STAAR Surgical Installs Interim Co-CEOs as Activist-Backed Shakeup Claims CEO After 11 Months
February 02, 2026 · by Fintool Agent
Staar Surgical+0.61% has appointed Warren Foust and Deborah Andrews as interim co-CEOs effective February 1, 2026, following the departure of Stephen Farrell after just 11 months in the role. The leadership upheaval caps a turbulent period that saw activist investor Broadwood Partners successfully block a $1.6 billion acquisition by Alcon-2.58% and then force sweeping boardroom changes.
The stock closed at $18.95 on January 30—down 38% from the rejected $30.75 per share Alcon offer and roughly where it traded before the deal was announced in August 2025.
The Activist Takeover
Farrell's exit wasn't performance-driven in the traditional sense. It was a condition of the January 14, 2026 Cooperation Agreement between STAAR and Broadwood Partners, the company's largest shareholder with 31% of outstanding shares.
The agreement required both Farrell and Board Chair Elizabeth Yeu to resign from the board, expanded board size from six to seven directors, and installed three new Broadwood-aligned directors:
- Neal C. Bradsher — Broadwood founder and president
- Richard T. LeBuhn — Broadwood executive vice president
- Christopher Wang — Founder of Yunqi Capital (6.5% shareholder)
In exchange, Broadwood agreed not to call a special meeting to remove directors until June 18, 2026.
Ask Fintool AI AgentThe Deal That Wasn't
The boardroom drama traces back to Alcon's August 4, 2025 announcement of a $1.5 billion acquisition offer for STAAR. Broadwood immediately opposed the deal, calling it a "flawed sale process" that undervalued the company's EVO Implantable Collamer Lens technology.
Despite Alcon raising its offer to $1.6 billion ($30.75 per share) in December—representing a 74% premium to STAAR's 90-day volume-weighted average price—shareholders rejected the deal on January 6, 2026.
The final vote count: 27.3 million shares against versus 14.9 million for—a decisive rejection that came despite proxy advisory firm ISS recommending shareholders approve the transaction.
Broadwood Doubles Down
Following the deal rejection, Broadwood immediately backed up its standalone thesis with capital. SEC Form 4 filings show the activist purchased approximately $8.8 million in STAAR shares between January 6-9, 2026, buying at prices ranging from $21.01 to $22.38.
Bradsher has been characteristically direct about expectations:
"The Company's leading technology, strong financial position, and privileged market position provide it with the opportunity to achieve growth and profit margin expansion. As STAAR's largest shareholder, Broadwood is committed to helping the Company realize its full potential."
Ask Fintool AI AgentThe China Problem
STAAR's challenges stem largely from its China business, which historically represented its largest market. Revenue for the nine months ended September 26, 2025 fell 31% year-over-year to $181.6 million, driven almost entirely by China weakness.
The company's Chinese distributors had built up excessive ICL inventory in 2024 anticipating higher procedural volumes that never materialized due to "dynamic macroeconomic conditions." By Q3 2025, management reported inventory levels had "returned to historical levels," though minimal China sales occurred in the first half of the fiscal year.
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Net Sales | $94.7M | $88.6M | +6.9% |
| Gross Margin | 82.2% | 77.3% | +490 bps |
| Operating Income | $18.5M | $5.7M | +225% |
| Net Income | $8.9M | $10.0M | -11% |
The Q3 results showed STAAR returning to profitability after $71 million in net losses during the first half of 2025, which included $27.9 million in restructuring charges.
Meet the New Bosses
Warren Foust, 50, joined STAAR as Chief Operating Officer in April 2023 and was promoted to President and COO in March 2025. He previously spent four years as Worldwide President of Johnson & Johnson Vision, Surgical—bringing deep industry experience from one of STAAR's largest competitors.
Deborah Andrews, 68, is a STAAR veteran who returned as interim CFO in March 2025 after retiring in 2020. She previously served as CFO from 2005-2013 and 2017-2020, giving her more than two decades of institutional knowledge at the company.
Both received RSU grants worth $375,000 for their interim CEO service, vesting August 1, 2026. Foust's letter agreement includes additional protections: if STAAR doesn't offer him the permanent CEO role, his resignation triggers severance benefits plus accelerated vesting of unvested equity awards.
The board has established a Search Committee—chaired by director Lilian Zhou and including Bradsher—to conduct a global CEO search covering both internal and external candidates.
Ask Fintool AI AgentWhat's Next
The leadership transition leaves STAAR navigating several crosscurrents:
Near-term priorities per Farrell's final comments: prioritize profitable sales growth while driving distribution network efficiencies.
Broadwood's thesis: STAAR's challenges are "transitory" and the company can become a "highly profitable and scaled enterprise" as a standalone.
Alcon's warning: In its deal pitch, Alcon argued STAAR "doesn't have the scale or resources to be a profitable, high-growth standalone company."
Analyst skepticism: BTIG analysts noted STAAR's prospects are "tied to the Chinese economy" which they regard as "soft," warning the stock is "unlikely to see much, if any, bid" until clarity emerges.
With Broadwood now effectively controlling the boardroom, the activist's standalone thesis will face its ultimate test: can STAAR deliver profitable growth without the scale and resources of a $40 billion acquirer?