as a non-executive director in March 2018.
His career has been spent in medical technology, most recently as CEO of Roche Diagnostics, a global business which at the time of his departure in 2018 had turnover of $11.5bn in over 100 markets and 34,000 employees.
Prior to his 11-year career at Roche Diagnostics, Mr Diggelmann spent 12 years in the orthopaedics sector.
Mr Diggelmann said: "I am honoured to have been asked to lead Smith & Nephew at an exciting time for the business.
“As non-executive director I have seen first-hand the strength of the group's people and its portfolio of leading technologies.
“I look forward to playing my part in shaping the future of the company and driving the next stage of growth."
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