BD reports pay increases for some execs, decreases for others

BD Chair, CEO and President Tom Polen [Photo courtesy of BD]

Becton, Dickinson and Co. (BD) reported pay increases for some executives, decreases for others and no significant change for its highest-paid executive in the company’s latest pay disclosure.

The device developer and manufacturer also reported slightly higher pay for its median worker for fiscal 2024 (ended Sept. 30, 2024).

BD is the world’s 12th-largest medical device company based on the revenue from its medical and interventional segments, according to our 2024 Medtech Big 100 ranking by revenue.

Recruiting and retaining top talent — both at the executive and engineering level — is crucial in the medtech industry, but employee compensation is kept secret in most cases. Medical Design & Outsourcing tracks and analyzes these pay figures when disclosed by major device developers and manufacturers.

BD executive pay

BD reported total compensation to Chair, President and CEO Tom Polan of $17.3 million in fiscal 2024, including a $1.4 million salary, $9.2 million in stock awards, $4 million in stock appreciation rights, a $2.1 million bonus and $343,669 for change in pension value and nonqualified deferred compensation earnings. He also received $269,760 in other compensation for defined contribution plans ($45,225) and personal use of corporate aircraft and other travel expenses ($224,535).

Polen’s total compensation was less than $5,000 more than in fiscal 2023.

BD’s second-highest-paid executive for fiscal 2024 was EVP and CFO Christopher DelOrefice at $5.6 million, including a $785,400 salary, $2.7 million in stock awards, $1.2 million in stock appreciation rights, a $906,400 million bonus and $85,576 in other compensation.

DelOrefice’s pay increased 8% from the year before.

BD’s third-highest-paid executive for fiscal 2024 was EVP and Medical Segment President Mike Garrison at $3.6 million, including a $731,250 salary, $1.5 million in stock awards, $653,450 in stock appreciation rights, a $556,200 million bonus, $122,852 for change in pension value and nonqualified deferred compensation earnings and $45,225 in other compensation.

Garrison’s pay increased less than 1% from the year before.

BD’s fourth-highest-paid executive for fiscal 2024 was EVP and Chief People Officer Shana Neal at $3.3 million, including a $622,580 salary, $1.3 million in stock awards, $579,430 in stock appreciation rights and a $484,471 million bonus. Neal also received $280,268 in other compensation, primarily $205,343 worth of corporate aircraft use and other expenses for traveling between her home and BD’s headquarters, with the company saying she was unable to relocate due to personal reasons after rejoining the company in 2022.

Neal’s pay decreased 44% from the year before

BD’s fifth-highest-paid executive for fiscal 2024 was EVP and Interventional Segment President Rick Byrd at $3.3 million, including a $681,250 salary, $1.2 million in stock awards, $508,246 in stock appreciation rights, a $648,900 million bonus, $208,723 for change in pension value and nonqualified deferred compensation earnings and $44,835 in other compensation.

BD did not disclose Byrd’s prior year pay because it was his first time in the pay disclosure following the July 2024 retirement of EVP and Life Sciences Segment Dave Hickey. BD is reportedly in talks to sell that Life Sciences business to a handful of potential buyers.

“Our executive compensation program embodies a pay-for-performance philosophy that supports BD’s business strategy and aligns the interests of our executives with those of our shareholders,” the company said in the filing. “At the same time, we believe our program does not encourage excessive risk-taking by management.”

BD’s median worker pay and CEO pay ratio

The U.S. Securities and Exchange Commission requires publicly traded companies to calculate the gap between CEO compensation and pay for its median employee.

BD calculated its median employee wage at $43,763, up about 3% from $42,404 the year before.

The latest median employee pay figure put BD’s CEO pay at 396 times more than its median employee’s pay. That pay gap narrowed slightly from 408:1 the year before.

At other medtech companies that offer more details about their median workers than required by the SEC pay disclosure rules, those median medtech workers often hold technical roles such as device design or engineering.

BD investors overwhelmingly supported the company’s executive compensation packages in an advisory “say-on-pay” vote at the company’s annual meeting in January.

Previously: BD limits executive severance after ‘golden parachute’ shareholder proposal overcomes board opposition