Summary
Stryker Corporation (SYK) filed an 8-K on December 4, 2008, reporting on executive management agreements for two key officers transitioning out of their primary roles. Stephen Si Johnson, previously Group President of MedSurg, will serve as an Advisor to the CEO through at least December 2009, receiving an annual salary of $400,000 in 2009. Dean Bergy, the CFO, will transition to an advisory role to the new CFO from April 2009 through March 2011, with an annual salary of $450,000. Both executives will continue to receive certain benefits but will not be eligible for bonuses after 2008 or further stock option grants.
Key Highlights
- 1Stephen Si Johnson appointed Advisor to the CEO until at least December 2009, with a $400,000 annual salary for 2009.
- 2Dean Bergy appointed Advisor to the new CFO from April 2009 to March 2011, with a $450,000 annual salary.
- 3Both executives retain eligibility for health, disability, life insurance, 401(k), and supplemental retirement plans.
- 4Neither Johnson nor Bergy will be eligible for bonuses after their 2008 bonus payments.
- 5Neither executive will receive additional stock option grants.
- 6These arrangements are part of executive transitions previously reported by the company.
Frequently Asked Questions
This 8-K filing details executive management agreements for two key officers, Stephen Si Johnson and Dean Bergy, as they transition from their principal roles into advisory positions. It outlines their compensation and benefits during these transitional periods.
The company will incur salaries for Mr. Johnson ($400,000 in 2009, potentially $200,000 in 2010) and Mr. Bergy ($450,000 annually from April 2009 to March 2011). However, the company will avoid additional bonus payouts and stock option grants to these executives, which could represent a cost saving.
No, under these new agreements, neither Stephen Si Johnson nor Dean Bergy will be eligible to receive any bonus after their 2008 bonus is paid, nor will they receive any additional stock option grants.
Both executives will continue to be entitled to benefits under the Company's health, disability, and life insurance programs, and will participate in the Company's 401(k) plan and non-qualified supplemental retirement plan.