Illumina, a DNA-sequencing company based in San Diego, has accepted the resignation of its CEO Francis deSouza. The decision is seen as a victory for activist investor Carl Icahn, who had been pushing for deSouza's removal. Although deSouza had initially survived the activist's attack when he was one of eight directors re-elected to the board in May, the shareholders also elected Andrew Teno, a portfolio manager at Icahn Capital, to the board at the meeting.
In a letter to his employees on LinkedIn, deSouza stated, “After 10 life-changing years, I have decided that it's time for me to hand over the reins. Leaving you will be a loss, deeply felt. That said, I leave with a sense of fulfillment and pride at where, together, we have taken the company.”
Meanwhile, Charles Dadswell, senior vice president and general counsel, was named as the interim CEO as the company begins the search for a replacement. DeSouza, who had been with the company since 2013 and CEO since 2016, will remain in an advisory capacity until July 31.
Icahn had been pushing for board seats since March, criticizing the board and management for selling and then buying back cancer-detection firm Grail Inc. at a higher price. He also blasted the company for going ahead with that transaction despite opposition from European regulators. The investor has faced his own activist challenges in recent weeks, targeted by Hindenburg Research, which claimed his investment firm was overvalued and questioned its dividend payouts. Icahn called the report self-serving and refuted the allegations.
Icahn Enterprises, the investment firm founded by the investor, also recently reported that it had been contacted by the US Attorney's Office for the Southern District of New York seeking information on some of its units. Despite these challenges, Icahn has secured his desired outcome with the resignation of Illumina's CEO, as the company looks for new leadership.