Summary
Boston Scientific Corporation (BSX) filed an 8-K on January 13, 2011, primarily to disclose an amendment to its 2011 Performance Incentive Plan (2011 PIP). The key change alters the eligibility requirement for receiving payments under the plan. Previously, employees needed to be employed through December 31, 2011. The amendment now links eligibility to the actual date payments are made, rather than a fixed end-of-year employment date. This change is significant as it could impact the compensation structure and employee retention incentives for the performance period spanning January 1, 2011, to December 31, 2011. Payment timelines for the 2011 PIP have also been clarified. Payments within the United States are expected by March 15, 2012, while international payments will be processed as soon as administratively feasible following December 31, 2011. Investors should note that the 2011 PIP is effective for the entire 2011 calendar year and the amendment aims to provide flexibility while still incentivizing continued employment through the payout period.
Key Highlights
- 1Amendment to the 2011 Performance Incentive Plan (2011 PIP) approved by the Board of Directors.
- 2Eligibility for 2011 PIP payments changed from requiring employment through December 31, 2011, to requiring employment on the payment date.
- 3The 2011 PIP covers the performance period from January 1, 2011, to December 31, 2011.
- 4Payments under the 2011 PIP for US employees are expected by March 15, 2012.
- 5International payments under the 2011 PIP will be made as soon as administratively possible after December 31, 2011.
- 6The amended 2011 PIP document is filed as Exhibit 10.1 to the 8-K.