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Michael Farrell

Chairman and CEO at RESMED
Board
Since March 1, 2013
Age
52 years
Education
Earned a Bachelor of Engineering with first-class honors from the University of New South Wales, a Master of Science in Chemical Engineering from MIT, and an MBA from the MIT Sloan School of Management.
Tenure
Joined RMD in 2000 and progressed through various leadership roles including senior positions in marketing and business development, Senior Vice President of the global sleep apnea diagnostic and therapeutic business (2007–2011), President of the Americas region (2011–2013), and has served as CEO since March 2013 with a transition to Chairman in January 2023.

Also at RESMED

BG
Bobby Ghoshal
Chief Commercial Officer, SaaS
BS
Brett Sandercock
Chief Financial Officer (CFO)
JL
Justin Leong
Chief Product Officer

About

Michael 'Mick' Farrell has built a distinguished career in healthcare and technology by steadily ascending through leadership roles at RMD since joining the company in 2000. His journey includes commanding senior roles in marketing, business development, and operational leadership before taking on executive responsibilities. As a cornerstone of the company’s transformation, his strategic vision has been pivotal to RMD’s focus on connected digital health and global access to important therapies.

In addition to his executive duties, he is actively engaged on multiple boards, contributing his expertise and governance skills to organizations such as Zimmer Biomet and the Advanced Medical Technology Association (AdvaMed). His work in these roles underscores a commitment to advancing healthcare and ensuring high standards in quality and regulatory practices.

Beyond his corporate achievements, he has a rich background in diverse industries including management consulting, biotechnology, chemicals, and metals manufacturing, which has broadened his operational perspective and problem-solving acuity.

Personal ties also shape his profile; he is the son of Peter Farrell, the founder of ResMed, and has integrated this legacy into a career marked by strategic leadership and community involvement, including duties as a trustee for multiple non-profit organizations.

$RMD Performance Under Michael Farrell

Past Roles

OrganizationRoleDate RangeDetails
ResMedPresident, Americas Region2011 - 2013 N/A
ResMedSenior Vice President, Global Sleep Apnea Diagnostic and Therapeutic Business2007 - 2011 N/A
ResMedSenior Roles in Marketing and Business Development2000 - 2007 Joined in 2000, with progressive promotions
Arthur D. LittleVarious Roles in Management ConsultingN/A N/A
Sanofi GenzymeVarious Roles in BiotechnologyN/A N/A
DowVarious Roles in ChemicalsN/A N/A
BHPVarious Roles in Metals ManufacturingN/A N/A

External Roles

OrganizationRoleDate RangeDetails
Advanced Medical Technology Association (AdvaMed)Board MemberApr 2015 - Present Chair, International Business Committee
Zimmer BiometDirectorDec 2014 - Present Chairman, Compensation and Management Development Committee; Member, Quality, Technology, and Regulatory Committee
UC San Diego FoundationTrusteeN/A N/A
Rady Children's HospitalTrusteeN/A N/A
Father Joe's VillagesTrusteeN/A N/A
University of California San Diego - Rady School of Management Advisory BoardMemberN/A N/A
Boston College Engineering Advisory BoardMemberN/A N/A

Fixed Compensation

Data from  FY 2024
Component NameAmountPayment ScheduleAdditional Details
Base Salary$1,185,000AnnualFixed annual salary
Company Contributions to Retirement Plans$13,800AnnualU.S. 401(k) contributions up to 4% of eligible compensation
Insurance Premiums$31,364AnnualCovers long-term disability and life insurance premiums
Personal Use of Company Aircraft$79,012AnnualVariable costs for fuel, maintenance, catering, and landing fees
Sales Incentive Award$11,778AnnualCovers travel, hotel, meals, and entertainment for executive and guest
Sales Incentive Award Tax Gross-Up$2,774AnnualReimbursement for taxes on imputed income from the sales incentive award

Performance Compensation

Data from  FY 2024

PSUaTSR (Absolute TSR)

MetricValueUnitDetails
Grant DateNovember 16, 2023Date
Grant Date Fair Value$2,800,081USD
Grant Date Stock Price$148.90USD
Threshold PSUs8,196Units50% earned at threshold
Target PSUs16,392Units100% earned at target
Maximum PSUs32,784Units200% earned at maximum
Vesting ScheduleAnnual over 3 years-Subject to continued service
Evaluation Period4 yearsYearsEarly earnout available after 3 years

PSUrTSR (Relative TSR)

MetricValueUnitDetails
Grant DateNovember 16, 2023Date
Grant Date Fair Value$2,799,947USD
Grant Date Stock Price$148.90USD
Performance MeasureRelative TSR-Compared against the S&P 500 Index
Threshold Payout45%Percentage7,611 units at threshold
Target Payout100%Percentage16,913 units at target
Maximum Payout200%Percentage33,826 units at maximum
Vesting ScheduleEnd of period-Vests on November 15, 2026
Evaluation Period3 yearsYearsNovember 16, 2023 to November 15, 2026

RSU (Adjusted Earnings)

MetricValueUnitDetails
Grant DateNovember 16, 2023Date
Grant Date Fair Value$2,800,029USD
Grant Date Stock Price$148.90USD
Q3 Earnings Threshold$173,806,482USD50% of RSUs earned if met
Q3 Actual Earnings$378,193,258USD50% of RSUs earned
Q4 Earnings Threshold$181,390,144USD50% of RSUs earned if met
Q4 Actual Earnings$384,752,507USD50% of RSUs earned
Combined Threshold$355,196,625USD100% of RSUs earned if met
Combined Actual Earnings$762,945,765USD100% of RSUs earned
Vesting ScheduleOne-third annually-Vests over 3 years contingent on continued service

Option Awards

MetricValueUnitDetails
Grant DateNovember 16, 2023Date
Number of Options55,468UnitsUnderlying shares
Exercise Price$148.90USD
Grant Date Fair Value$2,800,025USD
Vesting Schedule3 equal installments-Vest on November 11 of 2024, 2025, and 2026

Short-Term Incentive (STI)

MetricValueUnitDetails
Base Salary$1,168,987USDUsed for STI target calculation
STI Target Opportunity130%-of Base Salary
STI Target Amount$1,519,684USD
Actual STI Earned$1,613,032USD106.14% of target achieved
Adjusted Net Sales Threshold$4,053MUSD50% payout threshold
Adjusted Net Sales Target$4,768MUSD100% payout target
Adjusted Net Sales Maximum$6,198MUSD200% payout cap
Adjusted Operating Profit Threshold$1,269MUSD50% payout threshold
Adjusted Operating Profit Target$1,493MUSD100% payout target
Adjusted Operating Profit Maximum$1,941MUSD200% payout cap
Total Weighted Payout106.14%PercentageOverall performance achievement
Evaluation PeriodFiscal Year 2024-Based on annual performance
ConditionsContinued employment through payment date-No payout for performance below threshold