ZimVie executive pay is public for the first time a year after the spine and dental device developer spun off from Zimmer Biomet.
Westminster, Colorado–based ZimVie (Nasdaq:ZIMV) disclosed pay for its top executives in late March ahead of the May 12 inaugural annual meeting of shareholders. Investors will weigh in on the executive pay packages for the first time in an advisory “say-on-pay” vote.
One of those executives is no longer with ZimVie. In annual proxy filings with the Securities and Exchange Committee, the company said former SVP and Chief Human Resources Officer David Harmon “separated from the company” on Jan. 13, 2023.
Harmon joined ZimVie in September 2021 and was announced as part of the leadership team before the spinoff launched in March 2022. He was previously the chief people officer at Gannett; he now lists himself as self-employed on his LinkedIn profile.
The proxy filing doesn’t say why Harmon left, but noted that he received $804,540 for severance and related payments for a company-initiated termination without cause.
ZimVie’s new HR leader is SVP Heather Kidwell, who serves as chief legal, compliance, and human resources officer. Kidwell joined Zimmer Biomet in 2009.
ZimVie executive pay
ZimVie President and CEO Vafa Jamali made $10.4 million in total compensation for 2022, up 28% from $8.1 million in 2021. His 2022 pay included a $773,462 salary and $9 million in stock and option awards. Jamali also received $80,805 in other compensation, primarily matching contributions for his to 401(k) plan and deferred compensation plan.
ZimVie EVP, CFO and Treasurer Richard Heppenstall was the company’s second-highest-paid employee at $2.7 million in 2022, up 92% from $1.4 million the year before.
SVP and Global Spine President Rebecca Whitney followed at $1.8 million, up 98% from $920,796 the year before.
SVP and Global Dental President Indraneel Kanaglekar wasn’t far behind Whitney at $1.7 million, up 97% from $879,124 in 2021.
Harmon was the fifth of the five named executive officers for which ZimVie is required to disclose pay. His total compensation was nearly $1.6 million for 2022. Zimvie did not disclose his prior-year compensation.
In its first annual report, Zimvie said it had approximately 2,700 employees at the end of 2022, including 1,100 focused on sales, marketing and commercialization, and another 150 employees focused on R&D.
Of ZimVie’s 2,700 employees, approximately 1,400 (53%) are in the U.S. Those foreign employees are primarily in Europe and Asia, including subsidiaries in Spain, France, Germany, Switzerland, Austria and the Netherlands.
ZimVie has not yet disclosed its median employee wage or CEO pay ratio. The SEC gives new companies time to comply with those disclosure requirements.
Today, the company announced plans to lay off 5% of its workforce.
“We have taken definitive actions to continue reducing operating expenses to improve our operating profile,” Jamali told investors on the Q1 2023 earnings call. “I am optimistic about the future of ZimVie.”
ZimVie debuted on the Medtech Big 100 ranking of the world’s largest medical device companies last year at No. 69, based on 2021 revenue of $1 billion.
ZimVie reported $913.9 million in total sales for 2022. Today, the company forecasted full-year 2023 revenue within the range of $835 million to $860 million.
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