William A. Hawkins
| William A. Hawkins | |
|---|---|
| Nationality | American |
| Education | Duke University (BS, 1976) University of Virginia Darden School of Business (MBA, 1982) |
| Occupation | Business executive, corporate director |
| Company | Bioventus, Biogen, MiMedx |
| Title | Chairperson, Bioventus; former chairman and chief executive officer, Medtronic |
William A. Hawkins III, known as Bill Hawkins, is an American medical technology executive who was chief executive officer of Medtronic from August 2007 to June 2011 and chairman of its board from August 2008 to June 2011.[1][2][3] He later led the blood transfusion diagnostics company Immucor as president and chief executive from October 2011 to June 2015, under its private equity owner TPG.[4][5]
Hawkins trained as an electrical and biomedical engineer at Duke University and began his career in 1977 selling and engineering products for Carolina Medical Electronics.[6][7] Over the next two decades he held general management posts at IVAC Corporation, Guidant, Johnson & Johnson's Ethicon Endo-Surgery unit and American Home Products, and from 1998 to early 2002 he ran Novoste Corporation, a developer of vascular brachytherapy systems for interventional cardiology.[8][9] He joined Medtronic in January 2002 to run its vascular business, became president and chief operating officer in May 2004 and succeeded Arthur D. Collins Jr. as chief executive in August 2007.[10][11]
His tenure as chief executive opened with the October 2007 suspension of the Sprint Fidelis family of defibrillation leads, which he later called the toughest decision of his career, and covered the 2008 to 2009 recession, a series of acquisitions in heart valves, cardiac ablation, peripheral vascular devices and renal denervation, and pressure on the company's defibrillator and spinal businesses.[12][13][14][15] Annual net sales rose from $12.3 billion in fiscal 2007 to $15.9 billion in fiscal 2011.[14] In December 2010 the company announced that he would retire, and Omar Ishrak succeeded him on June 13, 2011.[16][3]
As of October 2026, Hawkins is chairperson of the board of Bioventus, an independent director of Biogen and of MiMedx, and a senior advisor to the private equity firm EW Healthcare Partners. Shareholders of all three public companies re-elected him in June 2026.[17][18][19][20][21] He was elected to the National Academy of Engineering in 2016 and served on the Duke University Board of Trustees from 2011 to 2023.[22][17]
Early life and education
Hawkins's father served four years as mayor of Durham, North Carolina. In a 2016 interview Hawkins said and that he had admired his father's ability to connect with people "in all sort of walks of life". He said his father taught him "to be yourself, to be a good person and recognize that we all have something to contribute", and drew a parallel between his father's continued civic activity after losing re-election and his own decision to keep working after leaving Medtronic.[13]
He studied at Duke University, graduating in 1976 with a dual bachelor's degree in electrical engineering and biomedical engineering.[23][18] According to a company biography, he also carried out medical research in pathology while at Duke.[24]
After three years working as a salesman for a small medical device company, Hawkins decided he did not want to stay in sales and applied to business schools at Duke, the University of North Carolina and the University of Virginia. He later recounted that the University of Virginia's Darden School of Business rejected him, in part, he believed, because of his standardised test scores. He telephoned the director of admissions, told her that he thought he had been sent the wrong letter, and asked to come to Charlottesville to explain why; after that visit he was admitted. He described the episode as the origin of a maxim he repeated throughout his career: "when the door is closed, you've got to find a window, and you never, never give up."[13] He received his MBA from Darden in 1982.[6][23]
Career
Early career, 1977 to 1998
Hawkins began his medical technology career in 1977 at Carolina Medical Electronics, where he worked in sales and engineering.[6][7] His early career also included positions at Eli Lilly and Company.[7][25] He then spent several years at IVAC Corporation, a medical device company, serving as its president and chief executive officer from 1991 to 1995.[8]
From January 1995 to October 1995 he was vice president in charge of United States operations of Guidant and president of Devices for Vascular Intervention, a Guidant subsidiary. In October 1995 he moved to Johnson & Johnson as president of Ethicon Endo-Surgery, a medical device subsidiary, a post he held until April 1997. From April 1997 to May 1998 he was a corporate vice president of American Home Products and president of its Sherwood Davis & Geck division.[8]
Novoste, 1998 to 2002
Hawkins was elected a director of Novoste Corporation, a Norcross, Georgia, developer of vascular brachytherapy systems for interventional cardiology, in May 1998. He became its president in June 1998 and its chief executive officer in April 1999, taking over the chief executive role from the company's co-founder and chairman, Thomas D. Weldon.[8][9] The company's 2001 proxy statement reported his salary as $307,010 for 2000, up from $287,500 in 1999.[8] While at Novoste he also sat on the boards of PharmaNetics, Optimize and The Innovation Factory and of the Georgia Biomedical Partnership.[8]
On December 19, 2001, Novoste announced that Hawkins would resign effective January 16, 2002, to join Medtronic. He said he had been "brought in almost four years ago to transition this organization from a development stage company to a fully integrated global leader in cardiology", that the goal had been accomplished, and that it was "time for me to accept new challenges". Weldon returned as interim chief executive, and Hawkins remained on the Novoste board.[9] He left the board on October 16, 2002, when Alfred J. Novak was appointed president and chief executive and took his board seat.[26]
Medtronic, 2002 to 2011
Vascular and chief operating officer
Hawkins joined Medtronic in January 2002 as senior vice president and president of Medtronic Vascular.[10][9] In May 2004 he was named president and chief operating officer.[10] During this period he served on the board of Deluxe Corporation, on the board of trustees of the Darden School and on the board of visitors of Duke's engineering school.[10]
On February 28, 2007, Medtronic announced a succession plan under which Hawkins would become president and chief executive at the August 2007 annual meeting, Michael F. DeMane would become chief operating officer, and Collins would remain chairman until August 2008. The board's governance committee chairman, Jean-Pierre Rosso, said the plan had been developed over several years after Collins informed the board of his retirement timetable.[1] Hawkins joined the board in March 2007.[10] For fiscal 2007, his last full year as chief operating officer, the company reported total compensation for him of $4.41 million.[10]
Chief executive officer
Hawkins was elected president and chief executive officer on August 23, 2007. His base salary rose to $1.1 million and his target annual bonus rose from 95 percent to 120 percent of salary.[11]
Seven weeks later, on October 15, 2007, the company voluntarily suspended worldwide distribution of its Sprint Fidelis defibrillation leads because of the potential for lead fractures. About 268,000 of the leads had been implanted. The company and its physician advisers recommended against prophylactic removal of the implanted leads, judging that the risks of extraction exceeded the risk of fracture.[12] In the following quarter's results, which showed net earnings down two percent, Hawkins said: "This was the right decision as there is nothing more important to us than the safety and well being of patients." The same quarter, revenue from the Physio-Control external defibrillator unit fell 33 percent because the company had suspended United States shipments to address quality system problems.[27] In a 2016 interview Hawkins described the Sprint Fidelis decision as the toughest of his career.[13]
On April 29, 2008, DeMane left the company, and Hawkins took direct responsibility for the global business unit presidents, who began reporting to him. He announced changes designed to focus the company on "growth, globalization, operating leverage and innovation", including the appointment of Jean-Luc Butel as head of all operations outside the United States.[28] He became chairman of the board in August 2008, when Collins stepped down.[2][1]
In the first quarter of fiscal 2009, revenue grew 19 percent to $3.706 billion and operating income 25 percent, and Hawkins pointed to progress on "operating leverage".[29] As the financial crisis deepened, he attributed the company's second-quarter results to "a globally diversified product portfolio".[30] In April 2009 the board's compensation committee cut the base salaries of the company's executive officers, including Hawkins, by five percent; the cut was reversed from May 1, 2010.[31]
In fiscal 2010 the company organised its businesses into two operating groups, Cardiac and Vascular, and Restorative Therapies, which became its two reportable segments from fiscal 2011.[14] By fiscal 2011 Hawkins was citing new products such as the Solera spinal system, the Arctic Front cryoballoon for atrial fibrillation, the Endurant stent graft and the Revo MRI-compatible pacemaker, and emphasising growth of more than 20 percent in emerging technologies and emerging markets.[32] In his final earnings release, in May 2011, he said steady growth had been "offset by challenging dynamics in the U.S. implantable cardiac defibrillator (ICD) and Spinal markets".[15]
Retirement
On December 20, 2010, the company announced that Hawkins, then 56, intended to retire as chairman and chief executive at the end of the fiscal year on April 29, 2011, or when a successor was appointed, and that the board had begun an external search. Lead director Kendall J. Powell said Hawkins had "made a very significant impact". Hawkins said: "I am confident that we made the right investments in talent, quality and innovation to position the company for long-term growth and future success."[16] A Bloomberg News report that day noted that the company's shares had fallen 15 percent during 2010 before the announcement, and quoted analysts critical of his record (see Controversies).[6]
Under a separation agreement, Hawkins agreed to remain an employee in a non-executive capacity until April 27, 2012, to help with the transition. On leaving he was to receive a lump sum of 1.25 times his annual salary and target bonus plus the value of 24 months of health and dental benefits, which the company estimated at about $3.8 million, together with three years of office and secretarial support.[33] On May 11, 2011, the board named Omar Ishrak, previously head of GE Healthcare Systems, as chairman and chief executive with effect from June 13, 2011.[3]
Immucor, 2011 to 2015
In August 2011 Immucor, a Norcross, Georgia, maker of reagents and automated instruments used to test blood before transfusion, was acquired by funds sponsored by TPG for $27.00 per share, in a transaction valued at about $1.9 billion that included about $1.1 billion of acquisition debt.[4] The company's previous chief executive had retired in June 2011, and his replacement resigned in October 2011.[4] Hawkins became president, chief executive officer and a director of Immucor in October 2011, under an employment agreement effective October 17, 2011, which set his base salary at $800,000 a year and his target bonus at 100 percent of salary.[4][34] He also became a senior advisor to TPG Capital.[25]
In January 2013 Immucor agreed to buy the LIFECODES transplant diagnostics business from Hologic for $85 million in cash plus an earn-out of up to $10 million, extending the company from blood typing into tissue typing for organ and stem cell transplants. Hawkins said the deal would extend Immucor's mission "to organs and stem cells".[35] The acquisition closed on March 22, 2013.[36]
In June 2014 the Food and Drug Administration lifted a Notice of Intent to Revoke that it had issued to Immucor in June 2009, relating to reagent red blood cells and an anti-E blood grouping reagent made at the Norcross plant. Hawkins said: "We take our commitment to quality very seriously."[37]
On June 29, 2015, Immucor appointed Jeffrey R. Binder, formerly chief executive of Biomet, as president, chief executive officer and chairman. Hawkins became lead director. Todd Sisitsky of TPG said that during Hawkins's tenure Immucor had "expanded globally, entered transplant medicine, resolved the legacy FDA NOIR, introduced breakthrough molecular technologies, and built a rich pipeline of diagnostic assays and systems".[5] Hawkins remained on the Immucor board until 2021.[17]
Private equity and later work, 2015 to present
Hawkins joined EW Healthcare Partners, a healthcare growth equity firm, as a senior advisor in 2017, and as of October 2026 he holds that role.[23][18] Through EW he became chairman of the portfolio company Bioventus, and EW's purchase of preferred stock in MiMedx in 2020 gave it the right to nominate him to that company's board.[23][38]
In a 2016 interview he described leading a group of North Carolina investors who bought the kidney regeneration programme of Tengion, a bankrupt Winston-Salem regenerative medicine company, for $1.5 million. He said Tengion had absorbed about $400 million of capital and that its programme for chronic kidney disease had just completed a Phase I study. Raising the $25 million needed for a Phase II trial proved difficult, and the group spent $4 million to $5 million keeping the business going before one of the prospective lead investors offered to buy it. He said the sale closed on the day of the interview.[13]
Leadership and management style
Hawkins has framed several of his decisions around patient safety and product quality. He defended the 2007 Sprint Fidelis suspension on the grounds that "there is nothing more important to us than the safety and well being of patients", and in announcing his retirement he listed "talent, quality and innovation" as the areas in which he had invested.[27][16] At Immucor he described the company's core purpose as "making sure that patients who need a blood transfusion are matched with the right donor unit".[37]
On becoming sole operating head of Medtronic after DeMane's departure in 2008, he removed the chief operating officer layer and had the global business unit presidents report directly to him, while creating a single international organisation under Butel.[28] His public commentary on results repeatedly stressed the breadth of the company's portfolio and the pursuit of "operating leverage", meaning faster growth in operating income than in revenue.[29][30]
He has been candid about his own mistakes. In 2016 he called the 2007 purchase of Kyphon, agreed while he was president but before he became chief executive, "a disaster", explaining that the company had been most interested in a business Kyphon had itself acquired and had not been able to do enough due diligence on it. He said the board "reminded me about that every single solitary board meeting for four years".[13] He attributes his persistence to the Darden admissions episode and to his father's example.[13]
Major deals and strategic decisions
Kyphon
Medtronic agreed to buy Kyphon, a maker of balloon kyphoplasty systems for spinal compression fractures, on July 27, 2007, while Hawkins was president. The deal closed on November 2, 2007, after he had become chief executive, at $71.00 per share in cash; including Kyphon's debt, the total value was about $4.2 billion, financed mainly from cash on hand. Hawkins said at the closing that the two companies' products and geographic presence were "highly complementary".[39] By fiscal 2011 the company was reporting continued falls in demand for balloon kyphoplasty, driven in part by articles on vertebroplasty in the New England Journal of Medicine.[14] Hawkins later called the deal the one he most wished he could undo.[13]
Cardiac and vascular acquisitions
Under Hawkins, Medtronic made a series of acquisitions in structural heart and arrhythmia treatment, as reported in its fiscal 2011 annual report:[14]
- CryoCath Technologies (November 2008), a developer of cryotherapy catheters including the Arctic Front cryoballoon for atrial fibrillation, for about $352 million net of cash.
- Ablation Frontiers (February 2009), a radio frequency ablation company, for total consideration of about $235 million.
- Ventor Technologies (February 2009), a development-stage transcatheter heart valve company, for about $308 million, almost all of which was expensed as in-process research and development.
- CoreValve (April 2009), a developer of catheter-delivered aortic valve replacement, for an up-front payment of $700 million plus milestone payments.
- Invatec (April 2010), an Italian maker of angioplasty balloons and stents, for an up-front $350 million plus up to $150 million in milestones, valued at about $468 million in total.
- ATS Medical (August 2010), a heart valve and surgical cryoablation company, at $4.00 per share, for total consideration of about $394 million.
- Ardian (January 2011), the developer of the Symplicity renal denervation catheter for uncontrolled hypertension, for total consideration of $1.02 billion, including $212 million of estimated contingent payments. Medtronic already owned 11.3 percent of the company.
Other acquisitions
Smaller acquisitions in the same period included Restore Medical, a sleep apnoea device maker, for about $29 million in July 2008; Axon Surgical, a spinal neuromonitoring business, for $62 million in June 2010; Osteotech, a biologics company, at $6.50 per share for about $123 million in November 2010; and Jolife, the Swedish maker of the LUCAS chest compression system, for about $53 million in February 2011.[14] During Hawkins's time as chief executive, Medtronic put $20 million into a chronic kidney disease programme at Tengion.[13]
Restructuring and cost programmes
The company recorded restructuring charges of $41 million in fiscal 2008, $120 million in fiscal 2009, $50 million in fiscal 2010 and $261 million in fiscal 2011, and by fiscal 2011 was pursuing a five-year plan to cut its cost of products sold by $1 billion by fiscal 2012.[14] In his final earnings release Hawkins referred to the company's effort to "restructure our business for growth".[15]
Financial and market performance
The table below shows the company's results for Hawkins's last year as chief operating officer and his four years as chief executive. Its fiscal year ends in late April.[14]
| Fiscal year | Net sales | Net earnings | Diluted EPS | Full-time equivalent employees at year end |
|---|---|---|---|---|
| 2007 | $12.299 billion | $2.703 billion | $2.32 | 37,800 |
| 2008 | $13.515 billion | $2.138 billion | $1.87 | 40,351 |
| 2009 | $14.599 billion | $2.070 billion | $1.84 | 41,158 |
| 2010 | $15.817 billion | $3.099 billion | $2.79 | 43,321 |
| 2011 | $15.933 billion | $3.096 billion | $2.86 | 45,499 |
Net sales rose in each year of his tenure, but net earnings and earnings per share in fiscal 2011 were below the fiscal 2007 level. Earnings in fiscal 2008 and 2009 included large charges: litigation charges of $366 million and $714 million, and acquisition-related items, mainly in-process research and development, of $390 million and $621 million.[14] Fiscal 2010 litigation charges of $374 million included a $444 million settlement of intellectual property disputes with Abbott Laboratories, partly offset by a $70 million gain from a settlement with W. L. Gore & Associates.[14] Growth slowed to one percent in fiscal 2011, a year with one fewer week than fiscal 2010.[15] Cash dividends rose from $0.44 per share in fiscal 2007 to $0.90 in fiscal 2011.[14]
The share price traded between a low daily close of $29.96 and a high of $46.03 in fiscal 2010 and between $31.21 and $44.13 in fiscal 2011.[14] On the day his retirement was announced the shares traded at $37.56 in the early afternoon, having fallen 15 percent in 2010 before that day.[6]
Compensation
The company's proxy statements reported Hawkins's total compensation as chief executive as $7.23 million for fiscal 2008, $9.05 million for fiscal 2009 and $9.61 million for fiscal 2010. His fiscal 2010 salary of $1.118 million, reduced by the April 2009 pay cut, was 81 percent of a market median of $1.38 million; his annual incentive paid out at 119.78 percent of target because the company beat its earnings per share and cash flow targets while missing its revenue growth target, and his three-year long-term performance plan paid 51.09 percent of target.[2]
Board memberships and outside roles
Current, as of October 2026
- Bioventus: Hawkins accepted an offer in December 2015 to become a member and chairman of the board of managers of Bioventus LLC, a Durham orthobiologics company, from January 1, 2016, for an annual retainer of $90,000 and 50,000 phantom profits interest units.[40] He has been chairperson of Bioventus Inc. since September 2020, and the company kept the chair and chief executive roles separate, with Robert E. Claypoole as chief executive.[17] He was re-elected in June 2026.[21]
- Biogen: director since 2019; as of its 2026 proxy statement he sat on the audit committee and the corporate governance committee and was designated an audit committee financial expert.[18] At the June 2026 annual meeting he received about 102.1 million votes for and 19.7 million against.[19]
- MiMedx: director since July 2, 2020, appointed as one of two nominees of an EW Healthcare Partners affiliate under rights granted when it bought the company's Series B preferred stock; he chairs the ethics and compliance committee.[38] He was re-elected in June 2026.[20]
- Private company boards: Virtue Labs, Enterra, Lacuna Medical, Cirtec Medical and Baebies.[18]
- Non-profit boards: the North Carolina Biotechnology Center and the Focused Ultrasound Foundation, to whose board he was elected in November 2016.[17][41][42]
Former
- Deluxe Corporation: director during his time as Medtronic's chief operating officer.[10][2]
- Medtronic: director from March 2007 to 2011.[2][33]
- Thoratec: director from January 1, 2012, and a member of its compensation committee.[25][43]
- Halyard Health, later Avanos Medical: director from December 1, 2015, to April 2021, initially on the governance committee and, from January 2016, chairman of the compliance committee and a member of the compensation committee.[7][17]
- Immucor: lead director from 2015 to 2021.[5][17]
- Earlier company biographies list him as co-founder and chairman of the Medical Device Innovation Consortium, past president of the American Institute for Medical and Biological Engineering, a director of AdvaMedDx, chairman of KeraNetics, nContact and RegenMed TX, and a member of venture capital advisory boards and of Singapore's Biomedical Sciences International Advisory Council.[24][44]
Duke University and civic roles
Hawkins was a member of the board of visitors of Duke's engineering school from 2002 to 2011, chairing it from 2009 to 2011, and was appointed an adjunct professor of engineering in 2011.[41] He was elected to the Duke University Board of Trustees in 2011, served as vice chair, and became a trustee emeritus in 2023. He also chaired the board of directors of the Duke University Health System.[17] During his time as Medtronic's chief executive he sat on the boards of the Guthrie Theater and the University of Minnesota Foundation.[2]
Controversies
Sprint Fidelis leads
The October 2007 suspension of the Sprint Fidelis leads hit the cardiac rhythm business and led to product liability litigation.[12][27] In fiscal 2011 the company recorded a $221 million settlement resolving certain outstanding Sprint Fidelis product liability claims.[14] A Bloomberg News report in December 2010 noted that Hawkins had become chief executive while the company was dealing with defibrillator recalls that began in 2005, and that in December 2007 it agreed to pay $114.1 million to settle lawsuits alleging that it had hidden defects in its Marquis line of defibrillators.[6]
Investigations and physician payments
The company's fiscal 2011 annual report disclosed subpoenas and other requests from state and federal agencies, including the Department of Justice and the Office of Inspector General of the Department of Health and Human Services, relating mainly to financial arrangements with health care providers, regulatory compliance and product promotion. It said similar requests had been made of its main competitors.[45] According to Bloomberg News, in December 2010 the company received a subpoena from the U.S. Attorney in western New York over sales, marketing and reimbursement practices for its brain stimulation products, and its payments to doctors had been cited in an October 2010 letter from Senator Chuck Grassley.[6]
Criticism of his record
Analysts were critical when his retirement was announced. Raj Denhoy of Jefferies said: "Hawkins was dealt a bad hand, and then he didn't play it that well", adding that growth had slowed and that acquisitions intended to restore it "hasn't worked out". JPMorgan analyst Michael Weinstein wrote that the company had "struggled to create shareholder value over the last 10 years".[6] Hawkins himself later called the Kyphon acquisition "a disaster".[13]
Personal life
Hawkins is the son of a former mayor of Durham, North Carolina.[13] He goes by Bill.[23] In 2016 he described Kim Westmoreland, with whom he was associated in KeraNetics, as his best friend.[13]
Recognition
- 2010: elected to the College of Fellows of the American Institute for Medical and Biological Engineering, "for technical and executive leadership of medical device developments that have improved human health and advanced cardiovascular device engineering".[41]
- 2016: elected a member of the National Academy of Engineering, one of 80 new members announced on February 8, 2016.[22]
- 2023: named trustee emeritus of Duke University.[17]
See also
References
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External links
- William "Bill" A. Hawkins, III, EW Healthcare Partners
- William A. Hawkins, Biogen board of directors