Stryker CEO defers his pay raise again

Stryker Corp. CEO Stephen MacMillan ceded another pay raise last year, citing the “challenging business environment” and leaving the orthopedics giant’s top boss at 2008 base pay levels.

Stryker Corp. (NYSE: SYK ) CEO Stephen MacMillan once again deferred a pay raise in 2010 due to the “challenging business environment,” despite increasing the company’s bottom line by 15 percent last year.

The top boss at the Kalamazoo, Mich.-based orthopedic device maker earned $1.2 million in base salary for 2010, the same amount he took home in both 2008 and 2009, according to regulatory filings.

But unlike the previous year, MacMillan took home a significant performance bonus of nearly $1.4 million, just shy of the maximum $1.8 million he could have pulled down. MacMillan received just $545,000 in performance bonuses in 2009, as Stryker saw profits slip by nearly 4 percent for the year.

Stryker’s performance bonuses are based on meeting sales, EPS, cash from operations and quality/compliance standards. In 2009, none of the officers at Stryker Corp. reached even 80 percent of their target bonuses.

MacMillan also fetched about $2 million in stock option awards and about $225,000 in other compensation, for a total of $4.7 million. Some of those perks included country club fees, an executive physical and personal use of the corporate jet.

Overall, Stryker closed out last year on a strong note, reporting profits of $1.27 billion, or $3.19 per diluted share, on $7.32 billion in sales. That’s a 15.5 percent top-line increase from earnings of $1.1 billion, or $2.79 per diluted share, on $6.7 billion in sales during 2009.

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