Stryker Corp. (NYSE:SYK) and former CEO Stephen MacMillan are still working on the terms of a separation agreement after his abrupt resignation last week, company officials said yesterday.
In filings with the federal Securities and Exchange Commission, the company said it is "discussing the specific terms of a separation agreement with Mr. MacMillan, which will be publicly disclosed at such time as agreement is reached."
MacMillan abruptly resigned from the company last week, to devote his time to dealing with "family issues."
MacMillan, who had been CEO since 2005, was set to receive a generous severance package, per the company’s standard separation agreement – 2 weeks of salary for each of his 7 years of service, valued at just more than $323,000. MacMillan also signed a 12-month non-competition agreement with the Kalamazoo, Mich.-based medical device maker.
MacMillan’s 2010 base salary was $1.2 million, with stock and other compensation worth another $3.5 million, according to a proxy statement. He has just under 1.2 million shares of stock and rights to acquire additional stock valued at about $62.5 million, according to the filing.
Stryker wasted no time in moving on, coming to terms with interim-CEO Curt Hartman, who will serve until a permanent replacement can be found for MacMillan.
Hartman, 48, will do double-duty as CFO and CEO, earning $750,000, a 45% jump from his $517,500 CFO salary. Hartman could also earn a bonus of $750,000, nearly double the $388,000 he’s eligible for as CFO, according to the filings. Hartman’s brother Art Hartman has been the company’s vice president for regulatory affairs and quality since 2010, according to another filing.
Stryker’s board also named lead independent director William Parfet non-executive chairman, according to the filings.