Smith & Nephew’s new CEO better learn from his predecessor what not to do
By Chris Bailey of Financial Orbit | Sunday 31 July 2022
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
A little under three years ago, I first wrote about Smith & Nephew (SN.), which “designs and makes technology that takes the limits off living, and we help healthcare professionals to achieve the same goal”. All good stuff, but - as shown by the 70% fall in share price since October 2019 - life for this sort of business has got more tricky. And the then-CEO did not listen to my advice: that he needed “to focus on performance and not pay”. Unsurprisingly, he has left, chasing more money… So, what about the new(ish) CEO and prospects for Smith & Nephew shares, now at a five-year low?
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