executive compensation Archives - Medical Design Sourcing

BD pay increases for CEO Tom Polen and the median employee

A new Becton, Dickinson & Co. (BD) pay disclosure included gains for CEO Tom Polen and other executives, as well as an increase in pay for the device manufacturer’s median worker.

The BD pay disclosure — part of the company’s Securities and Exchange Commission filing ahead of its annual shareholder meeting — also included an update on BD’s new executive severance limits. After failing to defeat a shareholder proposal calling for a cap on executive severance payouts, the board adopted a more limited policy that only applied to cash payouts.

“We received positive feedback on this approach from the shareholders to whom we spoke during our 2023 engagement,” the company said. “Shareholders expressed their belief that this was a reasonable approach for BD to take in response to the proposal, and no investor we engaged with requested the inclusion of accelerated equity vesting in the calculation of the termination pay limit.R…

BD limits executive severance after ‘golden parachute’ shareholder proposal overcomes board opposition

Becton, Dickinson and Co. (BD) will now need stockholder permission for cash severance payouts to executives above a newly set limit.

It’s the latest example of how executive compensation is being scrutinized in the medtech industry, where the world’s largest device manufacturers have collectively reduced headcount even as revenue hits record highs.

BD’s medical and interventional segments make it the world’s 11th-largest device company, according to Medical Design & Outsourcing‘s 2023 Medtech Big 100 ranking.

The new executive severance policy took effect on Nov. 21, 2023, BD said in a filing with the Securities and Exchange Commission.

The board adopted the policy after a BD shareholder proposed more extensive limits at the company’s January 2023 annual meeting. Despite opposition from the board, the proposal won nearly 62% of votes cast (excluding absentions and broker non-votes).

The shareholder p…

ResMed executive pay increases; CEO’s total comp jumped 19%

Resmed logo

ResMed recently disclosed pay packages for its top executives, reporting boosts in total compensation for its CEO and his leadership team.

The respiratory device manufacturer has had the market mostly to itself ever since 2021, when competitor Philips started recalling millions of Respironics continuous positive airway pressure (CPAP) machines. Despite that advantage, ResMed has struggled to ramp up manufacturing volume, sales and profitability due to supply chain challenges, including shortages of semiconductors and other electronic components as well as higher costs for components, manufacturing and warehousing.

ResMed closed fiscal 2023 (ended June 30, 2023) with year-over-year revenue growth of 23% and net income growth of 15%. But the company’s fourth-quarter results disappointed analysts, and its stock has been sliding ever since.

ResMed’s top-paid executives

Cardinal Health CEO becomes one of medtech’s top-paid executives

Cardinal Health disclosed pay and perks for other leaders and its median employee, as well as severance payouts for two former top executives.

Cardinal Health CEO Jason Hollar [Photo courtesy of Cardinal Health]

Cardinal Health paid CEO Jason Hollar nearly $18.8 million in his first year on the job, the device manufacturer and pharmaceutical distrbutor said in a new executive pay disclosure.

That makes Hollar — who was Cardinal Health’s chief financial officer until his promotion in September 2022 — the second-highest-paid CEO among the world’s largest medical device manufacturers.

Abbott CEO Robert Ford is the top-paid CEO of all medical device manufacturers at $21.7 million in total compensation. Like Cardinal Health, Abbott also has a major pharmaceutical business, but Abbott does not disclose pay for Medical Devices EVP Lisa Earnhardt.

Hollar’s total compensation for fiscal 2…

Pay drops for Medtronic CEO and the median employee; bonus plan changes

Medtronic disclosed total compensation for its top executives as well as its median worker while revealing changes to the way Medtronic Incentive Plan bonuses will be calculated.

Medtronic (NYSE:MDT) paid Chair and CEO Geoff Martha $15.4 million in fiscal 2023, the world’s largest medical device company said in its annual disclosure of pay for top executives.

That’s a 14% decrease from the year before, primarily due to Martha receiving nothing this year under the Medtronic Incentive Plan (MIP).

Pay also dropped 14% to $67,073 for Medtronic’s median worker, which the company is required to identify for comparison to CEO pay. That CEO pay ratio increased from 215:1 to 230:1 in fiscal 2023 (ended April 28, 2023).

Dublin, Ireland-based Medtronic used the same individual employee as its median worker as it did last year, saying there was “no change in our employee population or employee compensation arrangements since that median was i…