SEC Filings

MEDTRONIC PLC filed this Form DEFR14A on 10/11/2017
Entire Document

2017 Option Exercises and Stock Vested


The table below includes information related to options exercised by each of the NEOs and restricted stock awards that vested during Fiscal Year 2017. The table also includes the value realized for such options and restricted stock awards. For options, the value realized on exercise is equal to the difference between the market price of the underlying shares at exercise and the exercise price of the options. For stock awards, the value realized on vesting is equal to the market price of the underlying shares at vesting.


   Option Awards  Stock Awards
Name  Number of Shares
Acquired on Exercise
  Value Realized
on Exercise
  Number of Shares
Acquired on Vesting
  Value Realized
on Vesting
Omar Ishrak  75,000  3,300,720  58,701  5,143,969
Karen L. Parkhill  0  0  0  0
Michael J. Coyle  0  0  14,680  1,286,408
Bryan C. Hanson  45,272  2,637,971  13,483  1,004,116
Rob ten Hoedt  61,173  2,213,209  3,924  343,860
Gary L. Ellis  82,936  3,077,223  15,944  1,397,173


2017 Pension Benefits


The table below includes information with respect to Medtronic’s and Legacy Covidien’s pension plans for each of the NEOs as of April 28, 2017, which is the measurement date used for financial statement reporting purposes. A narrative description of the material factors necessary to understand the information in the table is provided below.


Name  Plan Name  Number of Years of
Credited Service
  Present Value of



  Payments During Last Fiscal Year



Omar Ishrak  Medtronic, Inc. Personal
Pension Account
(Personal Pension Account)
  5.83  81,123    0  
   Medtronic, Inc. NRPS  5.83  991,680    0  
Karen L. Parkhill(3)               
Michael J. Coyle(3)               
Bryan C. Hanson(4)  Kendall Pension Plan  2.7  9,027    0  
Rob ten Hoedt(5)  Medtronic Pension Fund  10.33  3,684,216    803,919  
Gary L. Ellis  Medtronic, Inc. Retirement Plan (Medtronic Retirement Plan)  27.08  868,235    0  
   Medtronic, Inc. NRPS  27.08  4,128,927    0  
(1) The present value of the accumulated benefits is calculated using the assumptions described in Note 17 to our consolidated financial statements in our annual report for Fiscal Year 2017 accompanying this proxy statement. Further, in accordance with the disclosure requirements, the accumulated benefit is calculated using the retirement age at which the benefit is unreduced under the plan (i.e., age 65). Only the Medtronic Retirement Plan component of the Medtronic, Inc. Retirement Plan is reduced for early commencement if the benefit is commenced before the normal retirement age of 65. The Personal Pension Account Plan is an account-based plan and therefore is not reduced for early commencement. Please see below for additional detail.
(2) The amount for Mr. ten Hoedt represents ordinary contributions and a voluntary purchase into the pension plan. Both amounts are shown as a negative payment. The increase in the Present Value of Accumulated Benefit includes these amounts.
(3) Ms. Parkhill and Mr. Coyle do not participate in the Company’s defined benefit pension plans.
(4) Mr. Hanson participates in the Legacy Covidien pension plan. The Payments During the Last Fiscal Year column describes ordinary contributions and voluntary purchases into the pension plan.
(5) Mr. ten Hoedt participates in a pension plan for Swiss employees.


The Medtronic, Inc. Retirement Plan consists of two types of benefits, the Medtronic Retirement Plan (MRP) and the Personal Pension Account (PPA). Effective May 1, 2005, the Company froze the MRP to new entrants and provided all eligible employees the option of continuing to accrue retirement benefits under the MRP or to participate in one of two new options being offered. Employees hired before May 1, 2005 had the option of continuing in the MRP or electing to participate in either the PPA or PIA described below. Effective January 1, 2016, the Company froze the PIA and the PPA to new entrants. All eligible employees continue to accrue retirement benefits under the PIA or PPA. New employees hired on or after January 1, 2016 earn the Medtronic Core Contribution (MCC). The MCC provides a 3% employer contribution. The MRP is the final average pay component of the Medtronic, Inc. Retirement Plan. Employees hired on or after May 1, 2005 chose within 60 days of their hire date to participate in either the PPA or the Personal


MEDTRONIC PLC   2017 Proxy Statement    57