Omar Ishrak, the CEO of Medtronic, earned $12.1 million in total compensation in 2013, which was 35% higher than his total pay in the previous year.
The boost in pay reflects Medtronic’s good fortunes in the stock market last year; its share price increased from $41.45 at the beginning of 2013 to $57.49 by the end of the year—nearly a 40% jump.
Most of the compensation increase was the result of a $4.7 million incentive award and a $2.7 million stock option award Ishrak received. He was also awarded over $3 million in stock and $1.4 million in salary. In addition, Ishrak earned $2.1 million from vested shares.
According to a recent roundup of top-paid medtech CEOs, Ishrak was the ninth highest-paid executive in the industry last year.
Ishrak has been the Medtronic CEO since June 13, 2011. One of his initial goals at the firm was to improve the company’s execution, as he explained in an interview with CNN in 2012. “The basics are around aligning the organization so that it is very clear as to what people’s roles and responsibilities are. Organizations may or may not have that in issue. But at Medtronic, I felt it was necessary to make that very clear given the fact that we are a fairly large global company.” In the end, Ishrak said, having the company focused on a single goal can pay dividends.
The strategy seems to be paying off, with the company's stock steadily increasing for most of the time that he has led the company.
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Before his stint as Medtronic’s chief executive, he headed up General Electrics’ Healthcare Systems group.
In the 1990s, while working as vice president for GE, Ishrak helped establish the company as an innovator in ultrasound technology. Under his leadership, he pushed the company to develop a wave of innovative ultrasound systems and to boost sales of ultrasound technology internationally.
Medtronic made headlines recently after announcing its plans to acquire Irish device firm Covidien—at a price tag of nearly $43 billion.
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