By Jon Kamp Of DOW JONES NEWSWIRES Zimmer Holdings Inc. (ZMH) Chief Executive David Dvorak received total compensation of $9.6 million last year, up 35% from the prior year as the orthopedics company battled a tough economic environment. The market for replacement hips and knees has been under pressure as patients defer surgery due to worries about out-of-pocket costs or long stretches away from work. But Zimmer's sales trends in those markets improved toward the end of the year while Dvorak said the company saw some stabilization in procedure volumes and expected further recovery. In the meantime, the company last year "executed several important product launches, which we believe will position us for accelerated growth as the economy strengthens," Zimmer said in a proxy filing Friday with the Securities and Exchange Commission. Zimmer shares declined 9.2% in 2010. They have rebounded in the new year, though, and are up 12% thus far. Dvorak's base pay rose 6% last year to $833,654, according to the proxy filing. The value of stock awards at the time they were granted rose by more than $2 million to $3.6 million. Also, his annual cash incentive rose to more than $1 million. -By Jon Kamp, Dow Jones Newswires; 617-654-6728; jon.kamp@dowjones.com
So, what it the moral of this story....a completely useless CEO is slowly but surely ruining a once great orthopedic company and he gets paid millions of dollars to do it? Exactly!
