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

11 Oct 2023
www.medicaldesignandoutsourcing.com
Executive ChangeFinancial Statement
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 ResMed paid CEO and Chair Mick Farrell nearly $13.9 million in total compensation, according to a disclosure filed with the U.S. Securities and Exchange Commission . Farrell’s pay package included a $1.1 million salary, $8.2 million in stock awards, $2.7 million in option awards and a $1.5 million cash performance bonus. He also received $230,191 worth of other perks and benefits, including personal use of corporate aircraft worth $168,047. His pay increased nearly 19% from fiscal 2022, when he didn’t receive any option awards. ResMed’s second-highest-paid employee was President and Chief Operating Officer Rob Douglas. The company reported nearly $6.7 million in total compensation for Douglas, up 5% from the prior year. He was followed by Sleep and Respiratory Care Business President Lucile Blaise at nearly $3.5 million. That included $418,668 in relocation expenses in connection with her July 2022 promotion from VP of sleep and respiratory care for Western Europe, which moved her employment location from France to the U.S. (ResMed did not disclose her fiscal 2022 pay.) ResMed reported $3.3 million for SaaS President Bobby Ghoshal (up nearly 16%) and $3.1 million for CFO Brett Sandercock (up nearly 8%). Farrell’s father, ResMed founder Peter Farrell, was non-executive chair of the company’s board until January 2023, when he took the new title of chair emeritus. The company said he received the regular board compensation for fiscal 2023: a $70,000 retainer and $250,000 equity grant. The company also paid Peter Farrell a $300,000 salary as a non-officer employee ResMed employee pay The SEC requires publicly traded companies like ResMed to calculate the gap between CEO compensation and pay for its median employee, a metric called the “CEO pay ratio.” ResMed reported $59,197 in total annual pay for its median employee, which the company selected after excluding nearly 5% of its employees in “certain jurisdictions.” The company said Farrel’s compensation was 235 times greater than what it paid its median employee. Last year, ResMed calculated its CEO pay ratio at 180:1. ResMed is the 34th-largest medtech company in the world, according to Medical Design & Outsourcing‘s latest Big 100 ranking by revenue. More on executive pay: How does medtech CEO pay stack up to the rank and file? Cardinal Health CEO becomes one of medtech’s top-paid executives Pay drops for Medtronic CEO and the median employee; bonus plan changes Boston Scientific discloses executive pay, reports employment and diversity gains Ashley McEvoy joins J&J’s top-paid executives Stryker discloses $40M in pay for CEO Kevin Lobo and top execs GE HealthCare’s CEO earned more than GE’s CEO before spinoff Baxter caps cash severance payouts for executives Masimo shareholders vote ‘no’ on executive pay Henry Schein investors push back on executive pay Zimmer Biomet narrowly avoids shareholder rebuke on executive pay
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