{
  "docId": "019f6b8f-539e-76ae-9e05-c3ee7dac0544",
  "docSlug": "jarvis-politan-capital-masimo-presentation-may-2023",
  "documentTitle": "Politan Capital Masimo Presentation May 2023",
  "authorId": "politan-capital-masimo-presentation-may-2023",
  "authorName": null,
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2023-05-01 00:00:00",
  "orientation": null,
  "aspectRatio": null,
  "pageNumber": 39,
  "pageCount": 74,
  "prevPage": 38,
  "nextPage": 40,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "balanced",
  "nDataPoints": 4,
  "notes": "The chart uses a single red bar for Masimo to highlight the 38x outlier status compared to the peer median.",
  "elementsJson": null,
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019f6b8f-539e-76ae-9e05-c3ee7dac0544/39",
  "deckHref": "/decks/019f6b8f-539e-76ae-9e05-c3ee7dac0544",
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  "deckAnchorHref": "/decks/019f6b8f-539e-76ae-9e05-c3ee7dac0544#slide-39",
  "components": [
    {
      "bbox": {
        "h": 0.35,
        "w": 0.9,
        "x": 0.05,
        "y": 0.45
      },
      "kind": "chart",
      "text": "Change in Control Payment",
      "attrs": null,
      "subkind": "bar-vertical",
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      "componentId": "f1c92bed-ba6f-412e-9f1c-7312428cb221",
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    {
      "bbox": {
        "h": 0.15,
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      },
      "kind": "list",
      "text": "Size is outrageous: special payment is 38x peer median, 12x next highest peer, and 37x peer median as % of sales. Terms are unprecedented: unlike any peer, payment is awarded even if there is no actual change in control. Yet, in 2017 & 2021 amendments, current Board made the ~$600M special payment permanent. Mr. Kiani’s grants and initial holdings (including shares he has sold) have added up to ~20% of Masimo.",
      "attrs": null,
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      "bbox": {
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      },
      "kind": "paragraph",
      "text": "Company and peer filings. Masimo change in control payment calculated as per proxy statement and includes: (i) 2x annual base salary (ii) 2x average bonus payment of last 3 years (iii) value of accelerating unvested options using Black Scholes with company's disclosed assumptions (iv) 100% of unvested PSUs at average of 100% of target value and 200% of target value (maximum) (v) special payment of 2.7M shares (vi) special payment of $35M (vii) other cash payments as per proxy statement (viii) continuation of benefits as per proxy statement. Calculations assume trailing 30 day stock price as of May 22nd, 2023. Results in $586M to $614M value transfer to Mr. Kiani depending on unvested PSU assumption.",
      "attrs": null,
      "subkind": "disclaimer",
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      "componentId": "16f56aee-7997-441e-ab9e-92e9ec2dff87",
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      "bbox": {
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      },
      "kind": "title",
      "text": "~$600M Payment Terms Act as Poison Pill, Size is Egregious; Yet Current Directors Made It Permanent",
      "attrs": null,
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  ],
  "metrics": [],
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  "frameworks": [
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      "matchId": "be0e3fa1-feae-4f7c-b13f-dce5a05dfdc6",
      "evidence": "Highlights excessive compensation and governance failures as a 'poison pill'.",
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      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Agitate",
      "beatSlug": "problem-agitate-solution-agitate-make-it-worse",
      "evidence": "Slides agitate the problems by providing evidence and critique.",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
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  ],
  "loops": [
    {
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      "name": "Tale Two Worlds",
      "slug": "04-tale-two-worlds",
      "bestFor": "Competitive analysis, benchmarking, case for change",
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      "evidence": "Slides contrast current performance with potential benefits of change.",
      "position": 0,
      "objective": "Contrast Masimo's performance with potential under new governance.",
      "structure": "Current State -> Desired State / Benchmark -> The Gap & Implication",
      "confidence": 0.7,
      "description": "Show the gap between two states to drive urgency or highlight opportunity"
    },
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      "to": 74,
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      "name": "Cost Of Inaction",
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      "bestFor": "Urgent budget requests, compliance, risk mitigation",
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      "evidence": "Slides discuss risks of inaction.",
      "position": 1,
      "objective": "Highlight risks of not changing Masimo's governance.",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
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