Lisa Earnhardt
ABBOTT LABORATORIESAbout Lisa Earnhardt
Lisa D. Earnhardt is Executive Vice President and Group President, Medical Devices at Abbott, promoted effective December 1, 2023 after previously serving as Executive Vice President, Medical Devices . In 2024 her base salary was set at $900,000 with a 115% bonus target; she earned a 120.7% total goal score driven by division net sales of $19.29B and margin outperformance, resulting in a $1,249,200 bonus . Long-term incentives emphasize alignment: a $4.03M grant in Feb-2024 split 50% stock options and 50% performance restricted shares that vest only if the Adjusted ROE target is achieved . Abbott’s TSR ranked at the 58th percentile (1-year) and 68th percentile (5-year) vs peers, providing context for pay-performance alignment during her recent tenure in role .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Abbott Laboratories | EVP & Group President, Medical Devices | Dec 1, 2023–present | Led Medical Devices to 2024 results including Adjusted Division Net Sales of $19.29B and strong goal attainment (total goal score 120.7%) . |
| Abbott Laboratories | EVP, Medical Devices | –Nov 2023 | Drove 2023 performance yielding a 99.6% total goal score and $904,900 annual incentive payout . |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $790,000 | $900,000 |
| Target Bonus % | 115% | 115% |
| Actual Annual Bonus ($) | $904,900 | $1,249,200 |
| All Other Compensation ($) | $85,380 | $130,047 |
- Perquisites detail (illustrative components): corporate automobile cost imputed $20,338 (2023) and $5,234 (2024); financial planning $10,000 (2023) and $10,000 (2024) .
Performance Compensation
Annual Incentive Plan (2024)
| Metric | Weight | Threshold | Target | Maximum | 2024 Actual | Goal Score |
|---|---|---|---|---|---|---|
| Adjusted Division Net Sales ($) | 20% | $18.79B | $19.11B | $19.34B | $19.29B | 27.8% |
| Adjusted Division Margin | 20% | Target | Target | 102.14% of Target | 101.4% of Target | 26.4% |
| Adjusted Division Gross Margin | 15% | 99.4% of Target | Target | 103.0% of Target | 99.8% of Target | 13.2% |
| Market Share | 10% | Target | Target | Target | Achieved | 10.0% |
| Adjusted Division Operating Cash Flow | 5% | Target | Target | 102.1% of Target | 100.7% of Target | 5.8% |
| Cash Conversion Cycle | 5% | 5 days over Target | Target | Target | Achieved | 5.0% |
| Strategic Metrics | 15% | — | — | — | Achieved (product approvals, production expansion) | 22.5% |
| Human Capital Metrics | 10% | — | — | — | Achieved (talent/succession targets) | 10.0% |
| Total Goal Score | — | — | — | — | — | 120.7% |
| Bonus Payout ($) | — | — | — | — | — | $1,249,200 |
Notes: Adjusted metrics exclude FX and certain items as defined; market share increase is required for target payout .
Long-Term Incentives (Design and Awards)
| Grant Year | Grant Date | LTI Award Value ($) | LTI Adjustment % | Allocation and Values | Key Terms |
|---|---|---|---|---|---|
| 2024 | Feb 21, 2024 | $4,033,700 | 110% (based on 2021–2023 individual assessment) | 50% Stock Options = $2,016,850; 50% Performance Restricted Shares = $2,016,850 | PRS vest only if Adjusted ROE performance target achieved; options value realized only via share price appreciation . Options exercise price $116.98, 64,787 options granted; PRS 17,240 units granted . Options vest 1/3 per year over 3 years . |
| 2023 | Feb 2023 | $3,369,000 | 100% | 50% Stock Options = $1,684,500; 50% Performance Restricted Shares = $1,684,500 | PRS vest only if Adjusted ROE performance target achieved; options value realized only via share price appreciation . |
- Company program uses 50% options / 50% performance-based restricted stock for senior executives; LTI guidelines set relative to peer TSR performance; PRS vesting is binary (100% or 0%) based on Adjusted ROE; no repricing/backdating; awards granted at regular Committee meetings .
Realized Equity Activity (2024)
| Item | 2024 |
|---|---|
| Options Exercised (Shares / Value) | 0 / $0 |
| Stock Awards Vested (Shares / Value) | 15,655 / $1,879,383 |
Equity Ownership & Alignment
| Ownership Detail (as of date) | Value |
|---|---|
| Beneficially Owned Shares (Jan 31, 2025) | 61,462 |
| Options Exercisable Within 60 Days (Jan 31, 2025) | 421,036 |
| Unvested/Unearned Performance Restricted Shares at 12/31/2024 (# / $) | 5,749 / $650,269; 10,570 / $1,195,573; 17,240 / $1,950,016 |
| Outstanding Stock Options (select tranches) | 91,367 @ $80.98 exp. 6/9/2029; 114,940 @ $87.72 exp. 2/20/2030; 71,070 @ $124.04 exp. 2/18/2031; 53,586 ex./26,794 unex. @ $117.58 exp. 2/17/2032; 20,842 ex./41,685 unex. @ $106.24 exp. 2/16/2033; 64,787 unex. @ $116.98 exp. 2/20/2034 |
| Stock Ownership Guideline (EVP) | 3x base salary; officers below 50% of guideline after 3 years must retain 50% of future equity until compliant |
| Hedging/Pledging | Prohibited; no directors or officers have pledged shares |
Scheduled Vesting (supply/overhang indicators)
| Instrument | 2025 Vesting (Date) | 2026 Vesting (Date) | 2027 Vesting (Date) |
|---|---|---|---|
| Stock Options (by grant tranche) | 26,794 (2/18) ; 20,842 (2/17) ; 21,595 (2/21) | 20,843 (2/17) ; 21,596 (2/21) | 21,596 (2/21) |
| Performance Restricted Shares (by grant tranche) | Portions of 2022, 2023, 2024 grants eligible; vest 0%/33% each year if Adjusted ROE target achieved; in 2024 the ROE target was achieved and related portions vested on Feb 28, 2025 | Remaining tranches contingent on future ROE achievement | Remaining tranches contingent on future ROE achievement |
Employment Terms
- No employment agreements for named officers (company-wide) .
- Change-in-control agreements: double-trigger; if terminated without cause or resigns for good reason within 2 years post-CIC, lump sum equals 3x salary + bonus (target or 3-year average, as specified) plus unpaid/pro-rata bonus; up to 3 years of benefits and pension accruals; 280G cutback if beneficial; options generally remain exercisable for term; “good reason” includes adverse role change, pay/benefit reduction, or relocation >35 miles .
- CIC agreements remain in effect until Dec 31, 2026 and auto-extend upon a CIC .
- Ms. Earnhardt CIC economics (if CIC on 12/31/2024 followed by covered termination): cash termination payments $7,054,200; additional supplemental pension benefits $730,166; welfare/fringe benefits $109,355 .
- Termination (non-CIC) illustrations (12/31/2024): average annual trust distributions ~$147,533 over 10 years; one-time Supplemental Pension Plan deposit $624,170; monthly long-term disability benefit $62,460 for up to 24 months if disability .
Pension and Deferred Compensation (2024)
| Plan | Credited Service (Years) | Present Value of Accumulated Benefit ($) | Payments During Year ($) |
|---|---|---|---|
| Abbott Laboratories Annuity Retirement Plan | 6 | $131,762 | $0 |
| Abbott Laboratories Supplemental Pension Plan | 6 | $904,252 | $0 |
Governance, Compensation Framework, and Peer Context
- Say-on-Pay: Abbott averaged 91% shareholder support over the last five years .
- Peer benchmarking: Compensation set against a multi-industry peer set (e.g., J&J, Medtronic, Boston Scientific, Thermo Fisher, Stryker, Danaher) with guidelines positioned by relative TSR; awards granted at regular meetings; no option repricing/backdating .
- Clawbacks/recoupment: Dodd-Frank compliant clawback adopted; broader recoupment policy permits recovering incentive comp for misconduct causing significant financial harm .
Investment Implications
- Alignment: High equity mix (50% options / 50% performance RS) with ROE-based vesting and strict anti-hedging/pledging rules indicates strong alignment with long-term shareholder value; 2024 bonus drivers (net sales, margins, cash flow, market share) are operationally relevant to Medical Devices growth durability .
- Retention and CIC risk: No employment contract but robust double-trigger CIC protections (3x salary+bonus) reduce involuntary departure risk; Ms. Earnhardt’s CIC cash entitlement was modeled at ~$7.05M as of 12/31/2024, with additional pension and welfare benefits, which may influence retention and negotiation dynamics in strategic events .
- Selling pressure: Near-term vesting calendar shows meaningful option and PRS tranches in Feb 2025–2027; 2024 showed zero option exercises and ~$1.88M of vested stock, suggesting modest realized liquidity; monitor Form 4s around late-February vesting windows for potential supply .
- Pay-for-performance: 2024 total goal score (120.7%) and bonus payout reflect above-target execution on revenue and margin while maintaining market share and cash metrics; continued achievement of Adjusted ROE targets is pivotal for PRS vesting and realized LTI value .