Summary
Boston Scientific Corporation (BSX) filed an 8-K on July 7, 2006, to report an amendment to its 2006 Performance Incentive Plan, effective July 1, 2006. This amendment modifies how performance is measured for salaried personnel, including executive officers, under the Company's annual cash incentive program. The key change is the inclusion of quality metrics alongside the existing sales and profitability goals (revenue and net income) for measuring corporate performance on a quarterly basis. Individual executive officer performance will continue to be assessed based on the strategic functions they oversee. This update reflects an evolving approach to executive compensation, aiming to align incentives with broader corporate objectives that now explicitly include quality.
Key Highlights
- 1Amendment to the 2006 Performance Incentive Plan effective July 1, 2006.
- 2The plan provides annual cash incentive opportunities for salaried personnel, including executive officers.
- 3Performance measurement now includes quality metrics in addition to sales and profitability goals.
- 4Corporate performance will be measured quarterly against revenue, net income, and quality objectives.
- 5Individual executive officer performance is measured by their responsible strategic functions.
- 6This filing is an 8-K reporting a material definitive agreement concerning the incentive plan.
- 7The amended plan is attached as an exhibit to the filing.