Medtronic Inc. disclosed in a regulatory filing Tuesday that it is paying Omar Ishrak, the incoming chairman and CEO, a sign-on bonus of $650,000 and a base salary of $1.35 million to lead the Fridley, Minnesota-based company.
Medtronic, which makes new innovative medical devices, said that it is also paying $50,000 to reimburse attorney’s fees that Ishrak incurred in hammering out the employment agreement. Ishrak will have to return the $650,000 sign-on bonus if he leaves Medtronic or is fired before the end of this year. He also will enjoy an annual business allowance of $40,000. The 55-year-old Ishrak joins Medtronic June 13 and is a 16-year veteran of GE Healthcare.
Some details of Ishrak’s at-will employment contract as highlighted by Barclays Capital analyst Adam Feinstein include: (read more details in Medtronic’s regulatory filing here):
- Annual incentive of 140 percent of base salary (maximum of 225 percent of that target).
- FY 2012 initial award having a grant date value of at least $8,450,000 when granted in June 2011 at the time that the Compensation Committee makes the annual long-term incentive performance grants for all senior executive officers
- An annual long-term incentive compensation: In FY12, Ishrak will receive “at least” $8.45 million in long-term incentives, subject to the same terms and conditions as other senior executives of the company.
