Mike Mahoney is chair, president and CEO of Boston Scientific. [Photo courtesy of Boston Scientific]
The executive pay disclosure came in the company’s latest proxy filing with the Securities and Exchange Commission, which also reported an increase in the medtech developer and manufacturer’s median employee wage.
Mahoney’s 2022 pay package primarily consisted of his $1.4 million salary, $12.8 million in stock and option awards and $2.3 million in cash bonuses. Boston Scientific also reported a $376,667 increase in his pension value and nonqualified deferred compensation earnings, and $92,530 in other compensation, including $50,865 worth of personal use of corporate aircraft and $18,300 in 401(k) contribution matches.
The second-highest-paid executive at Boston Scientific was EVP and Chief Financial Officer Daniel Brennan at $5.2 million, followed by EVP and Cardiology Group President Joseph Fitzgerald at $4.8 million, EVP and MedSurg and Asia Pacific Group President Arthur Butcher at $4.2 million, and EVP and Peripheral Interventions President Jeffrey Mirviss at $3.6 million.
Marlborough, Massachusetts-based Boston Scientific is the 12th-largest medical device company in the world according to our Medtech Big 100 list. That ranking was based on the company’s $11.9 billion in 2021 revenue; Boston Scientific reported $12.7 billion in sales for 2022, with sales growth across all of its segments and business units.
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Boston Scientific employee pay
Boston Scientific’s proxy filing also included its CEO pay ratio. The SEC requires publicly traded companies to calculate a pay ratio showing how much the CEO makes compared to the median employee.
Boston Scientific estimated its median employee wage at $76,054, up from $68,891 in 2021. That latest median wage and Mahoney’s $16.9 million pay package puts Boston Scientific’s CEO pay at 223 times more than the median employee’s pay. That’s down slightly from last year’s 233:1 ratio.
“We strive to pay our employees competitively compared to similar positions in the applicable labor market,” Boston Scientific said in the proxy filing. “We follow that approach worldwide, whether for an executive position or an hourly job at a local facility. We take into account location, job level and pay grade, time with us and time in current role, experience and skill set, and adjust compensation annually to match the applicable market. By doing so, we believe we maintain a high-quality, stable workforce.”
Boston Scientific reports gains in employment and diversity
In its most recent annual report, Boston Scientific said it had around 45,000 employees at the end of 2022, up from 41,000 a year before. Approximately 56% of its employees work in the U.S., compared to about 51% the year before.
The company said its workforce diversity is also growing.
“We do our best work to advance health care when we have a diverse range of perspectives and experience on our team,” the company said. “Innovation thrives in a culture of engagement, inclusion and equity. The society in which we live and the customers and patients we serve are diverse and our employees at all levels of the organization must reflect this.”
At the end of last year, 49% of its employees were women (up from 48% a year before), including 42.6% of management roles (up from 41%). Multicultural employees held 22.6% of management roles in the U.S. (including Puerto Rico), up from 22%.
Boston Scientific aimed to increase the share of women managers and supervisors to 43% and multicultural management to 23%.
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The share of U.S. employees who identify as multicultural held steady at 36% year-over-year. Meanwhile, the share of women on the board of directors also remained unchanged at 30%.
“While we are making progress, our work is far from over,” the company said. “We are committed to intentional action to drive meaningful change. We listen to our employees and use that feedback to complement and expand our existing DE&I programs to emphasize initiatives aimed at developing our pipeline of talent and fostering a psychologically safe and inclusive workplace for all.”
More on executive pay:
- Ashley McEvoy joins J&J’s top-paid executives
- Stryker discloses $40M in pay for CEO Kevin Lobo and top execs
- GE HealthCare’s CEO earned more than GE’s CEO before spinoff
- Baxter caps cash severance payouts for executives
- Masimo shareholders vote ‘no’ on executive pay
- Henry Schein investors push back on executive pay
- Zimmer Biomet narrowly avoids shareholder rebuke on executive pay
