ResMed has appointed CEO Michael “Mick” Farrell, MBA, MSc, as chair of its board. He succeeds his father, founder and current chair Peter Farrell, PhD, who will become chair emeritus and remain an active board member.

Mick Farrell became ResMed’s CEO on March 1, 2013, and has served as a member of the company’s board of directors since. Under his leadership, ResMed’s market capitalization has grown from $6 billion to over $30 billion, delivering a total shareholder return of 507% or 20% average annual growth in value over that same period.

Combining the chair and CEO roles will allow for streamlining and efficiency and is aligned with the structure held by many of the company’s peers on the S&P 500, according to Ron Taylor, ResMed’s lead independent director and chair of the nominating and governance committee.

“I am honored to expand my role with ResMed as its next chair and to succeed my dad, Peter Farrell, whose vision, leadership, and guidance have helped ResMed become the largest outside-hospital, digital health company in the world,” says Mick Farrell in a press release. “I look forward to working with and leading our strong, diverse, and talented board in continued value creation for stockholders and all our stakeholders.”

“I am grateful for the opportunities I have had to lead ResMed and its board over the past many years,” says Peter Farrell in the release. “ResMed is on a clear growth path with strategic priorities intact; it’s the right time for me to step aside and reduce my commitments as chair, so I can devote more time to other boards and philanthropic interests. I will remain an active ResMed board member as chair emeritus and will continue to work closely with Mick, ResMed management, and the board as a steward of ResMed’s strategy, innovation, and culture.”

Photo: ResMed CEO Michael Farrell (left) is appointed board chair, while Peter Farrell (right) becomes chair emeritus.