Bedford, Mass.-based Hologic (NASDAQ: HOLX ) has a new CEO. On Monday, the medical imaging devices maker announced that Jack W. Cumming, Chief Executive Officer of Hologic from 2001 to 2009, and most recently from July 2013 to present, is turning over his chair to newly appointed President and Chief Executive Officer Stephen P. MacMillan.
Hologic says it has been in talks with former Stryker Corporation CEO MacMillan about taking the CEO's role since late October, finally concluding that "his track record of delivering strong financial results and creating shareholder value makes him the ideal chief executive officer for Hologic." While at Stryker, MacMillan helped that company nearly triple its revenues, while Stryker's share price "significantly outperformed the S&P 500 index" during his tenure. After leaving Stryker, MacMillan spent about a year serving as CEO of biomedical research firm sBioMed, LLC.
In a filing with the SEC, Hologic revealed that it will be paying MacMillan an annual base salary of $1 million, plus:
- An annual bonus targeting 150% of base salary (pro-rated for fiscal 2014).
- "Not less than" $250,000 as deferred compensation.
- Restricted stock units (RSUs) worth approximately $1.75 million.
- Stock options also worth $1.75 million.
- Performance stock units (PSUs) worth $3.5 million, conditioned on MacMillan achieving certain performance metrics.
- One-time "inducements" of $2.5 million worth of RSUs, $5 million in stock options, and $2.5 million in PSUs.
Hologic will also pick up MacMillan's housing costs for the first three years of his employment with Hologic.
Finally, Hologic says that, if MacMillan should decide to purchase shares of the company on his own prior to December 31, 2014, he will be gifted matching RSUs equal in value to the stock he buys with his own money, up to $5 million.
The total compensation package appears likely to be worth as much as $24.75 million to MacMillan in his first year as CEO. Hologic shares dropped 0.8% after this news was announced Monday, closing at $22.12.