Sarasota manufacturer fires CEO for consensual employee relationship

A month after placing CEO Josef Matosevic on leave, Sarasota hydraulic cartridge valve manufacturer Helios Technologies has terminated him, saying he had “consensual personal relationship” with an employee. 

The publicly traded company, with $835.6 million in revenue in 2023, made the announcement in a statement after the markets closed Monday. The company’s board, the release states, “terminated Mr. Matosevic as President, CEO and board member without severance for cause” for violating “company policy and demonstrating behavior that was inconsistent with the company’s shared values and code of business conduct and ethics.”

Courtesy image

The end of Matosevic’s tenure leading Helios marks the second time in a little more than four years the company has fired a CEO for a violation of company policy regarding a consensual relationship with an employee. Wolfgang Dangel — who Matosevic was brought on to replace as the top executive — was terminated for the same reason in April 2020. Matosevic was named CEO June 9, 2020. 

Company officials, in the latest statement, say Matosevic’s violation of Helios policy didn’t “involve financial misconduct, or the integrity of the company’s financial systems or controls.”

Courtesy image

The company placed Matosevic on paid leave July 1 while initiating an investigation into his conduct. That day the company named CFO Sean Bagan interim president and CEO and named Philippe Lemaitre executive chairman in addition to his role as chairman. Both will continue in these roles while a search for a non-interim CEO is underway, the company says. The search, officials add, includes internal and external candidates.

“The board does not tolerate any actions that are inconsistent with our company's values and code of conduct and upon notification of the allegations, took swift and decisive action to initiate a thorough investigation leveraging independent outside legal counsel,” Lemaitre says in the release. “The board is initiating a comprehensive search process to identify a permanent successor who will execute on our strategic priorities and help Helios capture the significant growth opportunities ahead. Importantly, we are focused on identifying a leader that believes in our purpose and embodies our shared values.”

Helios shares are traded on the NYSE under the symbol HLIO. The company sells products in a host of markets including construction, material handling, agriculture, energy, recreational vehicles, marine and health and wellness. It sells its products to customers in over 90 countries. Helios has some 700 employees in Sarasota.