8-KLeadership ChangesOther EventsExhibits & Filings

BOSTON SCIENTIFIC CORP 8-K Report, Executive Changes (Oct 24, 2013)

Filed October 24, 2013For Securities:BSX

Summary

Boston Scientific Corporation (BSX) announced a significant executive transition concerning its Chief Financial Officer role. Jeffrey D. Capello will be stepping down as Executive Vice President and CFO effective December 31, 2013. He will transition to a Senior Advisor role until May 15, 2014, during which he will receive his current base salary and a prorated portion of it through December 31, 2014. Mr. Capello is also eligible for his 2013 bonus, retention of certain performance share units under existing programs, and reimbursement for legal and business expenses. Concurrently, Daniel J. Brennan has been appointed as the new Executive Vice President and CFO, effective January 1, 2014. Mr. Brennan, a long-time employee with extensive experience in finance and investor relations within the company, will receive a base salary of $450,000, along with eligibility for annual bonuses, long-term incentive equity awards valued at $1.5 million, and benefits under the company's Executive Retirement Plan. This leadership change indicates a planned succession within a key financial role.

Key Highlights

  • 1Jeffrey D. Capello is transitioning from CFO to Senior Advisor role, effective December 31, 2013.
  • 2Mr. Capello will remain with the company as a Senior Advisor through May 15, 2014.
  • 3Mr. Capello's compensation package includes continued base salary, a prorated salary through December 31, 2014, and a 2013 bonus.
  • 4Mr. Capello will retain eligibility for certain performance share units from 2012 and 2013 programs.
  • 5Daniel J. Brennan is appointed as the new Executive Vice President and CFO, effective January 1, 2014.
  • 6Mr. Brennan's compensation includes a $450,000 base salary, annual bonus eligibility, and a $1.5 million equity award.
  • 7Mr. Brennan will participate in the company's Executive Retirement Plan and Change in Control Agreement.

Frequently Asked Questions

Boston Scientific is undergoing a CFO transition. Jeffrey D. Capello is stepping down from his role as Executive Vice President and CFO on December 31, 2013, and will serve as a Senior Advisor until May 15, 2014. Daniel J. Brennan will succeed him as the new CFO starting January 1, 2014.

Mr. Capello will receive his current base salary as a Senior Advisor, a prorated base salary through December 31, 2014, and his 2013 bonus. He will also retain eligibility for certain performance share units and receive reimbursements for legal and business expenses.

Mr. Brennan will have an annual base salary of $450,000, be eligible for the company's Annual Bonus Plan, and receive a significant long-term incentive equity award valued at $1.5 million. He will also be eligible for the Executive Retirement Plan and standard Change in Control provisions.

The filing itself focuses on the executive transition and compensation details. The appointment of Daniel J. Brennan, a long-standing employee with considerable internal experience, suggests a planned succession rather than a radical shift in strategy. Investors should look to future earnings reports and strategic communications for insights into any strategic changes.