ConMed’s employment practices reveal an alarming degree of nepotism and cronysim. For starters, was J. Corasanti – the family scion and a former attorney – really the best choice to replace E. Corasanti? One wonders whether there might have been candidates from outside the Company – or at least from outside the family – better suited to run a complex global medical device operation such as ConMed. Apparently J. Corasanti beat out at least one other candidate for the job: His brother, David Corasanti, who also works at ConMed. Given ConMed’s serial acquisitions, we also respectfully question whether William W. Abraham remains the optimal choice to lead ConMed’s corporate and business development activities – at age 82. Were Mr. Abraham to retire he’d still be able to keep close tabs on ConMed, as he has two sons-in law employed by the Company.
And while the Company hasn’t disclosed it in its filings, we’ve learned that J. Corasanti’s sister-in-law is also a member of ConMed’s senior management team. Heather L. Cohen is “Executive Vice President, Human Resources, Deputy General Counsel and Secretary.” In this role, she’s involved in managing the personnel dynamics and conflicts of interest at ConMed, including those between the Corasantis and the Company – despite the fact that Ms. Cohen herself is part of the family. We fail to see how she can discharge these responsibilities impartially and we particularly can’t understand how ConMed believes this isn’t material enough to warrant disclosure.
The boundary between business and personal expenses at ConMed is quite blurry. Several of the top executives are furnished with munificent perquisites, such as country club memberships, automobile leases and special insurance policies. There’s also a tradition of ConMed making payments to related parties, such as to E. Corasanti’s brother-in-law; to J. Corasanti’s father-in-law and brother-in-law; and to the law firm of a former director, Robert E. Remmell, throughout his tenure on the Board. Most recently, J. Corasanti used ConMed assets to promote the book of his wife, Michelle Cohen Corasanti,3 including the use of his staff’s time, corporate letterhead and Company email accounts. Shareholders wonder where the line is drawn between the assets of ConMed and the interests of the Corasanti family, or if there’s a line at all.
And while the Company hasn’t disclosed it in its filings, we’ve learned that J. Corasanti’s sister-in-law is also a member of ConMed’s senior management team. Heather L. Cohen is “Executive Vice President, Human Resources, Deputy General Counsel and Secretary.” In this role, she’s involved in managing the personnel dynamics and conflicts of interest at ConMed, including those between the Corasantis and the Company – despite the fact that Ms. Cohen herself is part of the family. We fail to see how she can discharge these responsibilities impartially and we particularly can’t understand how ConMed believes this isn’t material enough to warrant disclosure.
The boundary between business and personal expenses at ConMed is quite blurry. Several of the top executives are furnished with munificent perquisites, such as country club memberships, automobile leases and special insurance policies. There’s also a tradition of ConMed making payments to related parties, such as to E. Corasanti’s brother-in-law; to J. Corasanti’s father-in-law and brother-in-law; and to the law firm of a former director, Robert E. Remmell, throughout his tenure on the Board. Most recently, J. Corasanti used ConMed assets to promote the book of his wife, Michelle Cohen Corasanti,3 including the use of his staff’s time, corporate letterhead and Company email accounts. Shareholders wonder where the line is drawn between the assets of ConMed and the interests of the Corasanti family, or if there’s a line at all.