Bill Hawkins, the outgoing CEO of Medtronic (NYSE: MDT), will remain at the company for one year after stepping down in April. He will receive on top of his current annual salary of $1.25 million an expected $3.8 million in separation pay, according to a regulatory filing.
Medtronic announced earlier this month that Hawkins would leave after three years of leading the company. The Fridley, Minnesota-based maker of new innovative medical devices said it would seek an outside candidate for chief executive officer.
Hawkins’ transition role will largely be as a consultant. He won’t be required to report to work, but instead make himself available to advise on everything from litigation and community affairs to talent retention and industry leadership, according to the separation letter, signed on Tuesday.
Hawkins will also take with him one of Medtronic’s 4,500 iPads. In the separation agreement Hawkins is allowed to keep a “cellular phone, iPad and laptop computer” (no mention of brand of phone or laptop). His stock options and restricted stock grants will also continue to vest during his transition year.
Hawkins’ total compensation was about $9.6 million in the previous fiscal year.
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A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
