CEO Pay Watch Medtronic Inc.
Omar Ishrak, chairman, CEO
Total compensation: $6,263,488 for the year ended April 30
Non-equity incentive pay: $2,417,098
Other compensation: $73,741
Value realized on vesting shares: $2,369,687
New stock options: 290,338
Total fiscal 2013 return: 25.2 percent
Note: Ishrak’s total compensation for the year rose 64.6 percent (excluding the value of stock and option awards granted this year and last). The increase was mainly due to increases in his base salary, the incentive award for the year, and $2.4 million from restricted stock that vested during the year.
The company recorded an expense of $2,817,024 for stock awards and $2,099,144 for options awards as part of Ishrak’s long-term equity incentive compensation. That was down considerably from the previous year, when he was granted $21.2 million in stock and option awards, in part to recruit him as Medtronic’s new CEO and to compensate him for pay he forfeited from his previous employer.
At last year’s annual meeting, shareholders gave the company’s say-on-pay proposal an 81.2 percent approval, good but not great support for the program.
Medtronic addressed shareholder questions about components of its long-term equity incentives. After explaining to shareholders that its “performance based restricted stock units’’ serve the same purpose as time-based restricted stock units, most shareholders supported the plan.
Based on shareholder feedback, “the compensation committee believes that shareholders generally support our compensation policies and practices,” the proxy statement said.