8-KLeadership ChangesExhibits & Filings

STRYKER CORP 8-K Report, Executive Changes (Oct 3, 2012)

Filed October 3, 2012For Securities:SYK

Summary

Stryker Corporation (SYK) announced a significant leadership transition with the appointment of Kevin A. Lobo as the new President and Chief Executive Officer, effective immediately on October 1, 2012. Mr. Lobo, who joined Stryker in April 2011 and most recently served as Group President of Orthopaedics, brings extensive experience from prior executive roles at Johnson & Johnson. His appointment to CEO signifies a strategic move to leverage his broad operational and financial expertise for the company's future growth. The filing also details Mr. Lobo's comprehensive compensation package, including base salary, bonus targets, stock options, restricted stock units, and performance stock units, aligning his incentives with the company's performance and long-term value creation.

Key Highlights

  • 1Kevin A. Lobo appointed President and Chief Executive Officer effective October 1, 2012.
  • 2Kevin A. Lobo elected to the Board of Directors, filling a newly created position.
  • 3Mr. Lobo's extensive background includes executive leadership at Johnson & Johnson's Ethicon Endo-Surgery.
  • 4Mr. Lobo's compensation includes a base salary of $1,000,000, a targeted annual bonus of 130% of base salary, stock options, restricted stock units, and performance stock units.
  • 5Curt R. Hartman resigned as Vice President and Chief Financial Officer effective September 30, 2012, and will serve as an Advisor to the CEO for transition.
  • 6Dean H. Bergy appointed Interim Chief Financial Officer effective October 1, 2012, with a base salary of $517,500 and a prorated bonus.
  • 7Dean H. Bergy will receive stock options and restricted stock units valued at $256,500 on November 1, 2012.

Frequently Asked Questions

Kevin A. Lobo has been appointed as the new President and Chief Executive Officer of Stryker, effective October 1, 2012. Mr. Lobo, aged 47, joined Stryker in April 2011 and has held significant roles including Group President of the Neurotechnology and Spine Group and Group President of Orthopaedics. Prior to Stryker, he held senior leadership positions at Johnson & Johnson, including President of Ethicon Endo-Surgery, and has a 25-year career in general management and finance.

Mr. Lobo's compensation package includes an annual base salary of $1,000,000, with annual reviews for increases. He is targeted for an annual bonus of 130% of his base salary, with the 2012 bonus being a blend of his prior and new CEO roles. He was also granted stock options to purchase 107,795 shares at $55.66 per share, restricted stock units covering 53,899 shares vesting in October 2015, and performance stock units with a target award of 35,932 shares based on three-year adjusted diluted net earnings per share and sales growth.

Curt R. Hartman, who served as Interim Chief Executive Officer and Vice President and Chief Financial Officer, has resigned from his CFO role effective September 30, 2012. He will remain with the company as an Advisor to the CEO to ensure a smooth leadership transition. The terms of his separation are still being discussed and will be disclosed in an amendment to this filing.

Dean H. Bergy has been appointed as the Interim Chief Financial Officer, effective October 1, 2012. Mr. Bergy, aged 53, previously served as Vice President and Chief Financial Officer from 2003 to 2009 and most recently as Vice President, Corporate Secretary. His base salary as Interim CFO will be $517,500 annually, and he will receive a prorated bonus for the remainder of 2012, in addition to his existing performance bonus entitlement. He will also receive stock options and restricted stock units valued at $256,500 in November 2012.