Boston Scientific is planning on awarding its next president and CEO a pay package valued at more than $20 million, according to a recent SEC filing. The company has chosen Michael Mahoney (pictured on the right), an executive at J&J as its new leader. He will receive a $1.5-million signing bonus, a base salary worth $900,000, stock benefits valued at $16.7 million, as well as a number of other benefits.

September 23, 2011

2 Min Read
Boston Scientific to Compensate New Leader to the Tune of $20 Million

Michael-Mahoney.jpgBoston Scientific is planning on awarding its next president and CEO a pay package valued at more than $20 million, according to a recent SEC filing. The company has chosen Michael Mahoney (pictured on the right), an executive at J&J as its new leader. He will receive a $1.5-million signing bonus, a base salary worth $900,000, stock benefits valued at $16.7 million, as well as a number of other benefits. Boston Scientific announced the hire of Mahoney a few weeks ago. 

Although that's an impressive amount, it's actually considerably less than what the company offered current CEO Ray Elliott in 2009; he received a pay package worth $33.5 million for his first year at Boston Scienfitic.

By contrast, Medtronic's new CEO Omar Ishrak will be paid a base salary of $1.35 million and a signing bonus worth $650,000. He also will be offered performance-based incentives on top of that amount.

As is the case at Boston Scientific, Ishrak's predecessor William Hawkins was also paid more than he is; he was paid $9.6 million in 2010, although his base salary was slightly less at $1.1 million.

It seems that the two companies have looked at the current economic environment and decided to pay their topic executives handsomely but more conservatively than in the past.

In general, many companies recently have faced increasing criticism for their executive compensation schemes. While high pay can often be correlated to high performance, in many cases, big companies have chosen to reward executives handsomely with big bonuses as their firms flounder.

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Brian Buntz

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