That’s according to regulatory disclosures by Boston-based GE (NYSE:GE) and Chicago-based GE HealthCare (Nasdaq:GEHC), which provide new details about the medtech developer as an independent organization.
GE HealthCare ranked No. 6 on Medical Design & Outsourcing‘s Medtech Big 100 list of the largest medical device companies in the world. That ranking was based on GE HealthCare’s $17.7 billion in 2021 revenue as a GE subsidiary. GE HealthCare reported revenue of $18.3 billion for 2022 before separating from GE in January 2023, and said it expects organic growth of 5-7% in 2023.
GE HealthCare executive pay
GE HealthCare disclosed its executive pay packages in its first proxy filings with the Securities and Exchange Commission yesterday.
GE HealthCare reported nearly $10.5 million in total compensation for President and CEO Peter Arduini last year, including a $1.25 million salary, $8.2 million in stock awards and options, an $890,625 cash bonus and $120,520 in other compensation.
His pay package included $1.4 million in stock awards as a new hire bonus for joining GE in January 2022 after a nine-year career at Integra LifeSciences. It’s not Arduini’s first stint at GE; from 1990 to 2005, he worked his way up from regional sales manager to VP and GM of GE’s global functional and computed tomography business, according to his LinkedIn profile.
GE HealthCare’s second-highest-paid executive is General Counsel and Corporate Secretary Frank Jimenez, with $7 milllion in total compensation. He’s followed by Chief People Officer Betty Larson at $6 million (including a $675,000 cash sign-on bonus), Chief Financial Officer Helmut Zodl at $2.82 million and Imaging President and CEO Jan Makela at $2.81 million.
Arduini’s pay package not only made him the top-paid employee at the spinoff, but also at GE, where Chair and CEO Lary Culp’s total compensation fell by more than 60% to $8.2 million last year.
Culp and the GE board’s Compensation Committee agreed to reduce his annual equity grant by $10 million after shareholders voted against the company’s executive pay packages. GE HealthCare investors will have their first “say-on-pay” advisory vote at the spinoff’s inaugural annual meeting on May 23.
Employees and locations
In its first annual report, GE HealthCare said it had approximately 50,000 employees at the end of 2022, up 4% from 48,000 the year before.
Approximately 8,200 GE HealthCare employees (including executives) received a one-time equity grant worth a total of $100 million on Feb. 1, 2023. These “founders grants” will vest 50% on Feb. 1, 2025, and 50% on Feb. 1, 2026. Employees need to remain with the company to vest, with limited exceptions.
About 16,300 of the company’s employees are in the U.S., including around 1,100 union-represented manufacuturing employees. The company’s major centers are in or near Chicago and Milwaukee.
GE HealthCare’s largest foreign workforce is in China, with about 7,200 employees. Major international centers of operation include Paris, Bangalore and Shanghai.
The company owns or leases 336 facilities (excluding third-party logistics sites), including 43 manufacturing facilities (31 owned, 11 leased and one part-owned and part-leased).
GE HealthCare said it has 17 manufacturing facilities in the U.S. and 26 in China, India, Israel, Mexico, Brazil, Austria, Denmark, France, Germany, Ireland, the Netherlands, Norway, Sweden, Finland, South Korea, and Japan.
As a new company, GE HealthCare has not yet disclosed its median employee pay or its CEO pay ratio.