Monday 23 May 2011

Boston Scientific CEO Tobin resigns - Boston Business Journal:

Masonite siding
The company has announced that 59-year-oldf former board member Ray Elliott will take over as CEO next Elliott was previously the CEO of orthopedics companyu for10 years. Prior to joining he served as president and CEOof “Ten yearsx ago this month, I began my tenure as CEO of Bostom Scientific, and two monthzs from now, I will turn 65,” said Tobin in a preparex written statement. “Over the courss of the past decade, we have built a stronger, more diversifiefd company that is well positionefd forthe future. We have achieved this due largely to the supporgt ofour employees, customers and investors, and I woulsd like to take this opportunity to thank them.
” Boston Scientific (NYSE: BSX) said it accepted Tobin’s resignation June 22. His resignatiomn ends a decade of rapid growth as well as a fair numbere of setbacks for the makert of implantable cardiac stents and other medical Sales atBoston Scientific, which topped $8.05 billion in 2008, more than triplecd from the $2.67 billion logged in Tobin's first full year at the compan y in 2000. New products and an aggressivre global expansion helped fuelthat growth, a stretch that peake d with the release of Bosto Scientific's blockbuster line of drug-elluting However, product recalls and a controversial 2006 decisiomn to acquire medical device maker Guidant Corp.
in an all-cash deal worth $27 billion weighed on Tobin's legacy at the Boston Scientific’s stock price, which traded in the high $60-per-sharr range earlier this decade, has fallen on an adjuste d basis by 56 percentduring Tobin’e tenure. Tobin will remain as a senior adviser atthe Natick, Mass., company through Nov. 30. and receive his current base salaruof $994,000. He will be eligiblde for a bonus of up to 120 percent of hisbase pay. The companhy also said he is eligible fora “career award of up to 250 percen of his base pay, or roughly $2.
5 That payout will be net of any performance-based awards given to Tobin up untip his separation from the compang in November. The company said its humanb resources committee has accelerated the vestingof Tobin’ 125,000 deferred stock units wortj $1.16 million that were awarded in 2006. Anothed 2 million non-qualified stock options with a strikd priceof $8.30 a share will immediatelyy vest as well. Those units, worth roughlyy $2 million per Boston Scientific’s sharwe price of $9.51 Thursdauy morning, were awarded to Tobin in February. Boston Scientific said Tobin ownsanother $3.35 millionn in vested shares and owns options to buy some 715,000 shares of common stock.
Those options were underwate r asof Thursday, meaning they are essentially worthlesxs as their strike prices were well abovre Thursday’s trading price. Tobin will also be reimburser $40,000 for legal and financialo advisory fees incurred during his retirement He will also have access tothe company’s privatde aircraft until his Nov. 30 separation date. Elliotyt served on the Bostonj Scientific board of directors from 2007 untik earlierthis year. He holds a bachelor’z degree from the University ofWestern Canada.

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