What is the total estimated financial cost of Mr. Colen's retirement package?

The total direct financial outflows for Mr. Colen's retirement include $1,358,750 under the Executive Retirement Plan, $600,000 as a lump sum salary payment, approximately $40,000 in relocation expenses (including tax gross-up), and up to $25,000 for outplacement services. The value of accelerated stock options and deferred stock units is not explicitly quantified but represents a dilution or expense upon vesting.

What is the impact of Mr. Colen's retirement on Boston Scientific's stock?

This 8-K filing solely announces the retirement of a senior executive and details his separation package. It does not contain any new financial guidance or operational updates that would directly impact the company's stock price. Investors will likely monitor the company's ability to maintain technological leadership and innovation without Mr. Colen.

Are there any non-compete or non-solicitation clauses in Mr. Colen's separation agreement?

Yes, the filing states that Mr. Colen's Agreement contains customary confidentiality, nonsolicitation, noncompetition, and nondisparagement provisions. The specific terms and duration are detailed in the Form of Agreement and General Release of All Claims (Exhibit 10.1).

Will the accelerated vesting of stock options affect the company's earnings per share?

The accelerated vesting of stock options and deferred stock units will be recognized as compensation expense. While the exact impact on EPS depends on the timing and valuation of these awards, it will contribute to the company's overall compensation expenses in the reporting periods when they vest.

BSX 8-K: Leadership Changes

Summary

Boston Scientific Corporation (BSX) has filed an 8-K report detailing the retirement of Fredericus A. Colen, Executive Vice President and Chief Technology Officer, effective June 30, 2010. Mr. Colen's departure is for family reasons and will trigger various severance benefits under company plans. These benefits include a lump sum payment equivalent to his annual salary, accelerated vesting of unvested stock options and deferred stock units, and prorated bonus eligibility. The company is also covering relocation expenses and outplacement services. This transition represents a notable change in senior leadership, specifically within the technology officer role. While the specific financial impact on the company of these severance packages is detailed, the primary focus for investors will be on the leadership continuity and any potential impact on the company's innovation and technology strategy moving forward. The terms of Mr. Colen's departure agreement, including customary restrictive covenants, have been disclosed.

Key Highlights

1Fredericus A. Colen, EVP and Chief Technology Officer, is retiring effective June 30, 2010.
2Mr. Colen's retirement is due to family reasons.
3Severance package includes 2.5 months' salary per year of service, totaling $1,358,750, under the Executive Retirement Plan.
4Unvested stock options and deferred stock units will vest upon retirement due to qualification under Long-Term Incentive Plans.
5Mr. Colen will receive a lump sum payment of $600,000 (annual base salary) and is eligible for a prorated 2010 bonus of up to 70% of his base salary.
6Company will reimburse relocation expenses up to approximately $40,000 (including tax gross-up) and moving expenses for personal goods.
7Outplacement services not to exceed $25,000 will be provided.

BOSTON SCIENTIFIC CORP 8-K Report, Executive Changes (Apr 26, 2010)

Summary

Key Highlights

Frequently Asked Questions