WASHINGTON – Medtronic Inc., the world’s largest medical device maker, paid Chief Executive Bill Hawkins $8.9 million in total compensation for fiscal 2009, a 26 percent increase, according to an analysis by the Associated Press.
The pay hike comes as Medtronic sheds jobs in an effort to streamline operations and shrink underperforming business units.
Hawkins, 55, took the reins of Medtronic last August, replacing Art Collins, who had led the company since 2002.
According a filing with the Securities and Exchange Commission, for the year ended April 24 Hawkins received a $1.2 million salary, a $2.2 million performance-based bonus and $74,700 in other compensation, including a business allowance, contributions to his retirement plans and tax gross-ups, which help pay for taxes on perks.
Hawkins also received stock options and restricted stock worth a total of $5.5 million. The stock options are slightly “underwater,” or worth less than on the day they were granted, because the Minneapolis-based company’s stock has declined. The shares were granted in October 2008 with a strike price of $36.24. Company shares are currently trading around $34.70.