Boston Scientific CEO Elliott Announces Retirement; Stock Price Nosedives

It looks like the minor kerfuffle that Boston Scientific CEO Ray Elliott caused last week by pooh-poohing the competition was just practice for this week's major kablooie. On Tuesday it was announced that, after less than two years on the job, the 61-year-old is stepping down as head of the company, sparking a flurry of speculation and sending the stock price into a steep dive.

Elliott was supposed to bring Boston Scientific back from the brink after taking over in 2009. But since then, things haven't gone quite as swimmingly as some might have hoped, leading some to question whether it was all just too much for the former head of Zimmer Holdings. As portfolio manager with Gabelli Health and Wellness Trust Mutual told Reuters:

“I think this was a tougher job than he thought. I don’t see him up and quitting out of short-term frustration. Ray is very well respected on Wall Street and he has done a decent job stabilizing the company. He was dealt a tough hand.”

According to Reuters, some were fretting that the move was a sign of more trouble to come for the company. While Elliott told Reuters that he knew "of no 'shoe' to drop," and wrote a letter to employees proclaiming that he was leaving of his own accord, the perception seemed to be that it was time to get out of Boston Scientific, as illustrated by that precipitous plummet in the stock's value.

At 10:44 AM (EST), the stock (BSX) was worth $7.82. In just 15 minutes, the share price tumbled by almost 12%, hitting $6.90 by 10:59. The stock staggered to a closing price of $7.02, after opening at $7.76—a loss of almost 9%.

John Ogg at 24/7 Wall Street did not mince words, speculating that it may be time for a "total break-up scenario" for the company, while Matthew Herper at Forbes.com mused about the tough nature of the industry overall and the toll it may have taken on the turnaround that Elliott was charged with bringing about in 2009.

Elliott, who said in a statement released by the company that the time had come for him “to permanently pass the baton to a long-term CEO,” will stay on until the end of December, and will help conduct the search for a new CEO.

What do you think about the seemingly shaky state of affairs at Boston Scientific? Don't forget that Medtronic is also looking for a new CEO; does it worry you that two of the most prominent companies in industry are currently without bosses?

— Thomas Blair