2013 pay: $8.4 million
2012 pay: $9.2 million
Kevin Lobo faced more than a few obstacles during his first fiscal year as Stryker's ($SYK) CEO. After assuming the top spot from Stephen MacMillan in fall 2012, Lobo pledged to move the device outfit out of its sales funk and into emerging markets and innovation.
In January 2013, Stryker began its M&A push by acquiring trauma and spinal devicemaker Trauson Holdings for $764 million in cash--a "critical step" toward expanding the company's footprint in China, Lobo said at the time of the deal. The company also purchased robot-assisted surgery outfit Mako Surgical in September 2013 for a whopping $1.7 billion, a move that confused analysts and investors. The final per-share price tag on Mako was an 86% premium to its predeal value, and Stryker's stock price slipped more than 4% the week after the company finalized the transaction. Still, Lobo insisted that the Mako deal would pay off down the line, calling it a "long-term strategic bet" in the company's future.
For the most part, Lobo's strategic efforts have generated positive results. Stryker booked $2.5 billion in net sales during Q4 2013--a 4.2% increase over the $2.3 billion in sales of the same period last year. But net earnings for the year dropped to $1 billion, down 22.5% from 2012. The company attributed the low numbers to charges from its ongoing Rejuvenate and ABG II metal hip recalls, as well as its Mako and Trauson Holdings acquisitions.
Lobo's base salary came in at $1 million, with $3 million in stock awards, $2.8 million in options, and $1.3 million in nonequity incentives. -- Emily Wasserman (email | Twitter)
- read Stryker's proxy statement
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