Summary
Boston Scientific Corporation (BSX) has filed an 8-K report detailing the approval of its 2026 Annual Bonus Plan and two new Performance Share Programs: the 2026 Relative Total Shareholder Return Performance Share Program (2026 rTSR PSP) and the 2026 Organic Net Sales Growth Performance Share Program (2026 Organic Net Sales PSP). These plans, effective for the 2026 performance year and subsequent periods, are designed to align executive compensation with company performance and shareholder interests. The annual bonus plan focuses on global sales, adjusted earnings per share, operating income, and sustainability goals, with potential payouts ranging from 0% to 225% of target bonuses based on company and individual performance. The performance share programs are designed as long-term incentives. The 2026 rTSR PSP will reward executives based on Boston Scientific's Total Shareholder Return relative to the S&P 500 Healthcare Index over a three-year period (2026-2028), with awards ranging from 0% to 200% of target. The 2026 Organic Net Sales PSP will incentivize executives based on the company's organic net sales growth over the same three-year period, also with award potential from 0% to 200% of target. Both performance share programs are subject to vesting criteria and clawback provisions, aligning with regulatory requirements.
Key Highlights
- 1Boston Scientific Corporation approved its 2026 Annual Bonus Plan for the performance year January 1, 2026, through December 31, 2026.
- 2The 2026 Annual Bonus Plan ties cash incentives to company-wide performance metrics including global sales, adjusted earnings per share, operating income, and corporate sustainability goals.
- 3Individual bonus payouts under the 2026 Annual Bonus Plan can range from 0% to 225% of the target bonus, influenced by company performance (0%-150% distribution percentage) and individual performance (0%-150% modifier).
- 4Two new performance share programs were approved: the 2026 Relative Total Shareholder Return Performance Share Program (2026 rTSR PSP) and the 2026 Organic Net Sales Growth Performance Share Program (2026 Organic Net Sales PSP).
- 5The 2026 rTSR PSP will measure executive compensation against the Total Shareholder Return of the S&P 500 Healthcare Index over a three-year period (2026-2028), with awards ranging from 0% to 200% of target.
- 6The 2026 Organic Net Sales PSP will reward executives based on the company's organic net sales growth over the 2026-2028 performance period, with awards ranging from 0% to 200% of target.
- 7All executive awards under these new plans are subject to the Company's discretionary recoupment policy and Dodd-Frank Clawback Policy, including provisions for misconduct or gross dereliction of duty.