Who: Omar Ishrak, executive chairman, Medtronic PLC
CEO Pay Watch: Medtronic's Omar Ishrak made $10.8 million last fiscal year
Omar, in his last year as CEO, made less money than the prior year. He is now executive chairman.
August 20, 2020 at 3:45AM
Total compensation: $10,791,756 for the year ended April 30, 2020
Salary: $1,741,556
Nonequity incentive pay: $3,382,200
Other compensation: $79,519
Exercised stock options: $0
Value realized on vesting shares: $5,588,481
New stock options: 301,440
CEO Pay ratio: 238-1
Median employee pay: $62,286
Total fiscal 2020 shareholder return: 12.3%
Note: Ishrak was CEO and chairman of Medtronic during this time period. He stepped down as CEO and became executive chairman.
Ishrak's realized compensation in his last year as CEO was down from $13.9 million in the prior year. Ishrak's $3.4 million cash incentive pay for the year was the lowest since the 2013 fiscal year as the company's 2020 goals for revenue, earnings and cash flow came in under target.
Ishrak and the other named executives did not earn any award for the annual portion and smaller cash awards for a portion based on a three-year performance period.
While top executives did not earn any annual bonus, Medtronic's board compensation committee did make changes, allowing the top leaders more long-term equity awards as an incentive to lead through the pandemic.
The board committee made other adjustments so more than 63,000 employees who are eligible for the annual awards would receive something. The compensation committee instead made annual awards based on performance in the first three quarters of the year resulting in a payment at 82.8% of the target for the year.
The most senior leaders didn't get that adjustment and instead received a "special, one-time grant of unvested stock options in August 2020 to align pay with the performance delivered to our stockholders as our business recovers from the pandemic."
Ishrak's options awarded under that plan had a grant date value of $2,530,000 and a 10-year term. That amount and those of the other senior leaders will be reflected in next year's summary compensation table of the proxy.
In January, Ishrak was also named chairman of California-based Intel Corp. after joining that company's board in 2017.
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