Change continues to come fast at Masimo Corporation as well-known and respected Brand President and General Manager Joel Sietsema announced on Tuesday that he was no longer with Masimo Consumer, the audio division of the company. This announcement, coming as it did without warning or explanation, raised a lot of eyebrows around the industry – with many reaching out to Strata-gee seeking context.
Here’s what I found out…
As most Strata-gee readers know, Masimo Consumer is the division of Masimo Corporation that was formed when it acquired Sound United, a portfolio company holding several key audio brands, such as Bowers & Wilkins, Denon, Classé, Marantz, HEOS, Polk, Definitive Technology, and more. Masimo said it acquired the company in order to facilitate a launch into the consumer healthcare market.
On Tuesday morning, Joel Sietsema (seets’ eh mah), a top executive with the company, announced on LinkedIn that the day before, Monday, had been his last day with Masimo Consumer. Sietsema has been with Sound United for ten years and although I did not know him personally, I have spoken to many in the industry who hold him in high esteem. The LinkedIn post was, for me, a surprising development, and based on several conversations I’ve had since seeing this, many others were surprised as well.
Held a Key Role
Sietsema held a key role at the company as President and General Manager of Denon, Polk, Definitive Technology & Boston Acoustics, according to his LinkedIn profile. Masimo Consumer, like Sound United before it, is structured more like a consumer packaged goods (CPG) company, rather than a more traditional CE manufacturer. With this different structure, they sometimes utilize position titles that sound familiar but are implemented differently in a CPG structure.
One of those titles is President, which in some companies can be the top executive of the company. However, in a CPG-style structure, they are more like individual brand managers. That’s not to suggest the role is diminished, the top brand manager is still a key role in any company…just not the highest-ranking executive in the division.
News Heightened by Boardroom Turmoil at Masimo Corp
Adding to the interest surrounding Sietsema’s announcement is the turmoil at Masimo resulting from the actions of an activist investor (Politan) taking seats on the board and agitating for the disposal of the Sound United business. As I have reported, that battle has recently escalated with the company announcing it was planning to spin-off the consumer business and Politan announcing it was seeking two more seats on the Board which would give them control of the company.
Sietsema posted a four-paragraph message on LinkedIn, that appeared heartfelt, noting that he was “filled with bittersweet emotions.” He said he was grateful for the experiences he had at “SU,” including the “brilliant people” he worked with.
A Great Debt of Gratitude
The post also expressed “a great debt of gratitude” to former Sound United CEO Kevin Duffy, Jim Minarik, Blair Tripodi (COO of Masimo Consumer), Joe Kiani (CEO of Masimo Corp), and more. The tone was positive and even a bit wistful. However, the post gives no clue as to just what the circumstances were surrounding this turn of events. He finishes by saying he is “excited about what the future holds.”
I spoke with a source at Masimo – someone in a position to know the facts but who asked not to be identified – who confirmed that Sietsema has left the company. When I inquired about the circumstances surrounding his departure, I was told the company would not comment on that due to the fact that personnel matters are confidential.
Company was ‘Fortunate’ and ‘Appreciative’
Later I was told by the same source that, “For our company and the brands that he touched every day, we were very fortunate, and are appreciative of his leadership over the last ten years.” Then I was told that the parting was “mutual” and with “no hard feelings.”
Later in the week I finally connected with Sietsema to see if he could shed some further light on the situation. He was reasonably forthcoming and his narrative tracked the response I received from Masimo Consumer.
For reasons that I really can’t go into, it definitely was a mutual decision. There are reasons that I think both of us have that makes this move make sense at this time. And it has nothing to do with the most recent announcement about the spin-off. My status was decided far, far beforehand – and this spin-off conversation is obviously a bit more recent – as per your reporting.
Joel Sietsema
During our conversation, Sietsema sounded relaxed and earnest to dispel any concerns folks may have about this move. He told me he is planning on taking some time off, including looking forward to an upcoming vacation with his family.
“I’m super happy with the way that I’ve been treated by the company,” Sietsema said. “And I feel like I’ve treated the company extraordinarily well, in the same way. We’re leaving on great terms. I wish the company well.”
Sietsema even told me that he sees a bright future for the company – although details are confidential. Even so, “…the products and the direction of the brand, where they’re trying to take it in the coming quarters and years is very exciting,” he said with a touch of enthusiasm in his voice. “So I’m optimistic about the outlook for the organization. I really mean it.”
Learn more about Masimo by visiting masimo.com.
Another pro management piece?
Maybe they can fish for board votes on YouTube like Disney is doing.
Sound United leadership was arrogant and bloated. Why was there a President for each brand, even prior to Masimo? Did Marantz really need its very own President to lead the brand?
Sound United only highlighted top management on its website in their “About Us” page. This included Joel in his backwards ballcap. These select handful of “leaders” made it appear as if they were the OG founders and innovators behind their legacy brands. Instead, they came across as a group of frat boys who slap butts and high-five each other in closed meetings. Those who actually worked at Sound United prior to Masimo’s highly questionable acquisition truly know the culture and atmosphere Duffy created there.