Andrew Pierce
STRYKERAbout Andrew Pierce
J. Andrew “Andy” Pierce is Group President, MedSurg & Neurotechnology at Stryker, a role he has held since August 2019; he became a Named Executive Officer on October 1, 2021 when he and Spencer Stiles were appointed executive officers . He oversees Endoscopy, Instruments, Medical and Neurovascular divisions, along with Asia Pacific, Customer Solutions and Enterprise Strategy, and is a Hope College graduate (business, psychology, political science) . Annual incentives for Pierce are tightly linked to operational performance levers—adjusted operating income and margin, constant currency sales, free cash flow excluding recall payments, and adjusted EPS—at both the consolidated level and his MedSurg & Neurotechnology group . He serves on Envista Holdings’ Board of Directors, indicating external industry engagement .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Stryker | Vice President & GM, Craniomaxillofacial (CMF) | 2008 | Led CMF business, foundation for later group leadership |
| Stryker | Vice President & GM, Surgical and Neuro Spine ENT | 2009 | Expanded scope across surgical and neuro businesses |
| Stryker | President, Endoscopy Division | 2013 | Drove growth and portfolio leadership in Endoscopy |
| Stryker | Group President, MedSurg | 2018 | Elevated to group leadership across MedSurg |
| Stryker | Group President, MedSurg & Neurotechnology | Aug 2019–present | Broadened to include Neurotechnology; added Asia Pacific and Enterprise Strategy in 2021 |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Envista Holdings (NYSE: NVST) | Director | Not disclosed | Listed as current director on corporate site |
Fixed Compensation
| Metric | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Base Salary ($) | $666,667 | $695,833 | $720,833 | $750,000 |
| Target Bonus ($) | — | — | $652,500 | $679,500 |
| Target Bonus (% of Salary) | — | — | 90% (computed from $652,500/$725,000) | 90% (computed from $679,500/$755,000) |
| Actual Bonus Paid ($) | $621,837 | $475,020 | $1,174,500 | $917,325 |
Performance Compensation
Annual Bonus Plan Mechanics and Outcomes
| Metric (2023) | Weighting | Target | Actual | Payout (% of weighting) |
|---|---|---|---|---|
| Adjusted operating income – group (core) | 10% | $3.419B | $3.477B | 10.0% |
| Adjusted operating income – consolidated (core) | 10% | $4.788B | $4.972B | 10.0% |
| Adjusted operating income margin – consolidated (core) | 20% | 23.96% | 24.28% | 20.0% |
| Constant currency sales – group (core) | 20% | $11.814B | $12.152B | 20.0% |
| Constant currency sales – consolidated (core) | 20% | $19.783B | $20.480B | 20.0% |
| Free cash flow excl. recall (core) | 20% | $2.764B | $3.172B | 20.0% |
| Adjusted operating income – group (overachievement) | 10% | $3.557B | $3.477B | 2.3% |
| Adjusted operating income – consolidated (overachievement) | 10% | $4.932B | $4.972B | 10.0% |
| Constant currency sales – group (overachievement) | 15% | $12.050B | $12.152B | 15.0% |
| Constant currency sales – consolidated (overachievement) | 15% | $20.178B | $20.480B | 15.0% |
| Free cash flow excl. recall (overachievement) | 20% | $2.931B | $3.172B | 20.0% |
| Adjusted EPS (overachievement) | 30% | $10.29 | $10.60 | 30.0% |
| Total payout as % of target | — | — | — | 180.0% (after 12.3% downward adjustment) |
| Metric (2024) | Weighting | Target | Actual | Payout (% of weighting) |
|---|---|---|---|---|
| Adjusted operating income – group (core) | 10% | $4.198B | $4.302B | 10.0% |
| Adjusted operating income – consolidated (core) | 10% | $5.606B | $5.826B | 10.0% |
| Adjusted operating income margin – consolidated (core) | 20% | 25.25% | 25.70% | 20.0% |
| Constant currency sales – group (core) | 20% | $13.267B | $13.576B | 20.0% |
| Constant currency sales – consolidated (core) | 20% | $22.202B | $22.670B | 20.0% |
| Free cash flow excl. recall (core) | 20% | $3.320B | $3.552B | 20.0% |
| Adjusted operating income – group (overachievement) | 17.5% | $4.407B | $4.302B | 1.9% |
| Adjusted operating income – consolidated (overachievement) | 17.5% | $5.830B | $5.826B | 3.9% |
| Constant currency sales – group (overachievement) | 17.5% | $13.665B | $13.576B | 13.6% |
| Constant currency sales – consolidated (overachievement) | 17.5% | $22.868B | $22.670B | 12.3% |
| Adjusted EPS (overachievement) | 30% | $12.46 | $12.19 | 3.3% |
| Total payout as % of target | — | — | — | 135.0% |
Design note: In 2023 the Committee used a ±1% “range around target” for core measures; in 2024 certain overachievement payouts required achieving the consolidated adjusted operating income margin target first . CR modifiers were 0% in 2023 and 2024 .
Long-Term Incentives: Grants and Vesting
| Grant Year | Award Type | Grant Details | Vesting |
|---|---|---|---|
| 2024 | PSUs | Target 7,416; grant-date fair value $2,541,612 | Earned based on 3-year avg adj. EPS growth and net sales vs peers; settle early 2027 |
| 2024 | Stock Options | 19,780 options; exercise price $339.77; fair value $2,338,707; grant 2/7/2024 | Vest 20% annually over 5 years |
| 2023 | PSUs | Target 7,456 | Earned based on 3-year avg adj. diluted EPS growth and net sales; settle early 2026 |
| 2023 | Stock Options | 29,825 options; exercise price $268.22 (closing price 2/8/2023) | Vest 20% annually over 5 years |
| 2021 | RSUs | Grant 10/01/2021; one-third vesting on 10/01/2022, 10/01/2023, 10/01/2024 | Time-vest as scheduled |
| 2019 | RSUs | Grant 8/09/2019; one-third vesting on 8/01/2020, 8/01/2021, 8/01/2022 | Time-vest as scheduled |
| 2019 | PSUs | Grant 2/06/2019; 100% vest on 3/21/2022 if earned | Earned over 2019–2021 performance period |
| 2020 | PSUs | Grant 2/05/2020; 100% vest on 3/21/2023 if earned | Earned over 2020–2022 performance period |
| 2021 | PSUs | Grant 2/03/2021; 100% vest on 3/21/2024 if earned | Earned over 2021–2023 performance period |
| 2022 | PSUs | Earned over 2022–2024; vest 3/21/2025 if earned | Performance-based vesting |
| 2023 | PSUs | Earned over 2023–2025; vest 3/21/2026 if earned | Performance-based vesting |
All stock options vest 20% per year over five anniversaries from grant date .
Equity Ownership & Alignment
| As-of Date | Shares Owned (#) | Right to Acquire within 60 days (#) | Total (#) | % Outstanding |
|---|---|---|---|---|
| Jan 31, 2022 | 37,534 | 99,978 | 137,512 | <1% |
| Feb 29, 2024 | 53,238 | 126,700 | 179,938 | <1% |
The proxy does not disclose pledging or hedging by Pierce. Stryker notes a general practice to avoid tax gross-ups on perquisites, with limited exceptions (relocation, expatriate) .
Employment Terms
| Year-end Reference | Non-Compete Payment Potential | Payment Formula | Notes |
|---|---|---|---|
| Dec 31, 2022 | $1,175,020 | Monthly 1/12 of total salary + incentive bonus paid in prior 12 months, less other compensation | 12-month non-compete; Company discretion to enforce |
| Dec 29, 2023 | $1,899,500 | Monthly 1/12 of prior 12 months’ salary + bonus, net of other sources | No employment/severance agreement in place |
| Dec 31, 2024 | $1,672,325 | Monthly 1/12 of prior 12 months’ salary + bonus, net of other sources | No employment/severance agreement in place |
- Equity treatment upon termination:
- Death/Disability: Options and RSUs become 100% vested; options exercisable for one year; PSUs vest prorata and are earned based on full 3-year performance period .
- Retirement: Options/RSUs continue vesting per schedule; PSUs continue vesting and are earned over full 3-year period, with prorata only if employed <12 months post-grant in 2024 disclosure .
- Other reasons: Options exercisable for 30 days; unvested awards forfeited .
Investment Implications
- Pay-for-performance alignment: Pierce’s bonus structure ties payouts to consolidated and group-level operating income, margin, constant currency sales, FCF excluding recall payments, and adjusted EPS; outcomes were 180% of target in 2023 and 135% in 2024, reflecting strong top-line and cash generation with tighter margin gating in 2024 .
- Equity mix shift toward PSUs: Beginning in 2024, long-term incentives are weighted more toward performance stock units than options, increasing alignment with multi-year earnings and sales growth versus peers .
- Vesting cadence and potential selling pressure: Annual PSU vest dates (3/21/2024, 3/21/2025, 3/21/2026) and RSU tranches (10/01/2022–2024) may concentrate liquidity windows; monitor Form 4 activity around March and October each year for potential insider selling pressure .
- Retention dynamics: No fixed severance or change-of-control multiples; enforceable 12-month non-compete with compensatory monthly payments reduces immediate exit risk but is contingent on Company enforcement and the executive’s re-employment status .
- Ownership skin-in-the-game: Beneficial ownership increased from 137,512 to 179,938 total shares (owned plus rights to acquire within 60 days) from 2022 to 2024, maintaining sub-1% ownership but demonstrating increased exposure to equity outcomes .