2012 pay: $10.3 million
2013 pay: $11.2 million
Covidien's ($COV) José Almeida led a huge transition after taking the company's top post in 2011. The Irish company went through a year of changes in 2013, when it dropped its pharma unit in June, parsing it off as the standalone Mallinckrodt ($MNK), and acquired three Israeli devicemakers--Oridion, PolyTouch and superDimension.
The rejiggering was an effort to focus its strategy on medical device R&D, but it wasn't without repercussions. Without its $1.4 million projected pharma sales, Covidien's profits slid in its fiscal third quarter in 2013 by $396 million, a 12.6% drop from the same period last year. Net income continued to drop at the end of the fourth quarter to $372 million, down from $461 million over the same period in 2012. Despite the overall decline in profits, the company's medical device sales had a slight boost in sales, to $10.2 billion at the end of 2014 compared to $9.8 billon in the same period the previous year.
Overall, 2013 was largely a year of flat sales for Covidien, and as a cost-saving measure, the company cut jobs and closed plants in a September restructuring to free up as much as $300 million.
In September, Covidien lowered its growth projects to only 2% to 5% growth-- 30% slower than its 2013 projection. But Almeida has said he remains committed to spending more on R&D in the long run, as Covidien looks to develop new products like renal denervation devices and drug-eluting balloons.
In 2013, Almeida cashed out with $1.3 million in base salary, $5.1 million in stock awards, $2.8 million in options, $1.6 million in nonequity incentives and $217,698 in other pay. The grand total came to $11.1 million, up 7.8% from $10.3 million in 2012. -- Emily Mullin (email | Twitter)
- here's Covidien's proxy statement
A pharma-free Covidien achieves moderate medical device growth
Covidien watches profits slide after kicking drugs