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Seven months after medical technology company PolyNovo (ASX: PNV) revealed workplace behaviour issues between chairman David Williams and senior management, the long-serving mouthpiece of the Melbourne-based company has resigned after 11 years in the role.
The shock move, which is reported to have been prompted by a lack of support for his position among major shareholders, follows the exit of former CEO Swami Raoti in May after he levelled allegations of bullying against Williams.
PolyNovo, which has been making great strides in international markets for its burns and serious-wounds treatment technology, says Williams will not stand for re-election at the annual general meeting scheduled for tomorrow.
His decision is reported to be due to a shortfall in support, as measured by proxy votes, ahead of the AGM.
Williams’ management style at PolyNovo has been the centre of controversy for some time, leading the company to engaged Philip Crutchfield KC and Katherine Brazenor in October last year to investigate the issues raised by Raote.
Among other initiatives, this resulted in PolyNovo engaging Alice DeBoos, of Kingston Reid, to provide training about appropriate workplace behaviour and employee and director responsibilities relating to these matters.
However, the boardroom discontent came to a head in May with the departure of Raoti, a former Johnson & Johnson veteran who led the company’s push into India shortly after his appointment.
Raoti was appointed in 2022 following a nine-month search by Polynovo after the sudden departure of former managing director Paul Brennan at the end of 2021 due to “differences with the board”.
Williams exit from PolyNovo, a company in which he holds a 3.1 per cent stake that is currently worth about $28.7 million, follows the appointment earlier this month of seasoned medical industry executive Bruce Peatey as CEO.
Peatey, who most recently ran the US, Canadian and Latin American markets for dental equipment group Dentsply Sirona, will assume the position on 1 December 2025.
The board is replacing Williams with current non-executive director Leon Hoare, who has more than 30 years of experience in the wound management and related medical technology sectors.
Hoare is currently managing director of Lohmann & Rauscher (Australia and New Zealand), a privately owned global medical device company, a position from which is stepping down at the end of December.
PolyNovo today acknowledged Williams' “significant contributions and leadership” during his tenure with the company.
"On behalf of the board and shareholders, I would like to thank David for his 11 years of dedicated service as chair,” says Hoare.
“Under David’s leadership, PolyNovo evolved from an early-stage medical device venture to a global medical technology company.
“The company achieved record growth in sales and expanded its presence to 46 countries, delivering innovative wound care solutions to patients worldwide.”
PolyNovo posted a 23 per cent increase in revenue to $129.2 million in FY25, leading to a 149 per cent boost in net profit $13.2 million.
"It has been a privilege to serve as chair of PolyNovo,” says Williams, whose boisterous personality has made him the primary spokesman for the group over the past decade.
“I am extremely proud of what we have accomplished, especially the number of lives we have changed and saved.
“I am very pleased with PolyNovo’s new CEO Bruce Peatey, new director Rob Douglas and new chair Leon Hoare.”
PolyNovo shares closed 5c higher at $1.345 today.
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