Executive Shakeup at Illumina: CEO Francis deSouza Steps Down Amid Activist Investor Carl Icahn's Pressure

Illumina Inc (NASDAQ. ILMN) announced that its Board of Directors accepted the resignation of Francis deSouza as Illumina’s Chief Executive Officer and Director, effective June 11. 

Charles Dadswell, Senior Vice President and General Counsel, has been named interim CEO while the Board of Directors searches for a new CEO. 

Mr. deSouza has been with Illumina since 2013 and served as chief executive since 2016.

Mr. deSouza will remain in an advisory capacity until July 31, 2023.

The resignation comes as Illumina has been locked in a proxy battle with activist investor Carl Icahn over its $7.1 billion acquisition of cancer test maker Grail which has faced regulatory hurdles. 

Icahn had urged shareholders to vote out its chairman, John Thompson, and deSouza. Company shareholders voted out Thompson in late May.

Icahn has accused Illumina’s executive management and board of poor oversight, particularly concerning its controversial $7.1 billion acquisition of cancer test maker Grail in 2021. 

Similarly, in an open letter to Illumina shareholders in April, Icahn accused deSouza of “desperately, hilariously and, most of all, unsuccessfully” trying to spin “decidedly mediocre” quarterly results during a press tour.

Icahn tweeted that he is “happy” to see the recent changes at Illumina.

In March, Carl Icahn clarified that he wanted management change with former CEO Jay Flatley to return and Grail Inc divested.

Carl Icahn is poised to secure enough shareholder support to place Andrew Teno, an Icahn nominee, to join Illumina’s board.

Price Action: ILMN shares are up 2.98% at $206.50 during the premarket session on the last check Monday.