Form 4: Cheryl Pegus Acquires Deferred Stock Units in Boston Scientific Corp (BSX)

Cheryl Pegus, a director of Boston Scientific Corp, was granted deferred stock units following her initial appointment to the Board of Directors.

Summary

• Cheryl Pegus, a director at Boston Scientific Corp (BSX), received deferred stock units on June 3, 2024.
• These units were granted following her initial appointment to the Board of Directors.
• 2,800 deferred stock units were granted as part of the non-employee director compensation program, prorated for the period until the 2025 annual meeting, reflecting a value of approximately $211,474.
• An additional 407 deferred stock units were granted in lieu of 25% of her yearly cash compensation, also prorated, reflecting a value of approximately $30,737.50.
• Each deferred stock unit represents the right to receive one share of Boston Scientific common stock.
• The deferred stock units vest in full upon the next annual meeting of stockholders.
• Vested shares will be issued after separation from Board of Director service, according to the Non-Employee Director Deferred Compensation Plan.
• Following the transaction, Ms. Pegus directly owns 3,207 deferred stock units.

Sentiment

Score: 7

Explanation: The document reflects a routine director compensation arrangement, which is generally viewed neutrally. The alignment of director and shareholder interests is a positive factor.

Positives

• The grant of deferred stock units aligns the director's interests with those of the shareholders.
• The vesting schedule encourages continued service on the Board of Directors.

Future Outlook

The vested shares will be issued to the reporting person following the reporting person's separation from Board of Director service, in accordance with the Company's Non-Employee Director Deferred Compensation Plan.

Industry Context

Director compensation packages often include equity-based awards to align the interests of directors with those of shareholders. Deferred stock units are a common component, vesting over time and payable upon separation from service.

Comparison to Industry Standards

• Director compensation at Boston Scientific, including equity awards, is likely benchmarked against peer companies in the medical device industry.
• Companies like Medtronic, Abbott Laboratories, and Stryker are likely comparables for director compensation practices.
• The specific value and structure of the deferred stock units would be compared to industry averages and best practices to ensure competitiveness and alignment with shareholder interests.

Stakeholder Impact

• Shareholders benefit from the alignment of director interests with long-term company performance.
• The director is incentivized to contribute to the company's success through equity ownership.

Next Steps

• The deferred stock units will vest at the next annual meeting of stockholders.
• The shares will be issued following the director's separation from the Board.

Key Dates