SEC Filings

DEFR14A
MEDTRONIC PLC filed this Form DEFR14A on 10/11/2017
Entire Document
 
Name  FY17 MIP   2015-2017
LTPP
   Total Non-Equity
Incentive Plan
Compensation
 
Omar Ishrak  $2,636,139   $3,500,000   $6,136,139 
Karen L. Parkhill  $778,883   $0   $778,883 
Michael J. Coyle  $830,808   $891,000   $1,721,808 
Bryan C. Hanson  $793,044   $0   $793,044 
Rob ten Hoedt  $719,847   $325,000   $1,044,847 
Gary L. Ellis  $734,757   $995,026   $1,729,783 

 

For a more detailed description of the terms of the non-equity incentive plan awards, see page 40 of the Compensation Discussion and Analysis and the narrative disclosure following the 2017 Grants of Plan-Based Awards on page 53 of this proxy statement.

 

Change in Pension Value and Nonqualified Deferred Compensation Earnings

 

This column includes the estimated aggregate increase in the accrued pension benefit under Medtronic’s defined benefit pension plans and Covidien’s Kendall Pension Plan. The change in the present value of the accrued pension benefit is influenced by variables such as additional years of service, age, pay and the discount rate used to calculate the present value of the change. In determining the present value of accrued pension benefits under Medtronic’s plans, a discount rate of 4.30% was used for both Fiscal Year 2017 and Fiscal Year 2016.

 

In determining the present value of accrued pension benefits for Mr. Hanson under Covidien’s Kendall Pension Plan, a discount rate of 3.8% for Fiscal Year 2017 (up from 3.71% in Fiscal Year 2016) was used. The pension values are calculated based on the accrued pension benefits (qualified plan, the nonqualified NRPS and Covidien’s Kendall Pension Plan) as of April 28, 2017, and the fiscal year-end 2017 ASC 715 disclosure assumptions. Assumptions are described in Note 17 to the Company’s Form 10-K for Fiscal Year 2017.

 

All Other Compensation

 

The all other compensation column includes the following:

 

Name  Fiscal
Year
   Perquisites
and Other
Personal
Benefits
(1)   Tax
Reimbursement
(2)   Registrant
Contributions
to Defined
Contribution
Plans
(3)   Total 
Omar Ishrak   2017   $162,315   $47   $11,496   $173,858 
Karen L. Parkhill   2017   $792,484   $111,969   $30,101   $934,554 
Michael J. Coyle   2017   $24,000   $47   $99,678   $123,725 
Bryan C. Hanson   2017   $24,000   $3   $62,047   $86,050 
Rob ten Hoedt   2017   $124,817   $62,411   $0   $187,227 
Gary L. Ellis   2017   $27,797   $37   $6,436   $34,270 
(1) This column represents the aggregate incremental cost of the executives’ business allowances, physical exams, automobile leases, travel expenses and other benefits. The value of perquisites and other personal benefits for each NEO are as follows:
   
  Mr. Ishrak includes a $40,000 business allowance and $122,315 attributable to personal use of Company aircraft. The amount disclosed does not include de minimis incremental costs incurred by the Company in connection with guests accompanying Mr. Ishrak on the Company aircraft during business flights.
  Ms. Parkhill includes a $19,846 business allowance, an executive physical exam of $655, and reimbursement of relocation expenses of $771,983.
  Mr. Coyle includes a $24,000 business allowance.
  Mr. Hanson includes a $24,000 business allowance. The amount disclosed does not include de minimis incremental costs incurred by the Company in connection with guests accompanying Mr. Hanson on the Company aircraft during business flights.
  Mr. ten Hoedt includes $15,208 of financial planning services, an automobile lease of $39,752 and reimbursement of schooling of $69,857.
  Mr. Ellis includes a $17,077 business allowance and an executive physical exam of $160 and $10,560 for services rendered per the terms of the consulting agreement between Medtronic plc and Mr. Ellis approved on December 8, 2016 by the Compensation Committee of the Board of Directors.
     
    The Company occasionally allows its executives to use tickets for sporting and special events previously acquired by the Company when no other business use has been arranged. There is no incremental cost to the Company for such use.
     
(2) For Ms. Parkhill, this amount includes a gross-up of taxes on relocation expense reimbursement. For Mr. ten Hoedt, this amount represents a gross-up of taxes on schooling reimbursement.
   
(3) This amount reflects the contribution by Medtronic to match contributions NEOs elected to make to the SIP. Medtronic provides an automatic matching contribution equal to 50% of a participant’s elective deferrals up to 6% of eligible compensation. The Company also may provide a discretionary matching contribution based on our financial performance during the fiscal year that, when combined with the automatic matching contribution, will not exceed 150% of a participant’s elective deferrals up to 6% of eligible compensation. The Fiscal Year 2017 discretionary matching contribution was based on diluted EPS achievement of $4.60 and equaled an additional $0.223 matching contribution for every $1 elective deferral a participant contributed to the plan up to 6% of eligible compensation. The amount for Ms. Parkhill includes $18,606 in Company contributions to the qualified Medtronic Core Contribution Plan (“MCC”) ($7,950) and the nonqualified MCC ($10,656). Participants in the MCC receive a contribution from Medtronic equal to 3% of eligible pay at the end of the fiscal year. The amount for Mr. Coyle includes $90,213 in Company contributions to the qualified PIA ($13,250) and nonqualified PIA ($76,963). The amount for Mr. Hanson includes $50,551 in Company contributions to the qualified MCC ($7,950) and nonqualified MCC ($42,601). For additional information on the nonqualified MCC plan, see the 2017 Nonqualified Deferred Compensation table on page 59.

 

MEDTRONIC PLC   2017 Proxy Statement    52

 
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