Summary
Boston Scientific Corporation (BSX) filed an 8-K report on July 27, 2006, detailing significant changes to its non-employee director compensation and the appointment of a new executive officer. The company modified its director compensation plan, shifting away from annual stock option grants to an increased annual grant of restricted stock. This change aims to align director incentives more directly with long-term shareholder value. Additionally, Dr. Donald S. Baim was appointed Senior Vice President and Chief Medical and Scientific Officer, with a compensation package that includes a substantial base salary, signing bonus, performance incentives, stock options, and deferred stock units, reflecting his critical role in the company's scientific and medical strategy.
Key Highlights
- 1Non-employee director compensation plan revised: Annual stock option grants eliminated, replaced by increased restricted stock grants.
- 2Annual retainer for non-employee directors remains $60,000; Chairman's retainer remains $150,000.
- 3Chairman of the Board to receive an additional annual restricted stock grant.
- 4Audit Committee Chairman's cash retainer increased to $20,000, other Committee Chairs to $10,000.
- 5Dr. Donald S. Baim appointed Senior Vice President and Chief Medical and Scientific Officer.
- 6Dr. Baim receives a compensation package including $100,000 signing bonus, $500,000 annual salary, guaranteed minimum incentive payment, stock options, and deferred stock units.
- 7Jim Gilbert promoted to Group President, Cardiovascular, with a salary increase to $400,000 and new long-term incentive awards.