MacMillions for Stryker Separation (Walter Eisner @ OTW)
Stryker Corporation and ex-CEO Stephen MacMillan have agreed to terms of separation.
Ironically, terms of separation are what got the former Stryker boss into hot water in the first place, as some board members reportedly lost confidence in MacMillan over a marital separation. MacMillan’s wife filed for divorce in a Michigan court in September.
In SEC papers filed at the end of February, the company reported that MacMillan will receive $5.5 million in a severance payout. In addition, MacMillan, whose resignation was treated as a “termination without cause,” is entitled to payment of his 2011 bonus of $1.1 million. He’ll also have two years to exercise vested options for 1.2 million shares.
MacMillan was, however, stripped of 676,644 stock options. Those options had a market value of roughly $6 million according to a compensation consultant quoted in the Wall Street Journal. He will get to keep about 1.2 million shares in stock options he’s been granted over his seven-year tenure. Those options, valued at about $65 million based on Stryker stock price at the time of his departure, will vest immediately and remain exercisable for two years.
The company will also pay for MacMillan’s medical, dental and vision benefits for 18 months and then will provide him with lump sum payments to cover his COBRA benefits for six months. He also gets some office space and outplacement services.
MacMillan agreed not to sue the company, disclose any confidential information or compete directly with Stryker for a period of two years.