The most striking thing about Edwards Lifesciences Corp.’s executive team: the consistency of its members and the preeminence of Chief Executive Michael Mussallem.
Eight other people on the Irvine heart valve maker’s executive team have been with Mussallem and Edwards since its birth as a stand-alone company in early 2000.
That’s when Baxter International Inc. spun off its former heart valve business unit. Many, including Mussallem, date back to Baxter.
In fact, Edwards’ team took shape in the run-up to the spinoff, according to Mussallem.
Edwards changed more than half of its senior executives from 1998 to 2001, Mussallem said. Everyone was evaluated on whether they’d be good corporate leaders.
“When we spun, we had just finished our second year of a very rigorous talent management system,” Mussallem said. “We knew if we were going to be a successful stand-alone business, we would need to do a serious talent adjustment.”
The hallmarks of Edwards’ team, according to Mussallem: business acumen, leadership, ability to engage in “creative debate” and egos that are in check.
Mussallem, who’s also chairman, dominates. The closest to a No. 2 is Chief Financial Officer Thomas Abate, an Edwards original who came from Baxter and became financial chief last year.
Regular, face-to-face meetings with Mussallem are key to the team, said Corinne Lyle, Edwards’ president of global operations and former chief financial officer before Abate.
“Mike is pretty much versed on all of his stuff before the meetings,” Lyle said. “Rarely does he find out anything at the meeting; at least that’s the hope.”
The face-to-face contact is critical, said Stuart Foster, Edwards’ corporate vice president of the company’s critical care and vascular operations.
“This type of frequent interaction ensures that rarely, if ever, do we get into a position where the management team is not pulling in the same direction,” said Foster, who’s been with Edwards since the spinoff.
Mussallem’s emphasis on “creative debate” plays out in meetings, according to executives. On the conference room wall is a picture of a tornado in an acrylic frame.
“The visual around that is that it’s OK to have that creative debate,” said Carlyn Solomon, vice president and general manager of critical care. “You can create a tornado if you feel it’s appropriate.”
Meetings can get lively, according to Lyle.
“Every once in a while, the passion comes through when things get tense,” she said. “But I personally view that as healthy in terms of people willing to really speak their mind as long as it’s not intimidating.”
As a young company, Edwards isn’t big on rigid, traditional corporate structure. The issue of having a clear second-in-command has come up in board meetings, Mussallem said. But he said he thinks it would be more disruptive than helpful at this stage.
“Typically, when you name a COO, you are acknowledging the No. 2 in the company,” said Mussallem. “Although we have several possible CEO successors that we discuss at every board meeting, we felt that it would be disruptive to the teamwork that we have going with our executives if we named a COO or No. 2.”
Mussallem, 54, is hesitant to pinpoint possible heirs: “We don’t generally discuss this publicly, (but) you can bet that we take this very seriously,” he said.
Directors, who include David Pyott, chief executive of Irvine-based Allergan Inc., and Robert Ingram, vice chairman of pharmaceutical operations at GlaxoSmithKline PLC, are updated on the performance of any potential successors, according to Mussallem.
“What’s really great at Edwards is the strong team dynamics,” said Pyott, a director since 2000. “And, as often with a strong team, there’s different types of people on it.”
Anita Bessler, vice president of heart valves and cardiac surgery systems, has deep industry knowledge, according to Pyott.
Foster is a “skeptical thinker,” he said.
“He can pick up a piece of paper and say, ‘I wonder if there’s a beetle under here,'” Pyott said. “On a team, you always need somebody who’s looking from the other side.”
Edwards’ team has seen “gradual evolution,” Pyott said. Newcomers from startups have brought “new insights and new skills.”
As a boss, Mussallem is “fairly hands-off,” Lyle said.
“It’s all about communication, so he doesn’t want to not be privy to things that have a major impact on the company,” she said.
Mussallem “doesn’t have to be involved in the day-to-day minute details, but he certainly wants to know if there’s any major development that might be driving the way a decision could come out,” Lyle said.
Edwards has “a pretty big voice mail culture,” Solomon said.
“You can send Mike a voice mail and literally within hours, you’ll have a response,” he said.
Baxter looms large in the backgrounds of many on Edwards’ team. Others took different paths to the company.
Lyle came from Tularik Inc., a drug developer in South San Francisco before being bought by Amgen Inc.
Several executives hail from Johnson & Johnson: Alex Martin, corporate vice president of North America; Keith Reisinger, corporate vice president, vascular; and Stanton Rowe, corporate vice president, advanced technology.
Edwards’ larger management team includes vice presidents and general managers who are seen as up-and-comers: Solomon, Larry Wood, who is over transcatheter valve replacement, and Don Bobo in transcatheter valve repair.
“They are just exceptional,they’re right at the prime of their careers in terms of their ages and great experience and obviously have the wherewithal and the leadership to be part of the executive leadership team here,” Lyle said. “I have a tremendous amount of confidence in the young team, the newer adds.”
Solomon, 44, is one of the newer members of Edwards’ executive ranks, arriving about a year and a half ago from Baxter, where he knew Mussallem.
“When I decided I wanted to make a change in my career, it just kind of happened serendipitously that Mike and I had reconnected,” Solomon said.
He said he was invited by Mussallem to meet with other Edwards executives and was impressed before coming aboard.
Executive retreats have been “a real positive in building the bonds,” Foster said.
“Every other year, we’ve been going to a place called Cal-a-Vie, which is a spa down near Carlsbad,” Lyle said.
The retreats usually are three to four days and include unwinding and “fairly rigorous physical activities,” including hikes, yoga classes, cardiac training as well as spa treatments, she said.
Spouses come along, she said.
“It’s a nice time to bond with everybody’s significant other,” Lyle said.
The executives keep busy outside the office.
Lyle is big on sports. She played tennis at Stanford University, where she received her bachelor’s degree. She said she enjoys watching her 10-year-old and 12-year-old sons play baseball and soccer.
“Since I played competitive sports, I guess I’m fairly intense,” she said. “I want the kids to be engaged and work hard.”
She’s quick to add: “I’m not a total taskmaster or anything.”
Solomon rides his bicycle, kayaks on the sea and rides mountain bikes. Being fit, he said, helps with his travel schedule.
“You have to have a lot of stamina,” Solomon said. “It’s not unusual for you to travel for 20 hours and then be in six hours worth of meetings. And I think the better health you’re in, the more fit you are, you’re just able to handle that much more readily and not get sick.”
THE TEAM
– Thomas Abate: 53, corporate vice president, chief financial officer and treasurer. Assumed current role in 2006 after serving as corporate controller. An Edwards original, played key role in 2000 spinoff from Baxter. Joined Baxter in 1982, serving in various financial positions of different responsibilities.
– Anita Bessler: 59, corporate vice president, heart valve, cardiac surgery systems, since 2001. Edwards original. Served as corporate vice president, cardiac surgery, 2000-2001. Joined Baxter in 1988 as vice president, general manager of sales, marketing, for Hyland division. President, cardiac surgery, in 1991.
– Stuart Foster: 56, corporate vice president, critical care, vascular. Edwards original. Was corporate vice president, global operations before assuming current post. Joined Baxter’s cardiovascular unit as vascular businesses president in 1994. Assumed global oversight for critical care businesses in 1997.
– Bruce Garren: 60, corporate vice president, general counsel, government affairs. General counsel since 2000. Before Edwards, was senior vice president, general counsel for Safeskin, San Diego maker of healthcare gloves. Earlier, was general counsel of Tambrands, Tampax maker now part of Procter & Gamble.
– John Kehl Jr.: 53, corporate vice president, corporate strategy, business development. Edwards original. Baxter veteran, joined in 1975 in treasury department. Served as manager of Baxter’s investor relations and communications, eventually became vice president, business development, of Baxter cardiovascular unit.
– Corinne Lyle: 46, president, global operations. Took job in 2006, after serving three years as chief financial officer, treasurer. Came to Edwards in 2003. Was director, vice president, chief financial officer at Tularik, drug developer sold to Amgen in 2004.
– John “Alex” Martin: 53, corporate vice president, North America. Came to Edwards from Johnson & Johnson’s Cordis, where he was senior vice president, international. Earlier at Cordis, served as sales, marketing vice president, oversaw U.S. coronary therapeutic, diagnostic device sales.
– Robert Reindl: 53, vice president, human resources. Edwards original. Previously was vice president, human resources, for Baxter’s cardiovascular unit. Joined Baxter in 1993, after spending six years with Arthur Andersen.
– Keith Reisinger: 46, corporate vice president, vascular. Before Edwards, was vice president, chief operating officer of startup Transurgical. Earlier was vice president of Miravant Medical Technologies. Career includes 15 years with Cordis, including as general manager of endovascular systems after 1996 J & J; acquisition.
– Stanton Rowe: 55, corporate vice president, advanced technology. Came to Edwards in 2004 by way of Percutaneous Valve Technologies acquisition. Was Percutaneous’ president, chief executive, helped start company in 1999. Career includes stints with Datascope, Johnson & Johnson Information Systems and Cordis.
– Patrick Verguet: 49, corporate vice president, Europe. Earlier was Edwards’ sales vice president, country management for Europe. Started career 21 years ago with France’s Travenol, later worked for Baxter Europe, which became part of Edwards.
– Huimin Wang: 49, corporate vice president, Japan, Intercontinental. An anesthesiologist, was representative director for Baxter in Japan until 2002, prior to coming to Edwards. Joined Baxter in 1993. Earlier jobs included serving as president of medical systems, devices.
– Randel Woodgrift: 45, corporate vice president, manufacturing. Edwards original. Held various positions at Baxter prior to spinoff. Like many other local device executives, has roots in American Hospital Supply, which Baxter bought in 1985.
– Carlyn Solomon: 44, vice president, general manager, critical care. Before Edwards, was with Baxter BioScience, where positions included vice president, global operations. Joined Baxter in 1991. Career includes stint at General Motors.
