Merit Medical Systems appoints Martha G. Aronson as president and CEO

Merit Medical Systems Inc. (NASDAQ:MMSI), a healthcare company with annual revenues of $1.43 billion and a market capitalization of $4.88 billion, announced that its board of directors accepted the resignation of Fred P. Lampropoulos as president and chief executive officer and approved the appointment of Martha G. Aronson to those positions, each effective October 3, 2025. According to InvestingPro analysis, the company currently trades near its 52-week low, suggesting a potential opportunity for investors interested in healthcare sector leadership transitions. The board also expanded its membership from ten to eleven directors and appointed Ms. Aronson as a director. Mr. Lampropoulos will continue to serve as a director and chairman of the board.

According to a statement released in the company’s SEC filing, there is no arrangement or understanding between Ms. Aronson and any other person regarding her appointment. She is not a party to any transaction requiring disclosure under Item 404(a) of Regulation S-K.

As previously disclosed, Ms. Aronson entered into an offer letter with Merit Medical on July 7, 2025. Under the agreement, she will receive a base salary of $1,000,000 per year, pro-rated for any partial year. She will receive a signing bonus of $250,000 and will participate in the company’s annual bonus program starting in the 2026 fiscal year, with a target bonus of 100% of her base salary and a maximum of 200%, determined according to the company’s 2019 Executive Bonus Plan. Ms. Aronson is also eligible for annual equity awards under the company’s 2018 Long Term Equity Incentive Plan, with an expected initial award valued at $5,500,000. Upon starting employment, she will receive an equity grant valued at $4,125,000 in the form of performance share units and restricted stock units. Additional benefits include a transition allowance of $12,000 per month through September 30, 2026, reimbursement for relocation expenses, and certain legal fees. The terms were formalized in employment and award agreements dated October 3, 2025.

In connection with Mr. Lampropoulos’s resignation as president and CEO, the company entered into a CEO Transition Agreement with him, effective October 3, 2025. He will serve as executive chairman of the board through January 3, 2026, maintaining his current salary, bonus, and benefits through that period. Afterward, he will continue as a director and chairman of the board and receive compensation and benefits consistent with other non-employee directors. The company and Mr. Lampropoulos are negotiating a consulting agreement for additional compensation following his transition.

This information is based on a statement from the company’s SEC filing.

In other recent news, Merit Medical Systems reported impressive second-quarter 2025 earnings, surpassing market expectations. The company achieved an earnings per share of $1.01, significantly higher than the projected $0.85, resulting in an 18.82% surprise. Revenue for the quarter reached $382.5 million, exceeding the anticipated $374.18 million. Additionally, Merit Medical’s organic revenue growth improved to 6.7% year-over-year, as noted by Needham, which maintained a Buy rating with a price target of $108.00. Piper Sandler also reaffirmed an Overweight rating on the company, citing its progress on the three-year Continued Growth Initiatives plan.

Furthermore, Merit Medical’s SCOUT Radar Localization system has now been used in 750,000 patients worldwide for breast cancer treatment, marking a significant milestone. In another development, the company’s Embosphere Microspheres received European Union approval for use in treating knee osteoarthritis through genicular artery embolization. These recent developments underscore Merit Medical’s ongoing advancements and achievements in the medical field.

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