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What Programs Are Medical Device Companies Sponsoring?

July 1, 2004

1 Min Read
What Programs Are Medical Device Companies Sponsoring?

Originally Published MX July/August 2004

BUSINESS PLANNING & TECHNOLOGY DEVELOPMENT

A study conducted by Top Five Data Services Inc. (Fremont, CA) indicates that medical device companies sponsor many of the executive compensation programs that are currently being examined by the IRS. Top Five looked at executive compensation programs maintained by 20 public medical device companies and determined the following (see Table).

Stock-Based Compensation. All of the companies use some type of equity program for their executives, with 90% of the group using nonqualified stock options and 45% using restricted stock (some companies offered both programs). The only companies in the survey that do not use nonqualified stock options are subsidiaries of foreign corporations.

Nonqualified Deferred Compensation. These types of programs are popular with large medtech firms. Of the large companies surveyed, 90% maintain at least one nonqualified deferred compensation program for their executives; 70% maintain two or more plans. However, only 20% of small companies offer these types of programs for their executives.

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