Medtronic Inc., the world's largest medical device maker, paid new Chief Executive Bill Hawkins compensation valued at $7.1 million for fiscal 2008, according to a proxy statement filed Friday.
Hawkins, 54, was named CEO last August, replacing Art Collins, who had led the company since 2002.
For the year ended April 25, Hawkins received a $996,000 salary, a $971,749 performance-based bonus, and $46,000 in other compensation. He also received stock and options valued by the company at $5.1 million at the time they were awarded.
The entire pay package amounts to a 40 percent boost from the $5 million in compensation Hawkins received in 2007. He had served as the company's chief operating officer since 2004 and had previously run its vascular business.
Separate from his annual compensation, Hawkins received restricted stock awards worth nearly $2 million.
Collins, 60, racked up $2.1 million in compensation for the year, primarily as chairman of the company's board of directors. He is scheduled to step down Aug. 21, the day of the company's annual meeting.
Collins received $1 million in salary, $987,656 in performance-based bonus and $23,414 in miscellaneous salary. The amount is more than 70 percent less than what he received as CEO last fiscal year.
Separate from his annual compensation, Collins also exercised stock options worth $18 million and received $2.8 million in vesting stock awards.
Fridley-based Medtronic makes devices such as implantable heart defibrillators, spinal implants, and insulin pumps. After a strong run-up through the 1990s, Medtronic shares touched $62 on Dec. 26, 2000, but they have been treading water in recent years, trading at around $53 on Friday.
For fiscal 2008, Medtronic earned $2.23 billion, or $1.95 per share, down from $2.8 billion, or $2.41 per share a year ago. Revenue rose to almost $13.52 billion, up from about $12.3 billion a year earlier.
Last month, Hawkins told investors Medtronic expects increased demand for its products in developing countries to drive earnings up 14 percent by 2013. While the U.S. market for medical technology seems to have reached a saturation point, Hawkins said hospitals and doctors in nations like China are ramping up spending on devices.
The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, the estimated value of stock options and awards granted during the year and above-market returns on deferred compensation. The calculations don't include changes in the present value of pension benefits and sometimes differ from the totals released by the companies.
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