Boston Scientific reported a 28% decrease in pay for its median worker in the device manufacturer’s latest disclosure of executive compensation.
That decrease — along with an increase in compensation for Boston Scientific Chair, President and CEO Mike Mahoney — resulted in a wider gap between CEO pay and the median worker than the year before.
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.
2023 analysis: How does medtech CEO pay stack up to the rank and file?
Boston Scientific is the 12th-largest medical device company in the world according to our 2023 Medtech Big 100 ranking by revenue. That ranking was based on the company’s $12.68 billion in 2022 revenue.
Boston Scientific reported $14.24 billion in sales for 2023. Stay tuned for our 2024 Medtech Big 100 ranking in the coming weeks to see where Boston Scientific lands.
Related: 5 tips from Mike Mahoney and other medtech leaders for the next generation
Boston Scientific’s median worker pay
Marlborough, Massachusetts-based Boston Scientific estimated its median employee wage at $54,147 for 2023, down from $76,054 the year before.
That lower median wage and Mahoney’s growing pay package put Boston Scientific’s CEO pay at 346 times more than its median employee’s pay. That pay gap widened from last year’s 223:1 ratio.
The CEO pay ratio is an SEC-mandated disclosure of what a company pays its CEO compared to its median employee. Boston Scientific did not describe its median employee by location or job title. 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.
“We strive to pay our employees competitively compared to similar positions in the applicable labor market,” Boston Scientific said in the 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’s declining median worker pay could be due to an increasing share of employees outside the U.S. and the company’s manufacturing expansion for products like the Farapulse pulsed-field ablation (PFA) system.
Boston Scientific employment grew to approximately 48,000 people by the end of 2023, up 7% from the year before. The share of employees outside the U.S. grew from 56% to 58%.
At the same time, the company’s global real estate footprint increased from 9.53 million ft² at the end of 2022 to 11.19 million ft² at the end of 2023. Real estate outside of the U.S. made up 45% of that total in 2023, down from 47% the year before.
Boston Scientific said it had 15 principal manufacturing facilities in both years, including eight in the U.S. and Puerto Rico, three in Ireland, two in Costa Rica, one in Malaysia, and one in Brazil.
Related: Boston Scientific wins public funding for $170M ‘Project Black Bear’ expansion
Boston Scientific executive pay
Boston Scientific Chair, President and CEO Mike Mahoney [Photo courtesy of Boston Scientific]
Mahoney’s total compensation increased 11% from the $16.94 million in 2022.
Boston Scientific EVP and CFO Daniel Brennan received total compensation of $5.83 million. This includes a salary of $801,528, stock awards of $2.76 million, option awards of $825,000, cash bonuses of $1.32 million, a change in pension value and nonqualified deferred compensation earnings of $90,210, and other compensation amounting to $23,677.
Brennan’s total compensation increased 11% from $5.25 million in 2022.
Boston Scientific EVP and Cardiology Group President Joseph Fitzgerald received total compensation of $5.59 million. This includes a salary of $793,560, stock awards of $2.76 million, option awards of $825,000, cash bonuses of $1.02 million, a change in pension value and nonqualified deferred compensation earnings of $165,136, and other compensation amounting to $27,372.
Fitzgerald’s total compensation increased 17% from $4.76 million in 2022.
Boston Scientific EVP and MedSurg and Asia Pacific Group President Arthur Butcher received total compensation of $4.27 million. This includes a salary of $672,077, stock awards of $2.01 million, option awards of $599,998, cash bonuses of $756,872, a change in pension value and nonqualified deferred compensation earnings of $171,680, and other compensation amounting to $62,299.
Butcher’s total compensation decreased 28% from $5.96 million in 2022.
Boston Scientific EVP and Peripheral Interventions President Jeffrey Mirviss received total compensation of $3.78 million. This includes a salary of $652,646, stock awards of $1.76 million, option awards of $524,992, cash bonuses of $734,422, a change in pension value and nonqualified deferred compensation earnings of $60,008, and other compensation amounting to $51,498.
Mirviss’ total compensation increased 6% from $3.56 million in 2022.
Boston Scientific shareholders voted overwhelmingly in support of the company’s executive compensation at the annual meeting in May.
“During 2023, our management team continued to execute our strategy of category leadership, innovation and investing in our capabilities for the future, while navigating economic and geopolitical uncertainty and continued supply chain challenges,” Boston Scientific said. “To keep with our commitment to pay for performance, the Compensation Committee set ambitious but achievable targets based on our internal plan, reflecting relevant internal and external factors, with a goal of motivating employees to drive stockholder value. In 2023, we achieved outstanding financial performance while positioning the company well for the year ahead and for the future. We are proud of our global team, their focus on our core mission and values, and their unwavering commitment to supporting our customers and their patients.”
More: The 10 largest medtech employers of 2023 – and what their employees really think
More medtech compensation analysis for CEOs, top-paid executives and median workers
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