
Medical Device Manufacturer


Source: Medical Device Business Review
Author: Commenter
Reproduction without authorization is prohibited, and reproduction is allowed 24 hours later.
When the entire industry is overshadowed by layoffs and pay cuts, the salary increase for top executives of leading medical device companies exceeded 103%.
Recently, the latest executive compensation data disclosed by Medtronic shows that in the 2024 fiscal year, the total compensation for Chairman and CEO Geoff Martha was $20.1 million (approximately RMB140 million)。

The compensation package includes a salary of $1.4 million, $12 million in stock awards, $4.5 million in option awards, and a $1.9 million cash award under the Medtronic Incentive Plan (MIP).
In addition, he received $305,496 in other compensation, including $182,870 for personal use of the corporate aircraft and a $40,000 business allowance.

Medtronic CEO and Chairman Geoff Martha
Despite the total compensation from the previous yearIncrease by 30%,However, among the senior executives at Medtronic, this figure is not overwhelmingly dominant. According to the disclosed data, several top-paid executives have seen increases.As high as 85%。
The second-highest paid executive at Medtronic is former Executive Vice President and President of Medical Surgical, Bob White, who left at the end of fiscal year 2024. White's total compensation was $9.31 million, including a salary of $794,539, stock awards of $3.2 million, option awards of $1.2 million, and a MIP cash bonus of $794,539.
He also received $3.3 million in other compensation, primarily severance pay for unjustified dismissal.
White's total compensation was higher than the $5 million received in the 2023 fiscal year.Increased 85%。

Former Executive Vice President and President of Medical Surgical, Bob White, is the second highest-paid executive at Medtronic in the 2024 fiscal year.
The third highest-paid executive of Medtronic in the 2024 fiscal year is Karen Parkhill, who resigned from her position as Executive Vice President and Chief Financial Officer on August 2, 2024, to become the Chief Financial Officer of HP.
His total compensation was $8 million, including a salary of $911,233, stock awards of $4.4 million, option awards of $1.7 million, a MIP cash bonus of $943,091, and other compensation of $66,187.
Parkhill's total compensation was higher than the $6.1 million in fiscal year 2023.Increased30%。

Karen Parkhill, Former Medtronic CFO, Now Serves as HP CFO
Medtronic Executive Vice President of Global Operations and Supply Chain, Gregory Smith, received total compensation of $7.7 million in the 2024 fiscal year, including a salary of $872,100, stock awards of $4.7 million, option awards of $1.2 million, an MIP cash bonus of $820,537, and other compensation valued at $65,018.
Medtronic did not disclose Smith's compensation details from previous years. He left Walmart and joined Medtronic in April 2021.

Medtronic Executive Vice President of Global Operations and Supply Chain, Greg Smith
Medtronic Executive Vice President and Cardiovascular President Sean Salmon Received Total Compensation of $6.6 Million in Fiscal Year 2024, Including a Salary of $867,000, Stock Awards of $3.4 Million, Option Awards of $1.3 Million, MIP Cash Bonus of $774,952, Change in Pension Value and Non-Qualified Deferred Compensation Earnings of $185,359, and Other Compensation of $39,684.
Salmon's total compensation increased from the $5.4 million received in the fiscal year 2023.Increased22%。

Sean Salmon, Executive Vice President of Medtronic and President of the Cardiovascular Business
Medtronic Executive Vice President and President of Neuroscience Brett Wall received total compensation of $6.4 million in fiscal year 2024, including a salary of $749,358, stock awards of $3.4 million, option awards of $1.3 million, a MIP cash bonus of $670,610, and other compensation of $334,272.
Medtronic did not disclose Walch's compensation in previous years.

Brett Wall, Executive Vice President of Medtronic and President of Neuroscience
Medtronic stated in the overview of compensation practices: "The company's compensation plan aligns the interests of all our executives (including the designated executives whose compensation details are disclosed) with those of shareholders and employees.To ensure that we attract, retain, and hire talented executives.。”
Among other leading medical device companies, executive compensation has also risen significantly.
Boston Scientific: Full-Scale Expansion, CEO Salary Increase of 11%
Mike Mahoney is the Chairman, President, and CEO of Boston Scientific Corporation, and his total compensation in 2023 reached $18.72 million (approximately RMB130 million),Compared to the previous yearSalary increase of 11%,The remuneration package is already on par with Medtronic CEO Martha.
His compensation package includes a salary of $1.4 million, stock awards worth $10.47 million, option awards of $3.12 million, a cash bonus of $3.24 million, and changes in pension value and non-qualified deferred compensation earnings amounting to $291,667.
He also received $190,181 in other compensation, including $150,000 for personal use of the company plane.

Mike Mahoney, Chairman, President and Chief Executive Officer of Boston Scientific Corporation
Stryker: CEO's Annual Salary of 150 Million, Significant Pay Raises for All Executives
Stryker Chairman, CEO and President Kevin Lobo's salary has long been at the top of the medical device industry pyramid.In 2023, the total compensation was $20.77 million (approximately RMB 150 million), surpassing the CEO of Medtronic.
Lobo's total compensation in 2023 compared to 2022Increased by 12%。

In 2023, the total compensation of Kevin Lobo, Chairman, CEO, and President of Stryker, increased by 12%.
In the 2023 ranking of the top 100 medical technology companies by revenue, Stryker ranked sixth globally with a revenue of $18.45 billion in 2022.
In 2023, Stryker's sales exceeded the $20 billion mark for the first time, representing an 11% year-over-year increase.
Under the strong growth, the salaries of the company's other senior executives have also increased significantly.
Stryker Vice President and Chief Financial Officer, President of Surgical and Neurotechnology Group, President of Orthopaedics and Spine Group, President of Global Quality and Operations GroupIncreased by 17%, 13%, 14%, 22%。

Intuitive Surgical: Senior Vice President's Salary Increase of 103%
Intuitive Surgical, a leading medical device company in the field of surgical robotics, disclosed the executive compensation for the latest fiscal year ended December 31, 2023, in May this year.
The company reported annual sales of $4.28 billion (up 22% year-over-year) and net income of $1.34 billion (up 35%).
CEO Gary Guthart's compensation in 2023 was $12.4 million, compared to the previous year.Increased by 20%Guthart's compensation includes a salary of $955,000, stock awards of $7.4 million, option awards of $2.4 million, and non-equity incentive plan compensation of $1.6 million.
But Guthart's total compensation was slightly lower than that of President Dave Rosa, whose compensation in 2023 was $12.6 million, compared to the previous year.Increased by 103%。
Rosa's compensation package includes a salary of $676,676, stock awards of $8.1 million, option awards of $2.8 million, and non-equity incentive plan compensation of $860,120.

Dave Rosa, President of Intuitive
Rosa joined Intuitive in 1996. Over his 28-year career at the company, he rose through the ranks, joining the executive team in 2015 as Executive Vice President and Chief Commercial Officer. In 2019, he became the Chief Commercial Officer and was promoted to President in May 2023. Prior to this, Guthart held the roles of CEO and President.
The joys and sorrows of human beings are not interconnected. On the other end of "high salaries with no limits," low wages continue to repeatedly break through lower limits.
Data shows that the CEO of Medtronic, Martha, has a salary that is296 Times。
This gap is larger than Medtronic's CEO pay ratio of 230:1 from the previous year and the pay ratio of 215:1 in the fiscal year 2022.
The same is true for Boston Scientific, another giant in the industry, where the CEO's compensation is even higher than the company’s average employee salary.346 times,Compared to last year, it has expanded 123 times.

Boston Scientific Corporation Predicts,In 2023, the average salary of its employees was $54,147, down from $76,054 the previous year.
At the same time, the frequent cost-cutting measures by medical device companies also stand in sharp contrast to the significant salary increases for senior executives.
Take Medtronic for example, its revenue in the fiscal year 2024 increased by 4% to 32.4 billion US dollars according to the financial report.But net income and diluted earnings per share both decreased by 2%.。
This medical device giant has also been continuouslyMass Layoffs, and took other measures to reduce wage costs, such as the voluntary early retirement program in 2023.
Overall, it seems that except for a small number of top executives at the uppermost level, the entire medical device industry has not yet warmed up.
Then, why has the salary treatment of the team that should have progressed together shown a polarized trend, and what is the logic behind it?
Fundamentally, in the medical technology industry, recruiting and retaining top talent (whether executives or engineers) is crucial.
Senior executives typically need to work in a company for many years, even decades, to accumulate sufficient experience and resources to lead the enterprise. Their long-term contributions and stability are also important factors for companies willing to pay high salaries.
Moreover, this is also an important way to highlight the attitude towards talent and the ability to recruit talented individuals before competing companies.High severance pay is one of the manifestations.
Medtronic recently stated in a document that the departing executives will receive twice their annual salary, plus "(a) the target annual cash opportunity under the Medtronic Incentive Plan (MIP) or (b) the actual or projected payout of performance-based MIP, whichever is lower."
They can also receive "benefits" covering re-employment services and 24 months of continuous health and dental insurance.
The following is the estimated severance amount for Medtronic's executives:
Martha: $6.6 million (approximately RMB 47.28 million)
Smith: $3.4 million (approximately RMB 24.36 million)
Salmon: $3.3 million (approximately RMB 23.64 million)
Wall: $2.9 million (approximately RMB 20.77 million)
At the end of last year, BD Company shareholders proposed a motion to try to limit executive severance pay, including cash, equity, or other payments.
According to the policy, BD "will not enter into any new employment, severance, or separation agreements with executives... nor establish any new plans or policies covering executives that provide for cash severance benefits... exceeding 2.99 times the sum of the executive's base salary plus target year-end bonus, unless shareholder approval is sought for such agreements, plans, or policies."
BD Board Opposes the Proposal,The Board stated: "Long-term equity incentives are an important component of our executive compensation, tied to maximizing long-term shareholder value, and are used to recruit and retain executive talent.。
The shareholder proposal to include long-term equity incentive awards within the proposed severance or dismissal benefit cap would undermine the effectiveness of such incentives.
Secondly, the difference in salary structure is also an important factor that widens the gap between executive compensation and ordinary employees.
Executive compensation typically includes various forms such as base salary, bonuses, and equity incentives.
Among them, equity incentives are an important means used by many companies to attract and retain top talent. Through equity incentives, companies can align the interests of executives with the company's long-term interests, thus achieving a win-win situation.
Data from the Economic Policy Institute shows,Since 1978, the compensation of senior executives has soared by 1460%, with more than 80% of their compensation typically tied to stocks.
By contrast, workers' wages increased by only 12%.
Again, we should also recognize that even if senior executives and ordinary employees are in the same medical device company, they operate on completely different competitive trajectories.
In other words, the two are not comparable.
According to human capital theory, in terms of their own abilities, the management capabilities possessed by senior executives and the additional human capital they bring can far exceed that of ordinary employees;
In terms of decision-making influence, the decisions made by senior executives often directly relate to the survival of the enterprise, and every decision they make may bring significant economic impact. This high level of responsibility and influence is also one of the reasons for their high salaries.
Moreover, with the rapid development of technology and the expansion of market scope, companies need to compete globally. This competitive pressure makes companies rely more on the leadership and strategic vision of senior executives, thereby further widening the gap with ordinary employees.
Conclusion
However, not all executives' salaries can rise significantly without obstacles; the CEO of Smith & Nephew faced multiple collective protests against his pay raise.
In a sense, under the Anglo-American economic system, the market tends to reward capital rather than labor.
The huge gap in salaries among medical device company personnel ultimately stems from the core factor of value orientation.
Partial data source: Medical Design & Outsourcing

▼More Book Recommendations▼


If you find the content helpful, welcomeStar Mark、Like、Forward!
Your support is our greatest motivation



