SEC Filings

DEFR14A
MEDTRONIC PLC filed this Form DEFR14A on 10/11/2017
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How We Establish Executive Compensation Levels

 

The Compensation Committee considers relevant market pay practices when establishing executive compensation levels and evaluating compensation programs, including base salary and annual and long-term incentives. To facilitate our ability to benchmark competitive compensation levels and practices, the Compensation Committee established a 27-company compensation comparison group (“Comparison Group”). The Compensation Committee selected the companies that constitute the Comparison Group after discussing various recommendations from the Independent Consultant. The Comparison Group is selected using Compensation Committee-approved criteria designed to identify companies that reflect our size (measured by revenue, market capitalization, and other size measures), our complexity, and our global footprint and to ensure we include companies that represent our Medical Device and Life Sciences industry.

 

The Compensation Committee uses data from the Comparison Group to establish a competitive market median range within which individual pay can be positioned to reflect each NEO’s experience and performance. Consistent with our pay-for-performance philosophy, we establish an award range for short-term and long-term incentives that generates above-market pay for above-market performance and below-market pay for below-market performance. In addition to the competitive market information, the Compensation Committee also reviews information about performance, potential, expertise, and experience for each NEO.

 

The following table summarizes the selection criteria used by the Compensation Committee to select the Compensation Comparison Group.

 

Selection Criteria
Start with the 200 largest U.S. companies on revenue (Fortune 200) and market capitalization

Limit to 6 Global Industry Classification Standard Sectors

1. Health Care

2. Consumer Discretionary

3. Consumer Staples

4. Industrials

5. Information Technology

6. Materials

Consider the following criteria for selecting companies

1. Overall company size

2. Health care company

3. Global operations

4. Manufacturer

5. Government contractor

6. Information technology hardware

7. Geographic competitor

 

During Fiscal Year 2017, the Independent Consultant recommended the removal of St. Jude Medical from the Comparison Group because they were acquired by Abbott Laboratories in January 2017 and Abbott Laboratories is in our Comparison Group. The Compensation Committee approved that change. Summarized below is a comparison of the Company to the Comparison Group in various measures of financial and market size at the middle of Fiscal Year 2017:

 

COMPARISON GROUP SIZE COMPARISONS

 

 

 

27-Company Comparison Group
3M IBM
Abbott Laboratories Intel
AbbVie Johnson & Johnson
Amgen Lilly
Biogen Idec Lockheed Martin
Boeing Merck
Boston Scientific Monsanto
Bristol-Myers Squibb Pepsico
Cisco Systems Pfizer
Coca-Cola Procter & Gamble
Du Pont Qualcomm
General Electric United Technologies
Gilead Sciences UnitedHealth Group
Honeywell  
-- All financial and market data are taken from Standard & Poor’s Capital IQ
   


 

MEDTRONIC PLC   2017 Proxy Statement    38

 
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