Johnson & Johnson (NYSE:JNJ) has for the first time disclosed its pay package for EVP Ashley McEvoy, the worldwide chair of medical device subsidiary J&J Medtech.
McEvoy’s $7.4 million in total compensation could make her the highest-paid woman in medtech. She’s not the highest-paid woman at J&J, however. J&J reported nearly $8.8 million in total compensation for EVP Jennifer Taubert, worldwide chair of pharmaceuticals — and that’s actually less than Taubert made in 2020 and 2021, the first two years of COVID-19 vaccine sales.
J&J Medtech is the world’s second-largest medical device company in the world according to our Medtech Big 100 ranking, trailing only Medtronic. Medtronic reported $7.1 million in total compensation to CFO Karen Parkhill for fiscal 2022. Watch for new pay figures after Medtronic closes its fiscal year at the end of April.
McEvoy’s salary for the year was $984,615, according to a recent filing with the Securities & Exchange Commission. Her pay package also included $3.9 million in stock awards. $1.5 million in option awards, $890,250 in non-equity incentive plan compensation (cash bonus), and $44,308 for registrant contributions to defined contribution plans. J&J said McEvoy received perks and other personal benefits worth less than $10,000, but did not itemize them.
For comparison, J&J reported nearly $13.1 million in total pay to CEO and Chair Joaquin Duato, including a $1.49 million salary, $8.2 million in stock and option awards, a $3;1 million cash bonus and $180,847 for his personal use of corporate aircraft.
The SEC requires publicly traded companies like J&J to disclose pay for five named executive officers: the CEO, CFO and the three next highest-paid individuals.
McEvoy’s performance in 2022
In addition to her contribution to the company’s overall performance, J&J lauded McEvoy on several fronts, including strong operational sales growth that maintained or grew market share in the majority of J&J Medtech’s platforms compared to peer competitors.
McEvoy also “strengthened our pipeline commitments and accelerated high-value projects,” the company said before crediting her with closing the Abiomed acquisition to expand J&J’s reach in cardiovascular disease and heart recovery.
More recently, J&J MedTech cut hundreds of jobs in its surgical robotics business this month. J&J MedTech said it had around 75,000 employees last year when surveyed by Medical Design & Outsourcing for our Medtech Big 100 ranking, but the company has not yet said whether that figure has substantially changed.
Also this month, medtech industry association AdvaMed named McEvoy as its new chair.
McEvoy joined J&J in 1996 as assistant brand manager for subsidiary McNeil Consumer Health. She climbed the ladder over the years, becoming Vision Care company group chair in 2012 and Medical Devices company group chair in 2014.
J&J promoted McEvoy to her current position in 2018, giving her responsibility for the surgery, orthopaedics, interventional solutions and eye health businesses across the Ethicon, DePuy Synthes, Biosense Webster, Abiomed, and Johnson & Johnson Vision brands.
J&J’s CEO pay ratio
In the same filing with its executive pay packages, J&J also disclosed its CEO pay ratio. The SEC requires publicly traded companies to calculate a CEO pay ratio showing how much more the chief executive makes than the median employee.
J&J estimated its median employee wage at $80,000, down from $90,000 in 2021.
“The net effect of changes in currency exchange rates contributed to the decrease in the median,” the company said in its filing. “If the exchange rates had not changed during 2022, the median would have been $86,000.”
That median wage and Duato’s $13.1 million pay package puts J&J”s CEO pay at 164 times more than the median employee’s pay. J&J said that ratio is likely a conservative estimate, and that the true pay gap between the CEO and median worker may be narrower.