Who is the new Chief Accounting Officer and what is their background?

Jeffrey D. Capello has been appointed as the new Senior Vice President, Chief Accounting Officer, and Corporate Controller, effective June 16, 2008. He has a strong financial background, having served in various roles at PerkinElmer for seven years, most recently as Senior Vice President and Chief Financial Officer. He also has prior experience as a Corporate Controller and Treasurer and was an audit partner at PriceWaterhouseCoopers.

What is the total expected compensation for Mr. Capello in his first year?

In his first year, Mr. Capello is expected to receive a base salary of $490,000, a $500,000 sign-on bonus, and a target incentive of 65% of his base salary (approximately $318,500) under the Performance Incentive Plan. He will also receive an equity incentive valued at $2,750,000 on the grant date. Additionally, he will receive an annual executive allowance of $15,000, prorated for 2008.

What are the terms of the equity incentive award?

Mr. Capello will receive an equity incentive valued at $2,750,000 on the grant date, which he can elect as stock options, Deferred Stock Units (DSUs), or a combination. If chosen as stock options, they vest in installments of 25%, 50%, 12.5%, and 12.5% starting on the first anniversary. If chosen as DSUs, they are issued in increments of 20%, 50%, 10%, 10%, and 10% starting on the first anniversary. In case of retirement, disability, death, or change in control, any unvested options and remaining DSUs will be issued.

Are there any provisions for Mr. Capello leaving the company early?

Yes, the sign-on bonus of $500,000 includes a provision where Mr. Capello must repay $250,000 if he voluntarily leaves the company before his first anniversary. Additionally, if he is involuntarily terminated without cause within the first two years of employment, he will receive a special payment equivalent to his then-current annual salary plus target incentive bonus.

BSX 8-K: Leadership Changes

Summary

Boston Scientific Corporation (BSX) has announced the appointment of Jeffrey D. Capello as its new Senior Vice President, Chief Accounting Officer, and Corporate Controller, effective June 16, 2008. Mr. Capello brings extensive financial experience from his seven-year tenure at PerkinElmer, where he most recently served as Senior Vice President and Chief Financial Officer. His background also includes experience as a Corporate Controller and Treasurer, as well as an audit partner at PriceWaterhouseCoopers. This appointment signals a significant addition to the company's financial leadership team. Mr. Capello's compensation package includes a base salary, a substantial sign-on bonus with clawback provisions, participation in a performance incentive plan, and a significant equity incentive valued at $2,750,000. Investors should note the terms of the equity grant, which can be in the form of stock options or Deferred Stock Units with staggered vesting schedules, and provisions for accelerated vesting in certain events such as retirement, disability, death, or change in control. Furthermore, the company has outlined severance provisions in case of involuntary termination and a potential recommendation for promotion to the Executive Committee in June 2009, reflecting confidence in Mr. Capello's capabilities.

Key Highlights

1Appointment of Jeffrey D. Capello as Senior Vice President, Chief Accounting Officer, and Corporate Controller, effective June 16, 2008.
2Mr. Capello brings significant financial leadership experience from PerkinElmer, including a recent role as SVP and CFO.
3Total compensation package includes a base salary of $490,000 and a $500,000 sign-on bonus.
4A substantial equity incentive valued at $2,750,000, offered as stock options or Deferred Stock Units with multi-year vesting.
5Sign-on bonus has a clawback provision requiring repayment of $250,000 if Mr. Capello leaves voluntarily within the first year.
6Severance package outlined for involuntary termination without cause within the first two years of employment.
7Potential promotion to the Executive Committee in June 2009, subject to CEO/CFO assessment and Board approval.

BOSTON SCIENTIFIC CORP 8-K Report, Executive Changes (May 20, 2008)

Summary

Key Highlights

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