Tim Schmid

About Tim Schmid

Tim Schmid, 55, is Executive Vice President and Worldwide Chairman, MedTech at Johnson & Johnson, appointed to the Executive Committee in 2023 after joining J&J in 1993 and holding senior posts including Chief Strategic Customer Officer and President of Ethicon . In 2024, J&J’s Enterprise annual incentive paid at 115.0% of target, while 2022–2024 PSUs paid 63.6% (EPS above target, TSR below threshold), framing pay-for-performance outcomes during his tenure . Schmid’s MedTech leadership emphasized portfolio reshaping and execution, including >30 business development transactions, acquisitions (Shockwave, V-Wave), and a segment operating model redesign to improve speed and accountability .

Past Roles

Organization	Role	Years	Strategic Impact
Johnson & Johnson MedTech Asia Pacific	Company Group Chairman	2018–2023	Led APAC MedTech operations prior to elevation to Executive Committee
Johnson & Johnson MedTech	Chief Strategic Customer Officer	Not disclosed	Senior commercial leadership role shaping strategic customer engagement
Ethicon (J&J)	President	Not disclosed	Led surgical platform within J&J MedTech

External Roles

No external directorships or public company board roles for Schmid were disclosed in the filings reviewed .

Fixed Compensation

Metric	2024	2025
Base Salary ($)	$896,308	$950,000 (base salary rate)
Target Annual Incentive ($)	$1,125,000 (plan target)	Not disclosed
Actual Annual Incentive Paid ($)	$1,294,000	Not disclosed

Performance Compensation

Annual Incentive Framework and Outcomes (Enterprise)

Financial Measure	Weight	Threshold	Target	Maximum	Result	Payout	Weighted Payout
Operational Sales ($mm)	70% total financial weighting	$84,170	$88,600	$93,030	$89,385	117.7%	39.2%
Adjusted Operational EPS		$10.12	$10.65	$11.18	$10.91	148.8%	49.6%
Free Cash Flow ($mm)		$15,300	$17,000	$18,700	$17,341	120.1%	40.0%
Financial Payout Factor							128.8%

Strategic Goals	Weight	Committee Assessment	Weighted Payout
Enterprise Strategic Objectives	30%	94.0% based on pipeline, quality/compliance, HCM, sustainability	28.2%

Enterprise Factor	Calculated Factor	Discretion	Final Factor
2024 Enterprise Payout	118.4%	-3.4 pts discretionary reduction	115.0%

Schmid Annual Incentive	Target ($)	Final Enterprise Factor	Actual Payout ($)
2024	$1,125,000	115.0%	$1,294,000

Notes:

Annual incentive payout metrics exclude the $5.1B talc settlement charge under J&J’s non-GAAP compensation policies .

Long-Term Incentives: Design and 2024 Grants

LTI Type	Design Mix	Performance/Vesting	Determination Basis
PSUs	Company-wide target mix includes PSUs (historically largest component)	3-year; earns 0–200%; 50% cumulative adjusted operational EPS, 50% relative TSR CAGR vs competitor composite; pays based on share price	Non-GAAP EPS and relative TSR vs peer composite
Options	Included in mix	1/3 vests per year; 10-year term	Share price appreciation
RSUs	Included in mix	1/3 vests per year	Share price

2024 Grant (Schmid)	Grant Date	Shares/Contracts	Key Terms
PSUs (2024–2026)	2/15/2024	Target 19,097; Max 38,194	3-year performance; EPS and relative TSR; no dividend equivalents
RSUs	2/15/2024	3,085	1/3 per year vesting
Stock Options	2/15/2024	49,658	Exercise price $157.92; 10-year term; 1/3 per year vesting

PSU Payout (Company-Wide 2022–2024 Cohort)

Measure	Weight	Threshold	Target	Max	Actual	Payout
Cumulative Adjusted Operational EPS	50%	$28.37	$31.52	$34.67	$32.38	127.3%
Relative TSR (CAGR)	50%	10% below composite	Equal to composite	10% above composite	-11.1 points vs composite	0.0%
PSU Payout Factor						63.6%

Outstanding Equity Awards (as of FY-end 2024)

Instrument	Grant Date	Status	Quantity	Exercise Price	Expiration
Stock Options	2/13/2023	Exercisable	4,130	$162.75	2/13/2033
Stock Options	2/13/2023	Unexercisable	8,258	$162.75	2/13/2033
Stock Options	2/15/2024	Unexercisable	49,658	$157.92	2/15/2034
RSUs	2/13/2023	Unvested	998	N/A	N/A
RSUs	2/15/2024	Unvested	3,085	N/A	N/A
PSUs	2/15/2024	Unearned (target)	12,861 market/payout value $1,865,488	N/A	N/A

Additional legacy options from 2016–2021 remain exercisable and outstanding with listed strike prices and expirations (e.g., 2/10/2020: 22,527 exercisable at $151.41, expiring 2/10/2030) .

Equity Ownership & Alignment

Ownership Metric	Value
Common Shares Owned	17,748
Deferred Share Units	0
Common Shares Underlying Options/Stock Units (within 60 days)	135,608
Total Beneficially Owned	153,356
Executive Stock Ownership Guideline	6x base salary for NEOs
Compliance Status at 12/29/2024	In compliance; threshold not yet met; has until 2028 to reach guideline
Pledging/Hedging	Prohibited for directors and executive officers
Post-vesting Sale Restriction	After-tax shares from LTI cannot be sold until guideline met

Employment Terms

Provision	Details
Employment Agreement	No employment agreements with named executive officers
Severance Plan (U.S.)	Two weeks of base salary per year of service; minimum 52 weeks for NEOs; paid as salary continuation
Schmid Cash Severance (Involuntary, no cause)	$1,073,077 (62 weeks, 31 years eligible service; 2024 salary rate $900,000)
Schmid Healthcare Coverage (Involuntary, no cause)	$241,000
Schmid Equity Incentives (Termination Treatment)	$3,570,985 (amounts continue vesting or accelerate per plan and qualifying separation provisions)
Change-of-Control Treatment	No individual CIC agreements; awards only accelerate if not assumed/substituted; if assumed, continue vesting post-CIC
Clawback/Recoupment	Comprehensive policies for restatements and significant misconduct; SEC-compliant mandatory recovery for restatements (3-year lookback)
Non-Compete/Non-Solicit	Included in severance agreement conditions (release and compliance)

Additional governance: J&J adopted an Executive Officer Cash Severance Policy requiring shareholder approval for cash severance above 2.99x salary+target bonus; standard severance maximum is 2.0x salary for U.S. employees .

Compensation Structure Details and Notable Items

Item	Detail
2024 Total Direct Compensation (TDC)	Salary $896,308; Annual Incentive $1,294,000; LTI $4,500,000; Total $6,690,308
2024 Summary Compensation Table (SCT) Total	$11,862,938 (includes stock/option grant-date values, pension changes, perqs, tax assistance)
2024 Perquisites	$212,012 including $198,649 relocation plus limited aircraft/home/personal security
2024 Tax Assistance (Relocation)	$3,799,583 tax assistance due to relocation from Singapore under standard international executive package
2024 Annual Incentive Metric Exclusions	Excluded $5.1B talc charge per non-GAAP policies
2024 PSU Design Notes	No dividend equivalents; EPS non-GAAP reconciliation referenced

Investment Implications

Alignment and retention: Strong equity weighting (PSUs/options/RSUs) and 6x salary ownership guideline, with prohibition on pledging/hedging and restriction on selling post-vest shares until guidelines are met, align Schmid with shareholders and temper near-term selling pressure .
Pay-for-performance: 2024 bonus funded at 115% amid Enterprise outperformance; PSUs (2022–2024) paid below target (63.6%) due to relative TSR underperformance, signaling balanced accountability to both fundamentals and market returns .
Severance discipline: No individual CIC arrangements; severance is formulaic salary continuation (62 weeks for Schmid) with equity treatment contingent on plan terms and award assumption, reducing windfall risk and change-of-control payouts .
Mobility-related optics: 2024 relocation tax assistance ($3.80M) and perqs (~$212k) reflect global executive relocation; notable in SCT totals but governed by standard policy and do not involve tax gross-ups beyond relocation support .
Governance and shareholder sentiment: Say-on-Pay support ~90% in 2024 and robust compensation committee oversight (Semler Brossy advisor), including transparent treatment of large litigation charges, suggest investor acceptance of program design .