The orthopedics and wound care giant last year tapped former Alere chief Namal Nawana to replace the retiring Olivier Bohuon. At Alere, Nawana pulled down $8.6 million in 2016 and $11.1 million in 2015, the Financial Times reported, citing “two people familiar with the matter;” his remuneration at Smith & Nephew for seven months of 2018 was $2.8 million.
SN shares are up 30.9% to £17.08 apiece in London since Nawana took over the corner office in May 2018, with increased revenue growth and an overhauled executive team and operating model. SNN shares are up 22.4% to $43.83 during that span.
“It would be a way for Namal to boost his pay,” one source who was briefed on the board’s discussion told the newspaper. “He’s probably paid as much as British institutional investors will stomach. But in the U.S., pay is just not an issue.”
Smith & Nephew’s investor base is increasingly coming from the U.S., according to the source; the U.S. is also its largest market and Nawana lives in the Boston area, according to the paper.
“All I can tell you is that the British system is the British system and I joined the company because I genuinely like this opportunity,” Nawana told the FT when asked if his pay is sufficient. As for a move to a U.S. listing, that’s “a strategic question for boards,” Nawana said.
“That’s not something that I would comment on,” he said. “It’s a subject that would be a confidential subject in any board. So, there’s no reason for us to discuss that, nor would I be authorized to discuss that with you.”
“Smith & Nephew is focused on delivering its strategy and on continuing to build on the momentum in the business; delisting from the U.K. is not part of this strategy. It is proud of its success as a global company with a 160-year heritage in the U.K.,” a company spokesman told the newspaper.