Boston Scientific (BSX) Announces 2025 Compensation Plans

Boston Scientific Corporation (BSX, Financial) has unveiled its 2025 Annual Bonus Plan and two new performance share programs, designed to align executive compensation with company performance and shareholder interests. The announcement, made on November 19, 2024, follows the recommendation of the Executive Compensation and Human Resources Committee and approval by the Board of Directors.

The 2025 Annual Bonus Plan offers cash incentives to eligible employees, including named executive officers, based on the achievement of specific performance metrics. These metrics include global sales, adjusted earnings per share, operating income as a percentage of sales, and environmental, social, and governance (ESG) goals. The plan allows for a target bonus pool, with distribution percentages ranging from 0% to 150%, and individual performance modifiers that can result in payouts up to 225% of an individual’s target bonus.

In addition to the bonus plan, Boston Scientific has introduced the 2025 Relative Total Shareholder Return Performance Share Program (2025 rTSR PSP) and the 2025 Organic Net Sales Growth Performance Share Program (2025 Organic Net Sales PSP). These programs are part of the company’s long-term incentive strategy, offering performance share awards in the form of restricted stock units. The 2025 rTSR PSP measures the company’s Total Shareholder Return against the S&P 500 Healthcare Index over a three-year period, while the 2025 Organic Net Sales PSP focuses on organic net sales growth, excluding foreign currency fluctuations and certain acquisitions and divestitures.

Both performance share programs include provisions for recoupment in cases of executive misconduct and adhere to the company’s Dodd-Frank Clawback Policy. These initiatives underscore Boston Scientific’s commitment to aligning executive compensation with performance and shareholder value.

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