Summary
Boston Scientific Corporation (BSX) filed an 8-K on January 8, 2007, reporting on several key updates effective January 1, 2007. The company adopted its 2007 Performance Incentive Plan, which continues to base cash incentives on quarterly performance against sales, profitability, and quality goals, but now also incorporates full-year results and individual executive responsibilities for strategic functions. In addition to changes in executive compensation, the company amended its 401(k) Retirement Savings Plan to include a Roth contribution option and automatic enrollment for new employees. Furthermore, Boston Scientific adjusted its 2006 Global Employee Stock Ownership Plan by reducing the employee discount for purchasing company stock from 15% to 10%. These updates reflect adjustments to the company's employee compensation and benefit programs at the start of the new fiscal year.
Key Highlights
- 1Adoption of the 2007 Performance Incentive Plan for salaried personnel, including executive officers, effective January 1, 2007.
- 2The 2007 Performance Incentive Plan now includes full-year results alongside quarterly goals for corporate performance measurement.
- 3Individual executive officer incentives will be measured by the performance of their respective strategic functions.
- 4Amendment to the 401(k) Retirement Savings Plan to add a Roth (after-tax) contribution feature for employees.
- 5Introduction of an automatic enrollment feature for new employees in the 401(k) plan.
- 6Reduction in the employee discount for purchasing Boston Scientific stock through the 2006 Global Employee Stock Ownership Plan from 15% to 10%, effective January 1, 2007.