8-KLeadership Changes

STRYKER CORP 8-K Report, Executive Changes (Feb 12, 2009)

Filed February 12, 2009For Securities:SYK

Summary

This Form 8-K filing from Stryker Corporation (SYK) on February 12, 2009, primarily details compensation actions taken by the Compensation Committee and approved by the Board of Directors on February 10, 2009. The key event is the grant of stock options to CEO Stephen P. MacMillan and the award of restricted stock units (RSUs) to nine members of senior management. These actions reflect the company's strategy for executive compensation, aiming to incentivize and retain key talent through equity-based awards. For investors, these disclosures provide insight into the company's executive compensation philosophy and its commitment to aligning management interests with shareholder value. The specifics of the stock options granted to the CEO, including the number of shares, exercise price, and vesting schedule, along with the RSU awards to other senior executives, can be analyzed to understand potential future share dilution and the performance incentives tied to these grants. While the report doesn't contain financial performance data, it offers a glimpse into how the company manages its leadership team's compensation.

Key Highlights

  • 1Grant of a stock option for 150,000 shares of Common Stock to CEO Stephen P. MacMillan.
  • 2The CEO's stock option has an exercise price of $42.00 per share, reflecting the closing price on February 9, 2009.
  • 3The CEO's stock option vests over five years, with 30,000 shares vesting annually.
  • 4Award of an aggregate of 99,000 restricted stock units (RSUs) to nine senior management members.
  • 5Specific RSU awards include 15,000 units each to VP of Finance Curt R. Hartman and Group President, International Andrew Fox-Smith.
  • 6RSUs vest over a period of approximately two to three years, with portions vesting on February 10, 2010, February 10, 2011, and the remainder on February 10, 2012.
  • 7Vesting of RSUs can be accelerated due to disability or death but ceases upon termination of employment or significant role reduction.

Frequently Asked Questions

This 8-K filing is primarily to disclose compensation-related actions, specifically the grant of stock options to the CEO and restricted stock units to other senior management members, as approved by Stryker's Compensation Committee and Board of Directors.

The CEO was granted an option to purchase 150,000 shares of common stock at an exercise price of $42.00 per share. The option has a ten-year term and vests in installments of 30,000 shares on each of the first five anniversaries of the grant date.

An aggregate of 99,000 RSUs were awarded to nine members of senior management. Notable recipients include Curt R. Hartman and Andrew Fox-Smith, each receiving 15,000 RSUs. These RSUs vest generally in stages: 16.67% on February 10, 2010, 33.33% on February 10, 2011, and the remaining 50% on February 10, 2012. Vesting may be accelerated upon disability or death.

No, according to the filing, Stephen P. MacMillan did not receive a restricted stock unit award in this particular grant.