Baxter International has prohibited cash severance payments that exceed three times the total of an executive’s salary and target annual bonus opportunity without shareholder approval.
The company disclosed the new policy as it restructures the business and cuts staff while looking to rebound from a multibillion-dollar net loss for 2022.
Deerfield, Illinois-based Baxter is the world’s 10th largest medical device company, according to the Medtech Big 100 list.
That ranking was based on Baxter’s $12.78 billion in revenue for 2021; the company last week reported 2022 sales of $15.1 billion and a full-year loss of $2.4 billion. That loss was primarily due to a $3.1 billion charge related to Baxter’s purchase of Hillrom.
Baxter announced the executive severance policy yesterday while naming presidents for its vertically integrated global business units. The company last week announced layoffs as it restructures the busin…