Why is James R. Tobin stepping down as CEO?

The filing states that James R. Tobin's resignation as President and Chief Executive Officer was accepted by the Board of Directors. While the exact reasons are not detailed, it is presented as a planned transition, with Mr. Tobin moving into a Senior Advisor role until November 30, 2009.

What is J. Raymond Elliott's background?

J. Raymond Elliott is a seasoned executive with ten years of experience leading Zimmer Holdings Inc. as its Chairman, President, and CEO. He retired from Zimmer in November 2007 and previously served on Boston Scientific's Board of Directors from 2007 until early 2009.

What are the key components of J. Raymond Elliott's compensation package?

Mr. Elliott's compensation includes a $1.5 million sign-on bonus, an annual base salary of $1.2 million, significant stock options (3.4 million), deferred stock units (1 million), and performance-based deferred stock units (1.25 million) that vest upon achieving specific stock price targets. He also receives relocation assistance and a company agreement to purchase his current residence.

How will James R. Tobin be compensated during his transition and upon departure?

Mr. Tobin will continue to receive his current base salary of $994,000 until November 30, 2009. He is eligible for a prorated 2009 bonus, retirement benefits calculated based on 2.5 months of salary per year of service, and a career service award equal to 250% of his base salary less the bonus. His equity awards will also have their vesting accelerated.

BSX 8-K: Leadership Changes

Summary

Boston Scientific Corporation (BSX) has announced significant changes in its executive leadership. Effective July 13, 2009, James R. Tobin will resign as President and Chief Executive Officer, transitioning to a Senior Advisor role until November 30, 2009. Mr. Tobin will receive continued salary, a prorated bonus, retirement benefits based on his tenure, and a significant career service award, along with accelerated vesting of certain equity awards and continued use of corporate aircraft during his advisory period. The company is also reimbursing legal and financial advisor fees related to his departure. Concurrently, J. Raymond Elliott has been appointed as the new President and Chief Executive Officer, also effective July 13, 2009. Mr. Elliott, formerly CEO of Zimmer Holdings Inc., brings extensive leadership experience. His compensation package includes a substantial sign-on bonus, a new base salary of $1.2 million, significant equity awards (stock options and deferred stock units with performance-based vesting tied to stock price targets), relocation assistance, and a unique arrangement for the company to purchase his current residence. These executive changes and associated compensation arrangements are expected to be reflected in the company's second quarter 2009 financial results.

Key Highlights

1James R. Tobin resigns as President and CEO, effective July 13, 2009, moving to a Senior Advisor role until November 30, 2009.
2J. Raymond Elliott appointed as the new President and CEO, effective July 13, 2009, with extensive prior CEO experience.
3Mr. Tobin will receive continued base salary, a prorated 2009 bonus, retirement benefits, and a career service award equating to 250% of his base salary less the bonus.
4Mr. Tobin's deferred stock units and stock options will have their vesting accelerated.
5Mr. Elliott receives a $1.5 million sign-on bonus and a new annual base salary of $1.2 million.
6Mr. Elliott is granted substantial equity awards, including 3.4 million stock options and 1 million deferred stock units, plus 1.25 million performance-based deferred stock units tied to stock price targets up to $30.
7The company will purchase Mr. Elliott's primary residence in Indiana for its original cost plus improvements, not exceeding $1.5 million.

BOSTON SCIENTIFIC CORP 8-K Report, Executive Changes (Jun 25, 2009)

Summary

Key Highlights

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