Stryker (NYSE:SYK) shook up its corporate deck this week, announcing the appointment of Kevin Lobo as its new president & CEO, the resignation of interim CEO and chief financial officer Curt Hartman, and appointing Dean Bergy its interim CFO, all of which took effect October 1.
In regulatory documents filed this week Stryker revealed the details of the shuffle, including Lobo’s $1 million base salary and 130% target annual bonus.
Lobo took the corner office after a year-and-a-half with Stryker. He joined in April 2011 as president of the neurotechnology & spine group, landing a role as group president of Stryker’s orthopedics business 2 months later when Michael Mogul headed off to greener pastures.
"[Kevin] won people over," former Stryker CEO Stephen MacMillan, who originally hired Lobo last year, told MassDevice.com. "[He] took over a tough business in orthopedics, which can be tough on outsiders."
Lobo came in as the president of a new neurotechnology unit, comprised of the company’s own neurovascular and spine divisions and the assets from its $1.5 billion acquisition of Boston Scientific (NYSE:BSX) (NYSE:BSX) stroke-treatment business.
MacMillan recruited Lobo from healthcare giant Johnson & Johnson (NYSE:JNJ), where Lobo was president of Ethicon Endo-Surgery. Lobo previously held finance positions at KPMG, Unilever Canada and Kraft Canada, according to regulatory filings.
"He’s by far the best choice. I’m frankly happy to have him carry on our legacy," MacMillan told us when we caught up with him at the AdvaMed 2012 MedTech conference in Boston this week. "They made a great choice in Kevin."
Lobo took over the corner office from Curt Hartman, who has served as interim CEO since MacMillan resigned amid controversy in February of this year.
Lobo’s appointment came as a surprise to some analysts, who had previously suggested that Stryker might make Hartman interim role official.
Hartman’s resignation was announced alongside Lobo’s appointment, although he will stay on in an advisory role for the time being.
"Hartman, who has served as Stryker’s interim CEO since February of this year, has decided to pursue opportunities outside of Stryker," the device maker announced, "but has agreed to stay on as an advisor to the CEO to assure a smooth transition as the company conducts a search for a permanent CFO."
In Hartman’s place, Stryker named Dean Bergy CFO, a role he’s held before, on an interim basis in addition to his duties as vice president and corporate secretary. Bergy’s appointment will last until a replacement is found, for which he will receive a bonus of more than $97,000 for the remainder of 2012, in addition to bonuses he’s eligible to receive in connection with his other duties at Stryker.*
Bergy has a long and convoluted history with Stryker, where he started in 1994 as a corporate controller. He was promoted to VP of finance for the company’s medical division in 1996, and further promoted to VP of finance for corporate in 1998.
In 2003 Bergy was named VP and CFO, while continuing his duties as secretary. He resigned in 2009 VP and CFO, staying on as an advisor to the CFO. He returned as secretary in 2011 and was elected VP and corporate secretary again this month, according to his corporate biography.
SYK shares rose 0.9% today, trading at $54.89 as of about 1:10 p.m.
*Updated October 6, 2012, at 2:30 a.m.: Due to a reporter’s error, this paragraph stated that Bergy’s stated contract ends at the end of this month. He will remain interim CFO until a replacement is named.