Geoff Martha, chairman and CEO of Medtronic, saw his compensation package increase 28% when the company's shares had a negative 18.5% total return for the fiscal year. Like other manufacturers, supply chain issues created issues for the company; so did lingering COVID-19 outbreaks that further delayed elective surgeries involving Medtronic products.
- Total compensation: $7,543,611 for the year ended April 29
- Salary: $1,345,192
- Non-equity incentive pay: $2,553,466
- Other compensation: $450,497
- Exercised stock options: $1,625,301
- Value realized from vesting shares: $1,569,155
- New stock options: 162,731
- Median employee pay: $78,244
- CEO pay ratio: 215 to 1
- Total fiscal 2022 shareholder return: -18.5%
Note: Martha's compensation increased 28% from the previous fiscal year, when he realized $5.9 million. His base salary increased 22.7% to $1.35 million, moving it closer to those of CEOs at Medtronic's peer companies.
More than half of Martha's compensation came from previously issues long-term equity awards. Martha exercised 23,081 previously issued stock options in the last year worth $1.6 million, and restricted stock that vested during the year added $1.6 million to his total compensation.
His annual cash incentive bonus decreased 6.8%.
The company's board, with input from shareholders, changed Medtronic's incentive plan. It added a market share metric meant to address Medtronic's ability to keep pace with competitors and also added team and individual performance scorecards for some executives.
Medtronic did meet its goal for the new market share metric, but the company's revenue, earnings and cash flow performance all fell below annual targets as Medtronic dealt with industry wide supply chain challenges and a lack of new product approvals. And the pandemic continued to affect Medtronic's business as full hospitals limited elective procedures for many implantable medical devices.
The total payout was 73.2% of the target for the incentive plan, with Martha receiving $1.4 million.
Medtronic's performance over the previous three fiscal years was at less than 50% of the target for the company's long-term performance plan. Martha earned $1.1 million from that pay category.
