Stryker discloses $40M in pay for CEO Kevin Lobo and top execs
04 Apr 2023
Financial StatementExecutive Change
Stryker (NYSE:SYK) disclosed $39.5 million in pay, perks and other compensation for its five named executive officers, led by Chair, CEO and President Kevin Lobo.
Lobo’s total compensation package was worth nearly $18.6 million last year, up from $16.4 million in 2021 and $13.3 million in 2020. His pay package included a $1.3 million salary, $6.5 million in stock awards, $6.8 million in option awards and a $1.5 million cash bonus.
Lobo also received $458,547 in other compensation, including $316,033 worth of supplemental plan contributions, $108,993 worth of personal corporate aircraft use for himself and his family, and $31,600 in 401(k) contributions.
Stryker’s second-highest-paid executive is VP and CFO Glenn Boehnlein, with nearly $5.9 million in total compensation.
He’s followed by MedSurg and Neurotechnology Group President Andy Pierce at $5.7 million, Orthopaedics and Spine Group President Spencer Stiles at $5.7 million, and Global Quality and Operations Group President Viju Menon at almost $3.7 million.
Kalamazoo, Michigan-based Stryker is the world’s largest orthopedics manufacturer and the seventh-largest medical device company, according to Medical Design & Outsourcing’s most recent Medtech Big 100 list.
That ranking was based on Stryker’s $17.1 billion in revenue for 2021. Sales grew by 8% last year to $18.4 billion.
“Stryker has a history of delivering solid financial results,” the company explained in its proxy filing to investors last week. “Our executive pay programs have played a significant role in our ability to attract, motivate and retain the experienced executive team that has successfully driven our financial results over time.”
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Lobo’s pay package is the largest we’ve seen yet for a Medtech Big 100 CEO this year if you exclude Abbott. Abbott disclosed $21.7 million in total comp for CEO and Chair Robert Ford, but medical devices sales make up only about one-third of the pharma and diagnostics manufacturer’s annual revenue.
For comparison, Medtronic — the world’s largest medical device company, with nearly $31.7 billion in annual revenue for fiscal 2022 — reported $16.8 million in total compensation to Chair and CEO Geoff Martha that year. Watch for new pay figures after Medtronic closes its fiscal year at the end of April.
Stryker reports gains in employment and diversity
In it’s most recent annual report, Stryker said it grew its global headcount by 11% year-over-year from approximately 46,000 at the end of 2021 to 51,000 at the end of 2022. Stryker’s U.S. employment grew 8% year over year, from 25,000 to 27,000.
Stryker said its workforce diversity is also growing. Approximately 37.5% of its employees are women, up from 36.6% at the end of 2021. Of Stryker’s U.S. employees, 27.5% identified as racially or ethnically diverse in 2022, up from 26% the year before.
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Strykers’s CEO pay ratio
Stryker’s proxy filing last week also included its CEO pay ratio. The SEC requires publicly traded companies to calculate a CEO pay ratio showing how much more the chief executive makes than the median employee.
Stryker estimated its median employee wage at $79,194, up from $76,715 in 2021. The latest calculation excluded around 50 employees related to the acquisition of TMJ Solutions and around 30 employees related to the acquisition of Gauss Surgical.
That $79,194 median wage and Lobo’s $18.6 million pay package puts Stryker’s CEO pay at 234 times more than the median employee’s pay.
Related: 9 lessons in crisis management from Stryker CEO Kevin Lobo
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