Australia’s pathology giant is preparing for its most significant leadership transition in over three decades. After building one of the world’s largest diagnostic companies from a single Sydney laboratory, longtime executive is stepping aside.
Dr Colin Goldschmidt will retire at the company’s Annual General Meeting on 20 November 2025, with Dr Jim Newcombe set to become Managing Director and CEO with effect from that date , Sonic Healthcare announced on September 25th.
The succession represents a pivotal moment for the $11.09 billion company that has grown into a global healthcare powerhouse under Goldschmidt’s watch.
Three Decades of Medical Leadership Comes to End
Dr Colin Goldschmidt has led Sonic’s expansion from a single laboratory in Sydney onto the global stage to become the third largest pathology player in the world , according to company Chairman Professor Mark Compton.
Dr Colin Goldschmidt, Chief Executive Officer and Managing Director
The outgoing CEO’s tenure spans 32 years, during which he transformed the business into a multinational operation serving tens of millions of patients across Australia, Europe, the UK, and North America.
His departure marks the end of an era built on what the company calls “Medical Leadership” – a culture emphasizing doctor-led management and patient-focused care.
- Global Footprint: Largest private pathology operator in Australia, UK, Germany, and Switzerland
- Market Position: Second-largest provider in Belgium and New Zealand
- US Operations: Third-largest pathology services company in America
- Revenue Base: European operations generate majority of company income
New Leadership Team Takes Shape
Dr Jim Newcombe brings extensive credentials to the top role. Currently serving as CEO of Douglass Hanly Moir Pathology – Sonic’s founding practice and one of its largest laboratories globally – he’s spent eight years within the Sonic Healthcare system.
Dr Newcombe is a pathologist specialised in clinical microbiology, an infectious diseases physician and a senior medical leader who has delivered significant improvements in earnings and margins at his current operation.
His background includes:
- Medical training in Australia with US licensing examination completion
- Previous medical appointments in the United States
- Experience in both public and private sector governance
- Active practice history in clinical and laboratory medicine
New COO Appointment
Evangelos Kotsopoulos will be appointed to the newly created position of Chief Operating Officer of the Sonic Healthcare group . He currently heads Sonic Healthcare Europe and Germany, overseeing operations across Germany, Switzerland, and Belgium.
Evangelos Kotsopoulos, Chief Executive Officer, Sonic Healthcare Europe and Sonic Healthcare Germany
Market Response and Financial Context
Sonic Healthcare shares have faced headwinds throughout 2025, with the stock down approximately 19.27% year-to-date according to recent analysis. The company maintains a market capitalisation of around $11 billion with 494.24 million shares outstanding.
The succession announcement comes as healthcare stocks on the ASX have shown mixed performance, with sector leaders like CSL and other major players navigating challenging market conditions.
Financial Highlights:
- Revenue: $9.65 billion over past 12 months
- Profit: $513.60 million annually
- Dividend Yield: 4.77%
- Free Cash Flow: $960.55 million
Sonic Healthcare Share Price
Compensation Structure Reveals Strategic Focus
The new CEO’s employment terms signal the board’s commitment to performance-driven leadership:
- Fixed Remuneration: $1.75 million per annum, inclusive of superannuation and any salary packaging components
- Short Term Incentive: Eligible to earn an STI with target value equal to 100% of Fixed Remuneration (capped at maximum of 150% of Fixed Remuneration) p.a.
- Long Term Incentive: Eligible to be granted an annual long term incentive with target value equal to 200% of Fixed Remuneration
Industry Context and Future Direction
The leadership change occurs as Australia’s healthcare sector continues evolving. Recent developments include major mergers like Chemist Warehouse and Sigma Healthcare, highlighting ongoing consolidation trends.
Healthcare stocks have shown resilience despite broader market volatility, with companies benefiting from demographic tailwinds and essential service demand.
Dr Newcombe said: “It is a great honour to have been chosen to lead Sonic Healthcare, a company that operates under a culture of Medical Leadership, lives by its Core Values, and positively impacts the health of tens of millions of people across the world each year”
Smooth Transition Planned
Following his retirement, Dr Colin Goldschmidt will be retained as Advisor to the Sonic Board in a part-time unpaid capacity and will continue to chair the Sonic Healthcare Foundation board .
Both leaders will present at the upcoming Annual General Meeting, ensuring stakeholders have direct access to hear the transition strategy firsthand.
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Final Thoughts
The succession represents careful succession planning by a board committed to preserving Sonic’s medical leadership culture while positioning for future growth. With healthcare sector performance remaining a key focus for ASX investors, market watchers will closely monitor how the new leadership navigates both domestic and international challenges.
As Australia’s third-largest listed company in healthcare prepares for this historic transition, the November AGM promises to be a defining moment for one of the ASX’s most established healthcare operators.
FAQ
Q: When does the CEO change become effective?
A: Dr Jim Newcombe officially becomes CEO on November 20, 2025, following the Annual General Meeting.
Q: What’s Dr Newcombe’s background?
A: He’s a pathologist and infectious diseases physician currently leading Douglass Hanly Moir Pathology, with eight years at Sonic Healthcare.
Q: Will there be other leadership changes?
A: Yes, Evangelos Kotsopoulos becomes the new Chief Operating Officer, overseeing global operations.
