Originally Published MX July/August 2005

FINANCE

Medical device company boards of directors are improving governance in this area, but more work needs to be done.

Ted Ginsburg

Acting in response to the Sarbanes-Oxley Act of 2002, stock exchange rule changes, and investor concerns about passive boards of directors who rubber-stamped executive pay requests, medical device company boards of directors have begun to change the way they look at the executive compensation process.¹ This is among the key findings of a recent survey looking at how the boards of directors of selected publicly traded medical device manufacturing companies have modified their governance of executive compensation.