2012 pay: $9.2 million
2011 pay: $2.3 million
Stryker ($SYK) experienced a CEO transition in 2012 that bordered on something you'd see in a soap opera. The company announced abruptly in February 2012 that CEO Stephen MacMillan was leaving. And The Wall Street Journal reported that he may have been ousted after having a romantic relationship with a former employee. Chief Financial Officer and Vice President Curt Hartman served as interim CEO until Kevin Lobo took the job 7 months later, promoted from his job as president of Stryker Orthopedics.
The rest of the year wasn't all roses, either. The company issued a failure warning and subsequent recall for some of its all-metal hips and dealt with a growing number of hip-related implant lawsuits. And then there was a global recall of its Neptune chest fluid pump device. Additionally, Stryker commenced with layoffs in response to the 2.3% device tax that kicked in Jan. 1, 2013, as part of the Affordable Care Act.
Challenges aside, Lobo hit the ground running. In an early speech, he promised that Stryker continued to aggressively change how it approaches innovation. And under Lobo's leadership, Stryker, like many of its peers, made a big jump into China, purchasing trauma and spinal devicemaker Trauson Holdings in early January 2013 for $764 million in cash. Lobo's 2012 pay included a $585,417 base salary, a $79,971 bonus, more than $5.9 million in stock and nearly $1.8 million in option awards. Not bad, but MacMillan's pay, despite his February departure, surpassed $11.5 million in total compensation.
- read Stryker's proxy statement (PDF)
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